'We should build on this rally'
Ramesh S Damani is fairly optimistic this week. He expects the Sensex to test 4550-4600 levels soon.
Mr Ramesh Damani (Wed Aug 16 19100 5:45 IST)
Hello everybody. Thanks for joining in. Let's start.
narendra (Wed Aug 16 19100 5:6 IST)
what about HDFC BANK
Mr Ramesh Damani (Wed Aug 16 19100 5:46 IST)
Narendra - I am a fan of HDFC Bank. Good long term bet
sangeetha (Wed Aug 16 19100 5:46 IST)
Hi Ramesh, i bought GLOBALTELE@1300 and ZEE@410. should i hold/sell?
Mr Ramesh Damani (Wed Aug 16 19100 5:47 IST)
sangeetha - i would sell them in this rally and convert to the leaders.
agm (Wed Aug 16 19100 5:47 IST)
Good evening, Mr. Damani. I have Sterlite (bought at 725). Should i hold it long term or sell it if it goes up again tomorrow?
Mr Ramesh Damani (Wed Aug 16 19100 5:48 IST)
agm - book some profits on sterlite. It will be very volatile. Earnings though are excellent.
Atul (Wed Aug 16 19100 5:47 IST)
What is the future of market till 31st March, 2001? and what are the chances of surpassing the oil pool deficit?
Mr Ramesh Damani (Wed Aug 16 19100 5:49 IST)
Atul - Dow and Hang Seng are within 5% of all times high. That is good. We are going to get a hike in petrol prices SOON.
sangeetha (Wed Aug 16 19100 5:49 IST)
thanx...and the leaders would be??? - your suggestions pls. :)
Mr Ramesh Damani (Wed Aug 16 19100 5:49 IST)
sangeetha - ITC and INFY. Old and New.
agm (Wed Aug 16 19100 5:49 IST)
I have been following one of your favourites - Birla 3M. Seems to have very low volumes - isn't that dangerous?
Mr Ramesh Damani (Wed Aug 16 19100 5:50 IST)
agm - B group shares have low volumes especially in this market. Birla 3M is for believers.
rahulji (Wed Aug 16 19100 5:49 IST)
onward tech, why r u bullish on this counter
Mr Ramesh Damani (Wed Aug 16 19100 5:50 IST)
rahul- onward has fallen from 900 to 170. Company could earn Rs 15 next year. Good tie up with Novell. Looks attractive at current valuation.
sangeetha (Wed Aug 16 19100 5:50 IST)
i had 50 satyam@2600 before split...should i hold/sell - i noticed over the last few chat sessions that u prefer infy to satyam... :)
Mr Ramesh Damani (Wed Aug 16 19100 5:51 IST)
sangeetha - that is true. SIFY the ISP valuation was too frothy. INFY has better quality of earnings.
agm (Wed Aug 16 19100 5:51 IST)
I have some Polaris from IPO - is this rally (if there is one) time to book some profits and move to Infy or so?
Mr Ramesh Damani (Wed Aug 16 19100 5:52 IST)
agm - switch to INFY, SSI, or Visual.
Atul (Wed Aug 16 19100 5:51 IST)
Where do you think there is a strong support in the BSE sensex?
Mr Ramesh Damani (Wed Aug 16 19100 5:52 IST)
Atul - looks like we have made a higher bottom at 4150.
rahulji (Wed Aug 16 19100 5:51 IST)
oil price hike, how will it affect cement stocks??
Mr Ramesh Damani (Wed Aug 16 19100 5:53 IST)
rahulji - yes for transportation. It's bad news as freight costs are key component of cement pricing.
vijay (Wed Aug 16 19100 5:52 IST)
What's your view considering that Dow is near its all-time high and FIIs continue as buyers this month so far barring two day.. on Monday they have bought Rs 184 crore net...
Mr Ramesh Damani (Wed Aug 16 19100 5:53 IST)
vijay - dow should test its all time high. which would make all equity markets look attractive. World economy is still doing well
rahulji (Wed Aug 16 19100 5:53 IST)
tata tele, shyam tele should i go for it
Mr Ramesh Damani (Wed Aug 16 19100 5:54 IST)
rahul - lukewarm endorsement.
vijay (Wed Aug 16 19100 5:55 IST)
Whst's the story in ITC Mr. Ramesh? globally tobacco stocks are in bad shape...
Mr Ramesh Damani (Wed Aug 16 19100 5:55 IST)
vijay - globally tobacco stocks are up and it looks like good value at 20x this year's earnings.
Atul (Wed Aug 16 19100 5:55 IST)
How is HDFC Growth Fund for investments?
Mr Ramesh Damani (Wed Aug 16 19100 5:55 IST)
Atul - not tested HDFC Fund. Go with an established player.
agm (Wed Aug 16 19100 5:55 IST)
mtnl is at its 52-week low. is it a good short term bet (till the ADR?)
