Chat Transcript

Insurance | 16 Jun - 10:00hrs

What is the outlook on equities?


Dipen Shah | Head of Private Client Group Research, Kotak Securities

guest: suggest one best mid-cap, want to go for SIP for 5 years. Kindly suggest some low price script. Thank you.
Dipen Shah: In terms of mid caps, please focus on companies which have credible managements and reasonably strong balance sheets. These stocks will give you sustained good returns
guest: Hello Dipen, I am holding NBCC@110/- avg... Should i book profit or continue to hold it. I don`t require money right now. Also having coal india at IPO price. Please suggest.
Dipen Shah: We currently have a target of 992 on NBCC.
kank20: hello sir!! pls advice whether I can continue to hold JBM Auto, Gabriele for next 6 months-1 yr. Also pls advice on 2 wheeler like TVS Motors that I am invested. Thanks
Dipen Shah: On TVS, we have a target of 250 currently
guest: how many points that does sensex loose if greece deal doest go throug. I think thats what normal invester is interested in.does it loose like 1000 points or 2000 points??
Dipen Shah: It is very difficult to quantify the extent of market fall. However, if the deal does not go through, Greece may exit Eurozone. There are various institutions, which have exposure to Greece and they may face crunch situation. Also, the global financials markets will witness volatility and FIIs may think of exiting riskier asset classes like emerging markets and take money back to US. How much money will flow out is anybody`s guess. We think that, this eventuality will not occur and a compromise will be arrived at
jaffer_shariff: Hi Dipen, Please let me know currently in which stocks should i invest for short term. Need your valuable help and suggestion. Thanks, Jaffer
Dipen Shah: It is very difficult to give short term calls because of the significant volatility. We would recommend investing for the longer term which is at least 9-12 months. This will create real wealth.
Dipen Shah: It is very difficult to guarantee monthly income in equities. Moreover, guaranteed returns of 60% annually is a tall ask. However, we believe that, if one invests at the current levels, the benchmark indices can give annualised 15% returns over the next 3-4 years and individual stocks can give much higher returns than the benchmarks.
guest: in future how the market will perform ??
Dipen Shah: We expect the markets to do well from the current levels. The Government reforms will result in better days ahead for markets. The factors like monsoons, Greece issue, etc may have a short term impact but we do not expect much downside because of these factors.
guest: is it possible to trade stocks for full time from home?
Dipen Shah: There are various brokers who provide this facility. Trading on mobile is widely prevalent now. So, it should not be a problem to do so.
guest: in which i should invest for long time like one year or two year
Dipen Shah: Once again, without getting into stock names, we would recommend to please focus on companies which have credible managements and reasonably strong balance sheets. These stocks will give you sustained good returns and create wealth for you
guest: What is your sectoral outlook - overweight, neutral and underweight?
Dipen Shah: We expect markets to do well on the back of Government initiatives. So, we have a bias for banking and domestic investment related stocks. On the other hand, with the US economy doing well, we expect interest to be sustained in export-oriented sectors like IT and Pharma, which we should not ignore. However, more exposure can be had in select private sector banks, and investment-oriented themes
guest: your view on Mahindra lifespace and ashok leyland... I am earning profit of 20% and 140% right now. Do you suggest booking profit in any one or in both stocks?
Dipen Shah: On the CV sector, we have seen significant growth in the medium and heave CV market. Some of it is fleet replacement but the numbers indicate that there is some sort of revival there. The Government spend has also picked up in the current fiscal and we are seeing consistent growth in manufacturing in the IIP numbers. The coal block auctions should lead to increased activity in mining. All these should bode well for the CV players, foing ahead.