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Chat Transcript
30 Apr - 02:00 hrs
Vinay Khattar | Head- Research, Edelweiss Financial Services
What's a good strategy in the current market scenario?
Chat Transcript
| srikumar1976: Hi, I am holding GRUH Finance, Karur Vysya Bank. Can I HOLD these for long term? |
| Vinay Khattar: Both Gruh and Karur Vyasa are good picks and one can hold them on for the long term. While Gruh is not cheap at current levels but is an excellent stock from a long term holding perspective. Karur Vyasa though is currently attractively priced and can proovide upside in the shorter term too. |
| guest: FMCG OR I.T. WHICH IS A BETTER SECTOR TO INVEST AT CURRENT MARKET SCENARIO |
| Vinay Khattar: The IT demand especially in US continues to look good. While there are visa and immigration issues which can have short term bearing, the overall demand scenario looks attractive from a 1 year perspective. HCL Tech and Mind tree could be good bets. On the FMCG side dabur and emami could be interesting bets. |
| Vinay Khattar: Oil Marketing companies are a good bet at this stage due to structural changes happening in the sector. As the Govt moves to reduce subsidy element on diesel and LPG gas OMC`s would be the key beneficiaries as the underrecoveries would reduce leading to reduction in working cappital and interest cost in these companies. In addition there could be significant upside on Oil exploration in the Mozambique oil bloc for BPCL. |
| guest: can we short L&T at this level |
| Vinay Khattar: L&T is a capital goods company and is highly sensitive to cut in interest rates. As the rates get cut (expectation of 0.25% on 3rd May by the RBI) the capital goods and construction sectors can be key beneficiaries. L&T is the largest and most efficicent player in the sector with a strong brand. It would make sense to go long on the stock with an investment horizon of 1 to 2 years. Its a clear avoid for shorting. |
| srikumar1976: Hi, please suggest 3-4 Quality stocks for long term investment? |
| Vinay Khattar: ICICI bank, Lupin, Maruti,Bajaj Finance,Zee entertainment could be good bets as key low risk bets in the markets today. Certain higher risk higher return stocks which are in the midcap space can be Astral Poly, Mind tree, KPIT cummins and Bharat FOrge |
| guest: I HV BUY LICHSGFIN 254, WHAT TO DO ?? |
| Vinay Khattar: The results of the company have been quite good. The NIMS have expanded. In addition the company is in the housing finance sector. Any cut in intrest rates by RBI will be a positive for the sector and the company. This could be a good investment bet. |
| guest: in this volatility how one should get maximum retrurn from market? |
| Vinay Khattar: Markets have been quite volatile in the recent past. Our sense s that there is a process of durable bottom formation coming into place. With the sharp drop in Crude prices and Gold as well as expectation of a rate cut the markets are likely to be positively effected in the near term. From an investor with 1 to 2 year view invest in good quality stocks that we have suggested above.One can focus on rate sensitive sectors like banks, autos and capital goods |
| guest: Hi Vinay, I took homeloan before 1 year. I have some cash in hand now. Shall i invest in share market for long term stocks like reliance, infosys OR Shall i pay out cash on my home loan?. which is good strategy in current market? |
| Vinay Khattar: You should follow prudent policies with your capital. You should keep a healthy buffer in hand for any emergent requiremements. Should there still be capital avaialble you could look at investing in relatively safer investment ideas in the Large cap space with strong business model and good quality corporate governance standards. Some of the stocks which could be good Larsen and Toubro, ICICI Bank, Maruti and Zee could be good bets for investing. |
| guest: plz suggest 2 multibagger |
| Vinay Khattar: One should look at investing with a time horizon for 1 to 2 years atleast. Mulitbagger ideas could be the stocks which have become very cheap due to macro environment or the ones in which strong growth is expected over next few years. Considereing the volaitility in the stock markets and the intention to hold out for many years look at companies with strong business models and decent management credentials. Mid cap/small cap companies which could be part of this groupc ould be City Union Bank, Astral Polytechnic and TV18. |
| guest: what chance of rate cut by RBI. and how much % - MADHAV DESAI |
| Vinay Khattar: Our sense is that RBI will most likely cut interes rates by 25 bps or 0.25%. The key factors that will drive RBIs decision making is easing inflationary pressures with WPI less than 6%, easing pressure on the current account deficit (CAD) with reduction in prices of Crude and Gold. Also with growth gong downhill iin the past many quarters RBIs emphasis is expected to shift from containing inflation to reviving growth. |
