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  • G.Chokkalingam - Founder & Managing Director, Equinomics Research & Advisory

    G.Chokkalingam

    Founder & Managing Director, Equinomics Research & Advisory

    DATE: December 05, 2016, 01:00 PM

    SUBJECT: Portfolio strategy and market outlook for December

    MARKETS

CHAT CLOSED. READ TRANSCRIPT BELOW

  • MODERATOR:

    Hello and welcome to the chat with G Chokkalingam, founder & managing director, Equinomics Research on portfolio strategy and market outlook for December


    G.CHOKKALINGAM:

    Hello everyone


  • A

    ASHWINI

    Hello sir, Please share your views on investing in mid-and-small cap funds for the next 5 years.

    G.CHOKKALINGAM

    You may invest for 5 years, but you need to monitor regularly in the midcap space performance at least once in a quarter. You need to keep in mind the fact that roughly every alternate year the outperformance of large cap vs mid cap indices keep changing. i dont track the mutual funds. if you have any direct question on mid cap segment or stocks then i can answer


  • D

    DEEPAK

    FIIs have been net sellers for November and looks they will continue in December, too. In such a scenario, markets will see a downward trend. Is it advisable to sell now and look for opportunities at lower levels? What are your views on this & the India story?

    G.CHOKKALINGAM

    If you are a trader yes you may sell and sit on cash. when core sector growth numbers and corporate earnings start coming in during the mid January, the market participants may become nervous and hence, there is a possibility of another 3% correction in the broad indices. However, if you are a value investor, i suggest you use such falls to add stocks. i expect the market to come back to robust performance after Feb


  • A

    ANOOP

    Should we expect another market correction in the immediate future? I have one stock specific question on Sunil Hitech Engineering, which recently had a stock split. What is your short-and-long term view on the stock?

    G.CHOKKALINGAM

    as i mentioned earlier market will continue to be volatile with downward bias only - it may fall 3% by mid Jan. i will try to come back on Suni Hitech


  • B

    BANSHI LAL SRIVASTAVA

    I am trying to build a portfolio and purchased shares of various companies, but obviously in small quantities - almost 150 shares. I also prefer large-cap companies which give bonus. What are your views on this? Secondly, should I accumulate shares right now?

    G.CHOKKALINGAM

    . Bonus per se shouldnt attract the investors - history amply proves the point that rise in the equity capital through bonus shares should be outperformed by the rise in profits quite consistently over the years - such stocks create a lot of wealth in the long term


  • R

    RAJENDRAN V.T

    I have following loss making scrips. Please advise the future course of action 1. BHEL : 210 shares at Rs 304. 2. IDBI Bank: 200 shares at Rs 77. 3. IFCI : 100 nos at Rs 53.

    G.CHOKKALINGAM

    i would not hold IFCI - rest you may hold. i believe they have chance to rise in 12 to 18 months significantly


  • A

    ASHA

    Are markets under-pricing the Italian referendum risk in your view?

    G.CHOKKALINGAM

    no need to panic on Italy referundum - pl remeber that GDP of UK or Italy are not dropping from the Global GDP pie - they may decide grow on their own in isolation. Theories of economics which argued about decentralization encouraging the growth are silent now - at least Indian markets will forget soon Italy referendum also like Brexit or Greece fear in the past


  • A

    ANIL SAHNI

    How long, uncertainty in the market, will continue? Till March 2017? Or more?

    G.CHOKKALINGAM

    Till jan end i believe


  • R

    RAJ EVARIS

    Sir, Kindly give five midcaps which can be bought now after demonetisation

    G.CHOKKALINGAM

    we are buying even today stocks like MOIL, Andhra sugar (sugar revenue is only around 20% of total turnover, rest chemicals and others), Tata Sponge, M&M, SML- Isuzu, MRF below Rs.49000, Bombay Burmah around Rs.500, JB Chemcials, L&T Infotec - among these stocks we personally hold JB Chemicals, MRF and MOIL


  • K

    K KAMAKSHI

    Amidst the disruption to business caused by demonetisation, sharp depreciation of Indian rupee, FII outflows, strengthening US dollar and the spike in oil and natural gas prices, where do you see Nifty in next 1,3,6 and 12 months. Which sectors are relatively resilient and which are more vulnerable?

    G.CHOKKALINGAM

    By next dec 2017 i see broad indices gaining at least 15% - mkt would come back to normal from march onwards. minimum rs1.5 lakh crore gain should happen to rbi and therefore, the govt should get at least Rs.1 lakh cr of dividend for FY2017 (june ending from RBI). I believe oil not spike again - US has broken some record in oil & gas exports. It would try to pull down the oil prices. i would focus on banks with least NPA, Indigo in aviation and automobile stocks (not most components which have spurted over 100% to 200% in the last 6 months)


  • S

    SANKARAMANI

    You please let me know future prospects of Mayur Uniquoters? What could be the target price?

    G.CHOKKALINGAM

    i would sell this stock even at cmp - i am not comfortable in paying around 19 pe for FY17 for such mid cap stocks - No big growth in the current year, so in my view it doesnt deserve such valuation. one may sell on any recovery


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