'Build cash'
Ramesh S Damani is disappointed by Friday's Cabinet meeting on privatisation. He also answers many stock-specific questions.
Mr Ramesh Damani (Wed Jun 28 19100 5:57 IST)
Hello everybody. Thanks for joining in. Let's start.
confused (Wed Jun 28 19100 5:30 IST)
why is the market so confused :-)?
Mr Ramesh Damani (Wed Jun 28 19100 5:58 IST)
confused - more of a lacklustre market with nowhere to go. Waiting for FOMC meeting perhaps
deepa (Wed Jun 28 19100 5:44 IST)
hello mr damani what do you think about psus like bhel, gail, mtnl specially as they r not included in disinvt list.
Mr Ramesh Damani (Wed Jun 28 19100 5:59 IST)
deepa - i am very disappointed. MTNL will have a bump when it list on NYSE. THe rest will underperform the market
vinoo (Wed Jun 28 19100 5:58 IST)
hi mr. damani what's your view on the disinvestment stocks now after the disappointing meeting?
Mr Ramesh Damani (Wed Jun 28 19100 6:0 IST)
vinoo - I was very upset. STC and MMTC are jokes. Clearly no appetite for 2nd generation reforms exist in India. We will pay for this as the market and as taxpayers.
Ramesh (Wed Jun 28 19100 5:50 IST)
Mr. Damani I strongly believe Rolta will touch Rs 1000 within six months after the next annual results and revamp of the market. What is your opinion?
Mr Ramesh Damani (Wed Jun 28 19100 6:1 IST)
Ramesh - I am not bullish on Rolta. See what happened to Silverline after NYSE listing. Lead Manager should be feeling embarassed
deepa (Wed Jun 28 19100 6:1 IST)
what do u feel for nestle, bel and beml at current levels. r they good buys?
Mr Ramesh Damani (Wed Jun 28 19100 6:1 IST)
deepa nestle and bel are good buys at current levels
Rinku (Wed Jun 28 19100 6:1 IST)
Please advice why the FIIs r selling? & r we in for another downtrend? Technically the market doesn`t have good support.
Mr Ramesh Damani (Wed Jun 28 19100 6:2 IST)
Rinku - FOMC meeting today and INFY Q1 results will set the pace. Also NASDAQ which looks weak to me. NASDAQ worries me the most.
vinoo (Wed Jun 28 19100 6:2 IST)
what's ur view on HLL?
Mr Ramesh Damani (Wed Jun 28 19100 6:3 IST)
vinoo - sell after the split
deepa (Wed Jun 28 19100 6:0 IST)
though gail has set up optic fibres etc and also bagged a good contract still the share is at very low levels. what do u feel
Mr Ramesh Damani (Wed Jun 28 19100 6:4 IST)
deepa - gail suffers from the PSU curse.
vinoo (Wed Jun 28 19100 6:4 IST)
how advisable is it to look at NASDAQ? How many software scrips are their in NASDAQ and what is the percentage of non-software scrips in NASDAQ?
Mr Ramesh Damani (Wed Jun 28 19100 6:5 IST)
vinoo - very stong correlation between NASDAQ and Sensex because both are perceived as tech markets. Keep a close watch on NASDAQ
Rinku (Wed Jun 28 19100 6:4 IST)
If nasdaq looks weak r u predicting another medium or thunderous downfall?
Mr Ramesh Damani (Wed Jun 28 19100 6:6 IST)
Rinku - maybe - especially since the GOI is not doing anything to get the economy moving.
deepa (Wed Jun 28 19100 6:6 IST)
but everyone is saying gail is a very good proposition for long term...don't u think it will rise in future
Mr Ramesh Damani (Wed Jun 28 19100 6:7 IST)
deepa - I own GAIL. I hope telecom assets will be worth something. In the short run though we have trouble.
deepa (Wed Jun 28 19100 6:7 IST)
what r ur opinion on indogulf at current levels
Mr Ramesh Damani (Wed Jun 28 19100 6:8 IST)
deepa no interest in Indo GUlf
deepa (Wed Jun 28 19100 6:8 IST)
what r ur upinion on beml at current levels
Mr Ramesh Damani (Wed Jun 28 19100 6:8 IST)
deepa -pray for disinvestment in BEML
Rinku (Wed Jun 28 19100 6:8 IST)
Do u advice at this moment to encash & place funds in the bank, get interest & enter when there's more clarity. (When the FIIs start buying slowly)
Mr Ramesh Damani (Wed Jun 28 19100 6:9 IST)
Rinku - in the short run yes - build cash.
shailendra (Wed Jun 28 19100 6:9 IST)
Tommorow BSE market go to up or down please say
Mr Ramesh Damani (Wed Jun 28 19100 6:10 IST)
shailendra - I wish i could predict that. NASDAQ will be volatile tonight so will we probably.
SKumar (Wed Jun 28 19100 6:9 IST)
Mr Damani: What would be your recommendation on Infotech Enterprises? Thanks. Kumar
Mr Ramesh Damani (Wed Jun 28 19100 6:10 IST)
SKumar- is this the Vinay Rai company??
rrhtrfd (Wed Jun 28 19100 6:10 IST)
what about HPCL, Satyam & Info at this level, should we buy
Mr Ramesh Damani (Wed Jun 28 19100 6:11 IST)
rrhtrfd - info, hpcl, satyam in that order.
deepa (Wed Jun 28 19100 6:9 IST)
mr damani,u don't have int in indogulf or is the share a bad one
Mr Ramesh Damani (Wed Jun 28 19100 6:11 IST)
deepa - just not followed IGF
Rinku (Wed Jun 28 19100 6:11 IST)
What's your opnion on Hinduja Finance?
