[04:15:50 PM] => Welcome to Chat Masala at Myiris.com - You shall be joined by Mr.Paresh Khandwala soon
[04:31:54 PM] => The views expressed by Mr..Paresh Khandwala is in his personal capacity and not necessarily of Khandwala Securities Limited or its group/ associate companies.
[04:38:04 PM] => He or his group companies may or may not have traded in the stocks and could have positions in the stocks mentioned.
[04:38:51 PM] => They would not undertake any responsibility for the information provided in the chat session
[04:41:18 PM] => They will not bear any liabilities arising by the usage of this information by anyone and do not guarantee for their views
[04:41:49 PM] => Welcome to the session Mr. Paresh Khandwala
[04:42:02 PM] => Paresh Khandwala Good evening
[04:42:27 PM] => Anant : Do you think it is a good idea to corporatise the Bombay Stock Exchange just like the NSE?
[04:43:48 PM] => Mr. Paresh Khandwala: It depends on what will be the guidelines/ structure suggested by the MoF and SEBI, with other authorities. But, there needs to be unity amongst the broking community to pass such a proposal with a thumping majority. On the valuation aspect, it will be many times higher than the membership available at current price. This takes into account complete valuations of their assets and Trade Guarantee Fund, contributed by the brokers. This process should go a long way in improving the overall image of the Indian capital markets to the global investment community and strengthen the financial systems in India. However, in my opinion, this question has come up at a adverse current scenario due to various factors, globally and locally, which is not unique by nature, irrespective of most proven systems in place. We should not forget, many a scams have occurred in Japan and USA, of which we all are well aware of.
[04:45:06 PM] => Sm3064 - Your Company had managed the IPO of Shree Rama Multi Tech. Now the share is trading at heavy discount to the issue price. What is your comment/ advise to the investors of SRML.
[04:45:55 PM] => Mr. Paresh Khandwala: The company performance till date has been very encouraging and has met all its promises to investors. It is the second largest packaging material manufacturer in the world, having the best possible technology of AISA (whose marketshare is 60% globally) and an enviable cleintele. On completion of the project, we see the performance of the company to improve significantly in future as well. So, at the current valutions, we believe the stock is grossly undervalued and should give handsome returns to investors over the medium term. The current decline in prices is more due to market sentiments, than anything else. The Indian Insititutions after the IPO were a constant mobiliser of the stock to the best of our knowledge. We believe value always prevails over the longer terms.
[04:49:34 PM] => Bimal Gala- Which industry can outperform the market expectations in next two quarters. I mean precisely which industry to invest in?
[04:50:20 PM] => Mr. Paresh Khandwala: We expect Technology, Pharma and Banking sectors to outperform, besides select commodities over the next two quarters.
[04:50:56 PM] => Fshah :What will happen to the market once short sales are lifted (the ban)
[04:52:53 PM] => Paresh Khandwala : I expect the market to move up , and provide a fairplay to all the participants
[04:55:13 PM] => Bimal Gala- Can biotech indiustry be the sunrise industry? if yes, are there any indications ?
[04:56:05 PM] => Mr. Paresh Khandwala: Yes, Biotech is a sunrise industry, but how one utilises the same is important. India does provide much greater potential at very low costs compared to all the developed economies
[04:56:52 PM] => Bimal Gala-Will the finance mnister revise the interest rates on small savings, a bit upwards? if yes, what impact will it have on economy and stocks?
[04:57:27 PM] => Mr. Paresh Khandwala: I do not expect it to happen as yet, due to easy liquidity conditions in the economy. However, there will not be any significant impact on economy and stocks, and the savings ratio at the national level will be maintained
[04:58:41 PM] => Bimal Gala-What impact does the cut in fed rates by 0.5 % have to indian economy and share bazaar in particular?
[04:59:05 PM] => Mr. Paresh Khandwala: It is a mere sentiment booster
[04:59:54 PM] => Vineet Do you feel the current rally in the technology stocks will continue? If so what is the trend you see one month from now and if not whether we should get out of stocks currently held by us?
[05:00:43 PM] => Paresh Khandwala : It depends on the stocks u are holding. Since Market is going to remain volatile exit and entry level is going to be imperative considering various factors
[05:03:29 PM] => Bimal Gala-Mr.Paresh, how do u see the equities reacting to the gloomy economic industrial growth of below 1 %. have the market already factored the situation?
[05:04:24 PM] => Mr. Paresh Khandwala: I believe this aspect is more or less priced into the stocks and markets. Only if any further global meltdown occurs, then Indian markets would be affected as well. In real terms, as stated above there will be more sectoral plays, where quality prevails, particularly management
[05:10:48 PM] => Janki - Can One actually trust Research reports brought out by various broking houses ?
[05:11:26 PM] => Mr. Paresh Khandwala: Yes, one should depend on such reports. But, the user needs to track the assumptions/ projections. If going drastically wrong, then stop following. Markets move on various other factors and not just research.
[05:20:14 PM] => Linus - If one had a potful of money what basket of scrips would you suggest to him so that he may retire without any headaches
[05:22:35 PM] => Mr. Paresh Khandwala: Go for more secured financial instruments in case you are looking for safety and return. I propose the following stocks for your investments, but you need to ascertain further on your risk return profile. High dividend paying scrips like IDBI (15%), RIL (10%), RPL (5%), IOC (5%), VSNL (7%), HFCL (3%), Wipro (5%), Satyam (5%), DSQ Software (5%), Gujarat Ambuja (5%), Jaiprakash industries (5%), Dr. Reddy (5%), Cipla (5%), Aurobindo Pharma (5%) and 15% as cash in the portfolio
[05:24:05 PM] => Janki K : Between 1992 and 2001 the sensex has actually fallen. why should anyone invest in stocks at all. Is it better to be a trader?
