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Stock/sector picks
Information Technology: Dhawan feels even if Rolta, in mid-cap IT stocks, correct, there will be a lot of fresh money coming into it. “We have a buy call for traders and investors on the stock.” Geodesic as well has had a pretty decent run-up, according to him. The frontline sector, Dhawan says, has had a good run-up. But, if the market corrects, one will see these sectors coming off probable pretty sharply with investors looking to take profits. “You have to stick to TCS and Infosys,” he advices.
“If there is a correction then obviously look at the frontline but if you are looking at fresh money then I think you have to pay on slightly higher beta and high risk stocks which will be the midcap IT stocks,” he adds.
Orchid: Dalal feels there are three things that are putting pressure on the stock—(1) there was a sell off of one of the major shareholders and obviously they would be best judges of this kind of action taken by the company whether it’s good or bad for the future (2) the company sold off a major business so the growth potential of the company is definitely in question over here and (3) its not the best pharmaceutical company in the midcap space to perhaps invest in. “So, given that it does not have the same kind of management support that it could have had, it’s not something that necessarily one should have to look at and that’s why maybe there is some institutional divestment taking place in the stock.”
DLF: Dalal believes that the biggest mistake the company has made is restructuring itself. “Companies should perhaps structure themselves in a manner in which it appeals not only to them but even to the investors and quite easily so. Also I think that you create some kind of a question mark when you have benefit coming to unlisted companies in such a restructuring.”
Sugar: “I would buy sugar,” says Dalal. “I think that sugar is in for shortage period going forward and there is going to be perhaps even higher sugar prices in time to come. Also the political resistance to increase in price of sugar as a commodity for the people is going down because there is food inflation taking place across. So I would remain positive on sugar for the next year.”
Stock/sector picks
Information Technology: Dhawan feels even if Rolta, in mid-cap IT stocks, correct, there will be a lot of fresh money coming into it. “We have a buy call for traders and investors on the stock.” Geodesic as well has had a pretty decent run-up, according to him. The frontline sector, Dhawan says, has had a good run-up. But, if the market corrects, one will see these sectors coming off probable pretty sharply with investors looking to take profits. “You have to stick to TCS and Infosys,” he advices.
“If there is a correction then obviously look at the frontline but if you are looking at fresh money then I think you have to pay on slightly higher beta and high risk stocks which will be the midcap IT stocks,” he adds.
Orchid: Dalal feels there are three things that are putting pressure on the stock—(1) there was a sell off of one of the major shareholders and obviously they would be best judges of this kind of action taken by the company whether it’s good or bad for the future (2) the company sold off a major business so the growth potential of the company is definitely in question over here and (3) its not the best pharmaceutical company in the midcap space to perhaps invest in. “So, given that it does not have the same kind of management support that it could have had, it’s not something that necessarily one should have to look at and that’s why maybe there is some institutional divestment taking place in the stock.”
DLF: Dalal believes that the biggest mistake the company has made is restructuring itself. “Companies should perhaps structure themselves in a manner in which it appeals not only to them but even to the investors and quite easily so. Also I think that you create some kind of a question mark when you have benefit coming to unlisted companies in such a restructuring.”
Sugar: “I would buy sugar,” says Dalal. “I think that sugar is in for shortage period going forward and there is going to be perhaps even higher sugar prices in time to come. Also the political resistance to increase in price of sugar as a commodity for the people is going down because there is food inflation taking place across. So I would remain positive on sugar for the next year.”
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