Mr Ramesh Damani (Wed Aug 16 19100 5:56 IST)
agm - mtnl is a recommended stock that has not worked out. Bharti Telecom has a higher implied valuation than this co. Amazing -- the PSU Curse.
sangeetha (Wed Aug 16 19100 5:55 IST)
Hi Ramesh, about satyam - last Tuesday, it closed at 2337.70 On Wed, after 5 for 1 split, it opened at 479.70 and the previous closing price was given as 425.60 => (* 5 = 2128 and not 2237.70) I am new to the markets (trading since May) and this is my first split, so i don't understand the logic. Kindly explain. Thanx!
Mr Ramesh Damani (Wed Aug 16 19100 5:59 IST)
sangeetha - the previous closing price was 2337/5 of 467. The stock opened with a gap. Exchange tinkers occasionaly with closing price on fist day when stock goes ex-bonus, ex-rights or split.
rahulji (Wed Aug 16 19100 5:58 IST)
HCL INFOSYS OR HCL TECH -YOUR PICK
Mr Ramesh Damani (Wed Aug 16 19100 5:59 IST)
rahulji - neither HCL TECH or HCL infosys.
Atul (Wed Aug 16 19100 5:58 IST)
What do you think about tomorrow's BSE sensex?
Mr Ramesh Damani (Wed Aug 16 19100 5:59 IST)
Atul - we should build on this rally.
globaltele (Wed Aug 16 19100 5:59 IST)
i hold global tele. advice.
Mr Ramesh Damani (Wed Aug 16 19100 6:0 IST)
globaltele - I am not a fan of the stock
rahulji (Wed Aug 16 19100 6:0 IST)
EBIDTA ??
Mr Ramesh Damani (Wed Aug 16 19100 6:1 IST)
rahulhi - ebidta is earnings before interest, depreciation, taxes and amortisation. It helps you value companies on cash flow.
agm (Wed Aug 16 19100 6:1 IST)
idbi bank - seems cheap - good earnings, good (??) parentage. your recommendations?
Mr Ramesh Damani (Wed Aug 16 19100 6:1 IST)
agm - good parentage is a matter of judgment. Look at its parent's valuation??
vijay (Wed Aug 16 19100 6:0 IST)
If i have 10 lakhs where should i put it?
Mr Ramesh Damani (Wed Aug 16 19100 6:2 IST)
vijay - if you are new to investing a diversified mutual fund.
sangeetha (Wed Aug 16 19100 6:2 IST)
thanx Ramesh - one last Q! i bought polaris@1070 ... been down since then... will it reach the same level again so that i can get a no profit/no loss or should i sell now?
Mr Ramesh Damani (Wed Aug 16 19100 6:3 IST)
sangeetha - it should rally in the next few days giving you a chance to exit.
sangeetha (Wed Aug 16 19100 6:4 IST)
Thanx a lot, Ramesh - C U next week! Cheers till then! :)
rahulji (Wed Aug 16 19100 6:1 IST)
GUJ GAS--BUY???
Mr Ramesh Damani (Wed Aug 16 19100 6:3 IST)
rahulji - I know good brokers recommending British Gas (Guj gas). I also like GAIL but it suffers from the PSU curse.
vijay (Wed Aug 16 19100 6:4 IST)
no.. i am looking at increasing my exposure in the market directly
Mr Ramesh Damani (Wed Aug 16 19100 6:5 IST)
vijay - buy 50% tech and 50% fmcg type of stocks. 75% should be in liquid stocks.
rahulji (Wed Aug 16 19100 6:5 IST)
GAIL ALSO SUFFERS FROM--ROLLING SETTLEMENT
Mr Ramesh Damani (Wed Aug 16 19100 6:5 IST)
rahulji - so will all A group stocks in 3 months
vijay (Wed Aug 16 19100 6:6 IST)
which would you suggest in tech and fmcg, considering liquidity?
Mr Ramesh Damani (Wed Aug 16 19100 6:7 IST)
vijay - infy, ssi or huges. fmcg - nestle, birla 3m and abbott (both illliquid)
rahulji (Wed Aug 16 19100 6:4 IST)
I HAVE RECENTLY PURCHSED UNITED PHOS--6CR Q1 N.P. WHERE AVENTIS FAILED TO GIVE EVEN PROFIT YOUR VIEW
rahulji (Wed Aug 16 19100 6:8 IST)
UNITED PHOS OR AVENTIS???
Mr Ramesh Damani (Wed Aug 16 19100 6:8 IST)
rahul - if i had to choose I would buy aventis
rahulji (Wed Aug 16 19100 6:10 IST)
Siemens has announced plans to hive off its 26% stake in Siemens Nixdorf Information Systems. The company is also buying a 26% stake in VXL Landis & Gyr Ltd. from Birla VXL Ltd at Rs 27.05 per share-BUY SIEMENS??
