Goodwill Investors’ Education initiative Goodwill’s Eagle Eyes!

Goodwill Investors’ Education initiative Goodwill’s Eagle Eyes!

Auto Sector shows promise:  Watch Ashok Leyland, M&M, Maruti Suzuki top picks: Analysts. Gold slides:

Even in a market that has been cooling off, auto stocks are still buzzing. To talk about sales expectations in the current month, the demand-supply situation in the sector and their top picks from the space, Analyst  expects the incoming monthly numbers to be weak. “In the last 8-10 days we had the Shraddha Paksha (Pitru Paksha), which is considered quite inauspicious, and also last year’s base in September is high due to pent-up demand,” he said.

Issues related to demand in the two-wheeler segment and supply of passenger vehicles continue, he added.

Stock Picks

Maruti Suzuki within the passenger vehicle segment, followed by Mahindra & Mahindra. From the two-wheelers segment, though demand does not look strong at this stage, he likes Bajaj Auto because of the company’s strength and resilience on the exports front. From the commercial vehicles segment, he prefers Ashok Leyland to Tata Motors. The Tata Group stock is definitely having multiple levers that may pull it down anytime, he said.

Shah remains very bullish on commercial vehicles. The base in this segment is low and pent-up demand strong, aided by indicators such as GST collections and e-way bills, which are favouring economic improvement, he said.

Shah’s top picks within the auto pack are Ashok Leyland, Bharat Forge and Ramkrishna Forging.

Gold Price Today Drops Below Rs 46,000-mark, Over Rs 10,200 Cheaper than Record High.

Gold price in India dropped below Rs 46,000-mark on Tuesday. Gold price remained under pressure since last week despite an unchanged monetary policy by the US Federal Reserve. On the Multi-Commodity Exchange (MCX), October gold price tanked 0.24 per cent to Rs 45,960 per 10 grams at 1115 hours on September 28. Silver continued to dip on Tuesday. The precious metal price slumped 45 per cent to Rs 60,361 per kg. In the international marker gold price eased on Tuesday. Spot gold fell 0.1 per cent to $1,748.01 per ounce by 0115 GMT. US gold futures were down 0.3 per cent to $1,747.50. The 10-year US Treasury yields climbed to their highest level in three months. The dollar index was up 0.1 per cent.

US Federal Reserve officials stated that tightening of the monetary policy depends on the steady expansion in the US labor market. Investors are expected to have a keen eye on the US employment data for September 21 for more cues on the central bank’s monetary policy shift, believed analysts.

For market update, peruse www.gwcindia.in blog daily.

Realty stocks in limelight..Will Move up in the near future?

Real estate stocks have been in the limelight as analysts pin hopes of a pickup in the sector in view of the upcoming festive season. Experts say low interest rates around the globe and a recovery in demand for housing are likely to support the property market going forward.

Lower interest rates across the globe to support economies against the pandemic remains a key positive for real estate.

Analysts remain bullish on India, believes the current boom in global realty can be attributed to low interest rates. “We are not in real estate due to leverage,” he said.

A realty boom has been witnessed in the US and China, but investors need to be very careful at the current home prices globally.

Some experts say the real estate sector has consolidated for the past many years and looks due for growth.

Veteran fund manager Madhusudan Kela believes India is still in early deals of a bull market as far as real estate is concerned.

“Even though stock prices have gone up a lot from the lows. If you look at the real estate sector, nothing has really happened in the past 10-15 years,”

Though there has been no fundamental change for the sector in the recent past, optimism on the festive season has risen on Dalal Street.

A surge in Godrej Properties last week lifted its listed peers too after the developer said it had sold residential property worth Rs 575 crore in a single day at its luxury project in Noida.

According to Keki Mistry, CEO of mortgage lender HDFC, housing in the country is the most affordable in the past 20 years, as prices have not risen in the last few years. “A significant portion of housing demand is from first time buyers,” Mistry is of the view that structural demand for housing will always remain strong  in the country. He sees a huge scope for strong housing demand in the coming years.

Investors’ optimism on the sector is reflected in NSE’s realty index, which has scaled a series of peaks in the recent past. The Nifty Realty index tracking stocks of 10 realty developers including Godrej Properties, DLF, Sunteck and Oberoi Realty.

Analysts see low interest Rates and low inventory levels as “clear positives” for the sector.

Stock Return in one month (%) Return in three months (%) Return in six months (%)
Godrej Properties 55.1 63.1 67.2
Prestige Estate 40.6 72.5 60.5
Brigade 40.2 47.4 56.3
Oberoi 39.9 57.1 70.4
Sunteck 39.7 65.9 70.5
DLF 34.7 42.9 50.4
Sobha 33.2 73.5 80
Phenix Mills 14.9 20.7 26
Hemisphere Properties 13 -0.3 2.7
Indiabulls Real Estate 11.4 29.8 81.4

In the past one month alone, all 10 members of the index have given returns to the tune of 11-55 percent.

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