Mr Ramesh Damani (Wed Jun 28 19100 6:11 IST)
Rinku - bull market is over in Hinduja Finance
Rinku (Wed Jun 28 19100 6:12 IST)
Do u recomend Himachal & Satyam in the future?
Mr Ramesh Damani (Wed Jun 28 19100 6:13 IST)
Rinky - I am negative on Himachal at current valuations. Satyam only luke warm
vinoo (Wed Jun 28 19100 6:13 IST)
What's ur view on Wipro?
Mr Ramesh Damani (Wed Jun 28 19100 6:13 IST)
vinoo - wipro is doing well but too expensive
vinoo (Wed Jun 28 19100 6:12 IST)
what impact will introduction of badla for rolling stocks have on rolling stocks? when do u see this happening ?
Mr Ramesh Damani (Wed Jun 28 19100 6:14 IST)
vinoo - speculation will shift from cash to the futures market. Large brokers and players will survive
Rinku (Wed Jun 28 19100 6:14 IST)
If u r negative on Himachal at current valuations. Satyam only luke warm then what scrip do u suggest in the new economy sector?
Mr Ramesh Damani (Wed Jun 28 19100 6:15 IST)
Rinku - Infy and Visual
Rinku (Wed Jun 28 19100 6:15 IST)
Why visual?
Mr Ramesh Damani (Wed Jun 28 19100 6:16 IST)
rinku - compelling growth story. Company could grow at 80% + for three years. Product and not service based.
rrhtrfd (Wed Jun 28 19100 6:16 IST)
I have bought HFCL at 2500/- please advise what to do at this level, should I book the loss or buy more to average my holding
Mr Ramesh Damani (Wed Jun 28 19100 6:17 IST)
rrhtrfd- I have said before thet i am not bullish on HFCL.
Rinku (Wed Jun 28 19100 6:17 IST)
What do u feel about digital equip?
Mr Ramesh Damani (Wed Jun 28 19100 6:18 IST)
Rinku - Too expensive Digital is
rrhtrfd (Wed Jun 28 19100 6:17 IST)
What about India Cement, GACL and ACC at present level
Mr Ramesh Damani (Wed Jun 28 19100 6:18 IST)
rrhtrfd- ACC, Ambuja and India are good value bets.
Gurudatta (Wed Jun 28 19100 6:18 IST)
Mr. Damani, kindly suggest me two potential investment scrips with a time horizon of 2 years Guru
Mr Ramesh Damani (Wed Jun 28 19100 6:19 IST)
Guru, I would wait for a couple of weeks for the air to clear. Log on in mid july
vinoo (Wed Jun 28 19100 6:18 IST)
Isn't Visual in rolling settlement? Does this not affect the valuations?
Mr Ramesh Damani (Wed Jun 28 19100 6:19 IST)
vinoo - yes. but what to do? People will ultimately pay for value
rrhtrfd (Wed Jun 28 19100 6:19 IST)
Please tell me something about sriven multitech
Mr Ramesh Damani (Wed Jun 28 19100 6:20 IST)
rrhtrfd- disastrous debut. Don't follow it otherwise
Rinku (Wed Jun 28 19100 6:20 IST)
If Digital is Too expensive then aren't Infosys & Visual?
Mr Ramesh Damani (Wed Jun 28 19100 6:21 IST)
Rinku look at the quality and how they have delivered in the past. Digital is doing some work like call centres which is low value.
vinoo (Wed Jun 28 19100 6:21 IST)
who are these people who would pay for value. If liquidity is not there how can the market properly value a stock?
Mr Ramesh Damani (Wed Jun 28 19100 6:22 IST)
vinoo - if the discount between value and market price is deep, buyers will climb out of the woodwork. Good shot that visual will go into A group in one year's time. Also you will benefit from it going ex bonus
Rinku (Wed Jun 28 19100 6:22 IST)
In the telecom sector what do u feel about Global Tele?
Mr Ramesh Damani (Wed Jun 28 19100 6:23 IST)
Rinku - Global is a mooooooomentum stock. Trade it do not invest in it
Rinku (Wed Jun 28 19100 6:25 IST)
Should one keep Wipro for 3-6 months period for average returns?
Mr Ramesh Damani (Wed Jun 28 19100 6:25 IST)
Rinku - sure, wipro should perform in line with the market
tapas saha (Wed Jun 28 19100 6:25 IST)
do you think indian stock markets are mature?
Mr Ramesh Damani (Wed Jun 28 19100 6:27 IST)
tapas - there are sharp good quality of traders but not deep enough yet. What we really need though is for the economy to grow at 10% so everyone grows.
Gurudatta (Wed Jun 28 19100 6:26 IST)
Which is a better buy - BHEL, ABB or Siemens
Mr Ramesh Damani (Wed Jun 28 19100 6:27 IST)
Guru - I like ABB
VIVEK (Wed Jun 28 19100 6:26 IST)
Pl advise to hold/sell infy/sify/hll
Mr Ramesh Damani (Wed Jun 28 19100 6:28 IST)
Vivek i would hold infy till at least Q1, Hll sell if trading position
Gurudatta (Wed Jun 28 19100 6:27 IST)
Why not BHEL
Mr Ramesh Damani (Wed Jun 28 19100 6:28 IST)
Guru - alas the PSU Curse is true for BHEL too
Mr Ramesh Damani (Wed Jun 28 19100 6:30 IST)
Thanks everyone for joining in. I will see you all next week, Have a prosperous week ahead. Bye.
Money
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