[05:30:04 PM] => Mr. Paresh Khandwala: Yes, given our markets one should put a stop loss and stop gain, instead of being greedy or hopeful. It is therefore important to know the cycles of various sectors and stocks within them
[05:34:00 PM] => Aspirin4u - Why is it that stocks of Financial services businesses in India, including reputed names like Birla Global, Kotak and even yours perform so pathetically? Are these businesses/managements actually as bad as the market makes them out to be?
[05:34:33 PM] => Mr. Paresh Khandwala: Somehow, Indian investors have never recognised financial services industry as a sector that merits investment due to prudential investment guidelines by mutual funds and other financial institutions, who are also in similar line of business directly or indirectly. However, for your information the market capitalisation is between 10 to 15 times of their earnings in USA for many financial companies. On businesses and managments, you would be the best judge.
[05:40:07 PM] => Shivani : Wipro has not announced a profit warning. do u still expect to grow at over 100%
[05:41:12 PM] => Paresh Khandwala : It will out perform the Industry . may not grw by 100% but definetly between 60-70%
[05:42:00 PM] => Rajesh - Have gone thru some of the research reports provided by your researchers on myiris and it all seems to be research on speculative stocks stating all buys on DSQ, Silverline, Sterlite Optical. In your opinion on hindsight does it make sense to look at such stock or fundamentally sound Glaxo, Hll, Reliance, HPCL, BPCL, Tata Chemicals etc. Or is it a matter of convinience to recommend the flavor of the month - your comments
[05:42:47 PM] => Mr. Paresh Khandwala: One needs to understand my request to go through our reports more carefully at myiris. We have not gone wrong on the earnings forecasts. However, having considered such stocks as investment worthy in good times, one should not write-off their ability to generate profits in coming years. Looking at the basket of portfolio on the basis of sector, company and management, one needs to evaluate whether the scrips that you mentioned deserve investment at this point of time. Investments options are always subject to individual needs, taking into account the risk and investment horizon.
[05:48:17 PM] => Neha-dk - Do you see the current rally as a relief rally or is it based on fundamentals
[05:48:51 PM] => Mr. Paresh Khandwala: Yes. However, I expect big capital to flow in the next two quarters in our markets. Grab opportunity on value stocks with medium term perspective.
[05:55:18 PM] => Gopi05 - Paresh, which according to you are the safest, excellent and profitable form of short term investment at this period of time?
[05:55:43 PM] => Mr. Paresh Khandwala: Invest in stocks like Indo Gulf Corporation, German Remedies, IDBI and Tata Tea
[05:59:21 PM] => Surendra Kapur :Do u use technical analysis. how do u rate it vis avis fundamental analysis
[06:00:48 PM] => Mr. Paresh Khandwala:10% Technical and 90% fundamental analysis is what i would recommend to a medium term investor.
[06:02:02 PM] => Prashant Mahesh - What is the future of e-broking in a ocuntry like India where internet connectioin is so slow ?
[06:02:40 PM] => Mr. Paresh Khandwala: the internet infrastructure has to improve significantly to make investments more economical for brokers and also affordable for investors at remote locations over the medium term. We see tremendous opportunity for investors to come through this mode, but expect this to happen over the next three year.
[06:06:11 PM] => Kamalarangan - NAME THE THREE IMPORTANT PARAMETERS AN INVESTOR
[06:06:36 PM] => Mr. Paresh Khandwala: Growth, Value and Mangement. Sincere advice will be to play with a zero cost concept. Sell in parts to recover costs. Do not regret on booking profits rather than making losses.
[06:10:37 PM] => TNBalaji:Please give one good pick each from the pharma and fmcg sector
[06:12:38 PM] => Mr.Paresh Kh:andwala :aurbindo pharma and itc would be good picks .
[06:12:56 PM] => Ankitu98 - where do you see the IT stocks and BSE sensex by SEPT 2001
[06:13:28 PM] => Mr. Paresh Khandwala: We are optimistic on the markets in the next six months. We see Sensex to stabilise at 4500 levels by September 2001. IT stocks will be market outperformers. But action will only be in front line and outperforming companies
[06:13:38 PM] => tnbalaji : is Reliance Petro a good pick at 50
[06:15:10 PM] => Mr. Paresh Khandwala : RPL is a good pick from a medium term to long term perspective at theses levels or maybe 5 rupees less
[06:18:49 PM] => IRIS : THANK YOU VIEWERS FOR AN OVERWHELMING RESPONSE AND A SPECIAL THANKS TO MR. PARESH KHANDWALA for sparing the time to be with us for such an informative chat .
[06:20:09 PM] => IRIS : THANK YOU ONCE AGAIN MR. KHANDWALA - Given the response we shall definitely want you back once again
[06:20:35 PM] => IRIS : THE CHAT IS NOW OFFICIALLY CLOSED
[06:21:31 PM] => IRIS : KINDLY COME BACK ON MONDAY APRIL 23, 2001 TO SPEAK WITH MR. NILESH SHAH - CIO Templeton AMC