Mr Ramesh Damani (Wed Aug 16 19100 6:12 IST)
rahul - I had not heard about it. Is Siemens Nixdorf coming with an IPO
rahulji (Wed Aug 16 19100 6:12 IST)
Some news from the IPO counter. Padmalaya Telefilms opened at Rs 110 and then closed at Rs 102, after touching a low of Rs 83 as against the issue price of Rs 100. On the other hand the Mukta Arts issue has successfully managed to scrape through, it was oversubscribed 1.23 times. All the hype surrounding media stocks has now died down, due to oversupply of ICE stocks. Investors would do well by booking profits, especially in stocks that are expensive,YOUR VIEW
Mr Ramesh Damani (Wed Aug 16 19100 6:13 IST)
rahul - after this period dies down, buy the media co's that own or produce content. Distribution is passe. Content is KING. People need to watch something.
rahulji (Wed Aug 16 19100 6:13 IST)
Satyam dilutes equity. A US based company TRW Inc is investing US$ 5 million (Rs 23 cr) for a stake in Satyam Computers. This sale of fresh equity will take place at Rs 3,580 per share (Rs 716 post-split) to a subsidiary of TRW. The current equity of Satyam is Rs 56 cr and the above-mentioned sale coupled with the proposed ADR issue will increase this further, depending on the ADR price. Though the funds raised can be put to good use like retiring debt and acquisitions, a frequent dilution of equity is not a good sign. However, the high price being paid by TRW shows their confidence in Satyam's financial position in spite of the fact that if you consolidate Satyam's results with that of Sify the picture is not very rosy BUY SATY??
Mr Ramesh Damani (Wed Aug 16 19100 6:14 IST)
rahul - I dont like co's that frequently dilute equity. That is why i have been recommending INFY instead of Satyam
satish (Wed Aug 16 19100 6:13 IST)
dear mr. damani which is the best cement share? satish-dubai
Mr Ramesh Damani (Wed Aug 16 19100 6:15 IST)
satish - the best continues to be GACL. ACC may give a better return over 6 months
ganesh (Wed Aug 16 19100 6:14 IST)
Is the current rally going to outlast the week?
Mr Ramesh Damani (Wed Aug 16 19100 6:16 IST)
ganesh - market could test 4550-4600 soon.
bushan (Wed Aug 16 19100 6:15 IST)
hello mr damani whats your say on ssi will it cross 3000 Rs by this week it has closed nearly 15%
Mr Ramesh Damani (Wed Aug 16 19100 6:17 IST)
bushan - around 2800 is doable when the index hits 4600
rahulji (Wed Aug 16 19100 6:16 IST)
Bad news for India. Crude prices have risen to a 10-year high of US$ 32.2 per barrel. This will have a cascading effect on the Indian economy, the government and corporates. The rise in the oil import bill will increase the pressure on an already weak rupee. To reign in the fiscal deficit the government will have to increase the prices of petro-products and this will impact all companies having large power and transportation costs and lead to an all round increase in inflation. The worrying factor is that this does not appear to be a temporary phenomenon as the OPEC nations are interested in maintaining this level. If this happens the Indian economy could be adversely impacted and core sectors will be the worst hit THIS WOULD MEAN WE SHOULD BE INVESTED IN ICE SHARES ONLY???
Mr Ramesh Damani (Wed Aug 16 19100 6:17 IST)
rahulji cannot disagreee with your analysis.
ganesh (Wed Aug 16 19100 6:17 IST)
which means IT stocks are good at current levels?
Mr Ramesh Damani (Wed Aug 16 19100 6:17 IST)
ganesh - on a trading basis IT stocks look good.
bushan (Wed Aug 16 19100 6:18 IST)
how will zee, global perform this week
Mr Ramesh Damani (Wed Aug 16 19100 6:18 IST)
bushan - in tune with the market
rahulji (Wed Aug 16 19100 6:19 IST)
BRITANNIA GOING FOR STOCK SPLIT WILL IT BE A BUY??
Mr Ramesh Damani (Wed Aug 16 19100 6:20 IST)
rahul - sure britannia is good
rahulji (Wed Aug 16 19100 6:20 IST)
PENTA MEDIA??????
Mr Ramesh Damani (Wed Aug 16 19100 6:20 IST)
rahul - not the right time fo pentamedia
Anirudh (Wed Aug 16 19100 6:21 IST)
Hello Sir, Anirudh from Baroda What you think about HFCL and Global Tele ??
Mr Ramesh Damani (Wed Aug 16 19100 6:23 IST)
Anirudh - i am not a fan of these momentum stocks
bushan (Wed Aug 16 19100 6:22 IST)
will infy cross Rs 8500
Mr Ramesh Damani (Wed Aug 16 19100 6:24 IST)
bushan - good chance of INFY over 8500
Mr Ramesh Damani (Wed Aug 16 19100 6:26 IST)
Thanks for joining in. have a prosperous week. See you next time.
Money
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