Real Estate Stocks Continue To Outperform
Inflation worries, stretched valuations, rising corona virus cases and the fear of rising interest rates are the factors keeping the bulls on tenterhooks.
The Indian key benchmark index gained more than 1 per cent in the past couple of weeks even as realty stocks continue to catch investors’ attention. BSE Realty index is the top performing sectoral index in the past couple of weeks, gaining by ~9 per cent. We have BSE Power index soaring by ~6 per cent. The broader markets outperformed the key benchmark indices with BSE Mid-Cap index gaining by 4.49 per cent and BSE Small-Cap index soaring by nearly 4 per cent. Investors finally could find some value in the automotive and automotive ancillary stocks as is reflected by the marketbeating performance of the BSE Auto index.
The BSE Auto index is up by over 4 per cent in the past couple of weeks. The shares of TVS Motors zoomed by more than 17 per cent in the past couple of weeks owing to the positive set of results and also due to the strategic development on the electric vehicle vehicle front. The shares of Minda Industries were seen trending higher, trading with a price volume breakout after declaring better than the estimate earnings. The defensives were in action with the BSE IT index gaining 3.87 per cent.
The shares of Tata Elxsi, Infosys, Presistent Systems, Mind Tree and Tech Mahindra were seen outperforming the markets in the past couple of weeks. The dollar made a six-month high and is seen as positive for the IT stocks. The FMCG index was seen outperforming after a long time. Some value buying is seen in the FMCG stocks in the past couple of weeks. The underperformance came from banking stocks and from the healthcare stocks. Globally, the US markets were seen trading at record highs with participation from IT stocks remaining healthy. Inflation worries, stretched valuations, rising corona virus cases and the fear of rising interest rates are the factors keeping the bulls on tenterhooks.
That said, the positive comments from the US Federal Reserve on economic recovery and better than estimated results declaration may help the global equity rally remain intact. The earnings so far this season have been healthy, reflecting more than positive performance from corporate India. Especially so, the earnings from metal companies have surprised the street. Tata Steel and SAIL, in particular, have reported better than estimate earnings along with Hindalco. From the healthcare mid-cap space Aster DM Healthcare, Apollo Hospitals and Narayana Hrudalaya declared outstanding set of results.
Meanwhile, from the logistics sector we have had Allcargo Logistics declaring an outstanding set of results. The broking companies also were seen reporting excellent set of numbers, thus supporting the share prices. The FIIs turned out to be net sellers in the markets while the DIIs were net buyers. FIIs sold shares worth Rs 10,709.71 crore while DIIs bought shares worth Rs 9,438.91 crore. Going ahead, the RBI comment and global market cues can be expected to decide the market trends.