Your queries answered: Find 18 stocks that you can buy now

ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nestle BSE | NSE 29/05/12 Are Mutual Funds betting on Nestle? Other Stocks in this news Hindustan Unilever | ITC | Punjab National Bank | MBL Infrastructures | Hanung Toys and Textiles | BASF India | Lanco Infratech | Dunlop India | Coal India | Glenmark Pharma | Shree Renuka Sugars | Tata Motors | Eicher Motors | Mahindra and Mahindra | WABCO India | SpiceJet | State Bank of India | Axis Bank | Union Bank of India | Titan Industries | Tata Steel | Hindustan Construction Company |

Moneycontrol.com initiative, Know Your Investment, helps investors zero in on that perfect stock bet. 

This week, Kartik Mehta, AVP- Institutional Equity Research, Sushil Finance, plays mentor to investors, explaining his views on various stocks and sector.

Below are the questions you asked us on our Facebook page :

Hemant Shyamsukha: Is long term investment in equities dead for now? Are commodities going to outperform the equity market over the next couple of years?

Mehta: Long term equity can never be dead; it is a question of stock selection. Companies with quality management, healthy balance sheet and stable but scalable business make difference. Historically, equities have managed to give 15% average return. Commodities are divided into precious metals and base metals.

In uncertain economic period, precious metals such as gold and silver find attraction amidst rising risk aversion. One should consider them as hedge against inflation and global uncertainty, whereas, base metals are exposed to economical cycles. In rising cycle, they appreciate and in falling cycle they see depreciation. So, they are more risky in nature.

Equities, at one end, give opportunity to be part of both cyclical business such as metals, auto, real estate and stable business such as consumption stocks like Nestle , HUL , ITC or defensives such as pharmaceuticals.

Sikander Chopra: Is it the right time to invest in gold for a target of Rs 30,000.

Mehta: So far, gold has given enviable return amidst global inflation and rising default risk. But from here on, gold should not be considered as an option of investment. In fact, it should be considered as hedging tool against inflation and sovereign default risk.

Tarkesh Harchandani: Is it a right time to buy banking stocks such as Axis Bank and SBI as they available in low prices? Which is better of the two?

Mehta: Yes, it is right time to buy banking stocks with a long term view. Both are quality stocks and I would suggest you to go for SBI considering its size, scale and relatively attractive valuations.

Chandresh Jain: I have been holding Punjab National Bank since it filed its IPO. Any hope for this stock?

Mehta: PNB is one of largest PSU banks listed in the country and it certainly offers hopes. After correction, stock is available at attractive valuations. Since you are a long term investor, you must continue to hold it for better time ahead.

Pushkar Maniyar: What's your call on Union Bank , Titan and Tata Steel ?

Mehta: Union Bank can be considered as an investment choice with a long term vision. Tata steel is yet to see more pain, so avoid it as of now.

Seema Marwah: Should I keep holding MBL Infra , Hanung Toys , and  BASF for another six months?

Mehta: Infra stocks are suffering due to policy sluggishness, stubborn inflation and high interest rates. Their balance sheet is also under strain due to high leverage. We will see interest rate cycle pausing in the next six months; however, the real benefit of the same will take more time. So, it is better if you hold them for 12 months. You can also hold BASF.

Mithilesh Rai: Can I invest in HCC, Lanco Infra , Dunlop India for one year?

Mehta: HCC and Lanco Infra both fall into high risk high return game. I would rather suggest you to look at other safe infra bet with decent order book size, better working capital management and cash flow visibility.

Rahul Patil: I am planning to sell Coal India . What is the target for it?

Mehta: I suggest you to not sell it; you can instead think of adding more near Rs 350 levels if it falls.

Arun Sharma: What about Glenmark Pharma ?
 
Mehta: It is an excellent pharma company, which has managed to do out-licensing of NCE molecules. You would hardly find any other Indian pharma company, which has managed to do this. Its base business is also likely to grow at healthy 15% CAGR, which makes it a safe play. Buy it on dips for target of Rs 368.

Altaf Qureshi: I have 400 shares of Renuka Sugar , bought at Rs 64.  Should I hold or sell?

Mehta: Hold.

Ajay Gupta: What is your comment on Tata Motors ? I have a stock at the rate of Rs 1,000. What should I do?

Mehta: This stock falls in risky curve of automobile space with more focus on luxury cars and commercial vehicles. You can exit on rise near cost and switch over to safer auto plays such as Eicher Motors , M&M or ancillaries such as Wabco India .

Arun: What about Spicejet ? I bought 500 shares at Rs 31. Now it is around Rs 25 and it is not going up. Shall I hold or sell it?

Mehta: This stock is a culprit of rising competition, rising crude oil prices and falling load factor. You should exit on rise.