Domestic Indices Continue With Upward Trend
Trends such as robust pent-up demand, change in consumer preference and low housing loan rates are expected to continue the rally in real estate stocks in the coming months.
The Indian stock markets witnessed a sell-off in the first half of the fortnight on the back of weak global cues. However, a better-thanexpected Q1FY22 earnings’ season helped frontline benchmark indices Sensex and Nifty rebound and end the fortnight on a strong note with gains of 1.13 per cent and 1.06 per cent, respectively. IPOs of G R Infraprojects, Clean Science and the highly coveted food delivery start-up Zomato debuted on the bourses during the fortnight, furnishing phenomenal listing day gains of 108.7 per cent, 76.13 per cent and 65.59 per cent, respectively.
The Small-Cap index jumped 2.13 per cent and outperformed the benchmark by a wide margin. The Mid-Cap index also rose 0.91 per cent but failed to outperform the broader market indices. The Realty index soared like an eagle, gaining 9.44 per cent to touch a 10-year high during the fortnight. Indiabulls Real Estate rallied 41 per cent followed by Prestige Estates and Mahindra Lifespace Developers which climbed by 17 per cent each. Trends such as robust pent-up demand, change in consumer preference and low housing loan rates are expected to continue the rally in real estate stocks in the coming months.
Better-than-expected Q1FY22 earnings’ season helped frontline benchmark indices Sensex and Nifty rebound.
The IT index increased 3.22 per cent and closed at 30,577.60. IT behemoths Infosys, TCS and Wipro announced a decent set of Q1FY22 earnings’ results during the fortnight. Infosys and TCS experienced YoY revenue growth of 17.9 per cent and 18.5 per cent, respectively. Wipro reported its best-ever quarterly performance in history. Bankex index rose by 0.41 per cent, underperforming the frontline indices. The country’s largest private sector lender, HDFC Bank, reported lower than expected performance for Q1FY22 as provisions ballooned and the asset quality deteriorated.
On the contrary, ICICI Bank and Axis Bank saw YoY growth in standalone net profit of 78 per cent and 94 per cent, respectively. Metal and Healthcare indices persevered their upward trend, gaining 2.13 per cent and 1.75 per cent, respectively. The defensive FMCG index gained 0.46 per cent whereas the Power index ended in red losing 0.73 per cent during the fortnight. The Auto index was under pressure and tumbled 1.96 per cent. Trading data shows that FIIs were net sellers to the tune of Rs 5,608.69 crore while DIIs were net buyers to the tune of Rs 5,260.35 crore during the fortnight.
