How are the Markets Looking ?
The Nifty, India’s benchmark stock index, opened with a gap up of 50 points in the first hour on the 4th of January. Contrary to market fears that the downtrend will follow through, the gains were sustained throughout the day, leading to a strong close.
Nifty Heatmap
Bajaj Finance, Bajaj Finserv, and Axis Bank were among the stocks that experienced significant increases. Additionally, FMCG stocks such as Nestle, Britannia, and Tata Consumers also showcased positive growth.
While some auto stocks, namely Maruti, Eicher Motors, and Hero Motors, experienced a slight decline, Tata Motors bucked the trend with a strong increase. The IT sector saw a dip with stocks like TCS, HCL, Tech, and Wipro witnessing a decline. However, Infosys emerged as an exception, exhibiting upward momentum.
Sectoral Overview
What caught everyone off guard was the remarkable movement in the real estate sector. The Real Estate Index soared by 6.76% in a single trading session.
PSE stocks also had a very good day at 2.05%, Public Sector Banks also gained 1%. IT, Autos and Metals were flat for the day.
Mid & Small Cap Performance
Mid caps were up from the morning first go and have been on a strong rally since, 47,300. Small Cap 250 followed the same pattern and did not look back after the morning open with a gap up and closing at 14,286.
Bank Nifty Overview
Nifty Bank is doing a very good recovery after an intermediate low that was made yesterday, the trend may continue and we may have a higher high.
Highlights – Nifty REALTY
What caught everyone off guard was the remarkable movement in the real estate sector. The Real Estate Index soared by 6.76% in a single trading session. Such a rapid and substantial increase in a sector’s daily index is a rare occurrence. The surge can be attributed to influential brokerages releasing positive recommendations for real estate stocks..
Considering the peculiarities of the Indian stock market, the impact of favorable brokerage recommendations on a specific sector becomes more pronounced. With shallow liquidity and limited supply, real estate stocks tend to be strongly influenced by recommendations from prominent market players. Consequently, stocks in the real estate sector rallied after the release of these favourable reports.
Although discussions about the potential of the real estate sector have been ongoing for some time, it appears that the brokerages have finally caught on. The endorsement from influential brokerages sparked considerable interest among investors, resulting in a significant upswing in real estate stocks. This surge proves that market sentiment can dominate all rational evaluations of a sector’s performance.
Highlights – Sobha
Let’s take a closer look at some of the real estate stocks that outperformed all expectations on the 4th of January. One of the notable gainers is Soba, which experienced a remarkable 16% increase in a single day. Impressively, this surge followed an 11% increase in the previous trading session. Overall, Soba’s stock price surged by almost 30% in just two trading sessions, further solidifying its position as a top performer.
Highlights – Purvankara
Purvankara, another prominent company in the real estate sector, witnessed substantial growth, with its stock price rising from Rs. 190 to Rs. 215.
Highlights – Macro Tech Developers
Additionally, macrotech developers like Lodha Developers also demonstrated favorable trends, with a solid 10% increase in their stock price.
Other real estate stocks, including DLF and Prestige Estates, also experienced notable gains.
Highlights – PSE Stocks
PSE stocks were also moving very rapidly. We are usually biassed by our mind to think about a particular sector’s performance but we cannot approach stocks like that. The key question to ask oneself is about what is the trend in the market and if we are following that trend. Buy things that are going up, sell things that are going down.
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