Realty stocks witness renewed interest
The Hindu Business Line, May 22, 2009, Page 10
Broking firms upgrade realty majors.
Our Bureau, Mumbai
As things start to look better for the economy and capital markets, brokers’ outlook for real estate sector stocks have also taken a positive turn.
The BSE realty index surged 40.89 per cent in the last week as against 15.7 per cent rise in the Sensex.
These scrips are also among the most traded.
While most of the index heavyweights in the Sensex such as Reliance, L&T, SBI and ICICI Bank saw a two-week average traded quantity between 9.5 lakh and 36.3 lakh shares; DLF’s two-week average traded quantity was 2.29 crore shares, while Unitech saw an average of 2.2 crore.
On the NSE, DLF and Unitech figured in the most traded list on Thursday. A total of 6.7 crore Unitech shares exchanged hands today and 2.05 crore of DLF.
Marketmen said that realty stocks were among the most beaten down in the market fall.
Good recovery
“From their peak, the values of the realty stocks have fallen by 95 per cent and from the lows these stocks have recovered quiet well,” said Mr Vishal Goenka, Chief Executive Officer at Kantilal Chhaganlal Securities. “People might feel that the corrections in these stocks were over done and there could not be much downside from here on,” Mr Goenka said.
Marketmen also attributed the rise in realty stocks to a string of good news that has come for the realty sector.
QIP placements
“The successful qualified institutional placements (Unitech) and stake sales of some key real estate companies (DLF) have led to investors thronging to these counters,” said an official with a US-based investment bank.
“These are very liquid counters and are also very high beta stocks, and with the markets all pepped up these are the stocks which will see major action ,” said Mr Hardeep Dayal, Managing Director at Centrum Realty and Infrastructure.
Broking firms have become positive towards the realty stocks now.
Macquarie had recently upgraded its rating on DLF from “Underperform to Neutral”.
“DLF has now come out of ‘the boy who cried wolf’ phase with this capital raising. The de-leveraging story is clearly under way. From an operating cash flow perspective, initial signs are encouraging,” stated the report.
Enam Securities has upgraded Unitech and HDIL from “Underperformer to Neutral”.
Indiabulls Real Estate and DLF are among the real estate scrips on Motilal Oswal’s “Buy” lists.
The Hindu Business Line, May 22, 2009, Page 10
Broking firms upgrade realty majors.
Our Bureau, Mumbai
As things start to look better for the economy and capital markets, brokers’ outlook for real estate sector stocks have also taken a positive turn.
The BSE realty index surged 40.89 per cent in the last week as against 15.7 per cent rise in the Sensex.
These scrips are also among the most traded.
While most of the index heavyweights in the Sensex such as Reliance, L&T, SBI and ICICI Bank saw a two-week average traded quantity between 9.5 lakh and 36.3 lakh shares; DLF’s two-week average traded quantity was 2.29 crore shares, while Unitech saw an average of 2.2 crore.
On the NSE, DLF and Unitech figured in the most traded list on Thursday. A total of 6.7 crore Unitech shares exchanged hands today and 2.05 crore of DLF.
Marketmen said that realty stocks were among the most beaten down in the market fall.
Good recovery
“From their peak, the values of the realty stocks have fallen by 95 per cent and from the lows these stocks have recovered quiet well,” said Mr Vishal Goenka, Chief Executive Officer at Kantilal Chhaganlal Securities. “People might feel that the corrections in these stocks were over done and there could not be much downside from here on,” Mr Goenka said.
Marketmen also attributed the rise in realty stocks to a string of good news that has come for the realty sector.
QIP placements
“The successful qualified institutional placements (Unitech) and stake sales of some key real estate companies (DLF) have led to investors thronging to these counters,” said an official with a US-based investment bank.
“These are very liquid counters and are also very high beta stocks, and with the markets all pepped up these are the stocks which will see major action ,” said Mr Hardeep Dayal, Managing Director at Centrum Realty and Infrastructure.
Broking firms have become positive towards the realty stocks now.
Macquarie had recently upgraded its rating on DLF from “Underperform to Neutral”.
“DLF has now come out of ‘the boy who cried wolf’ phase with this capital raising. The de-leveraging story is clearly under way. From an operating cash flow perspective, initial signs are encouraging,” stated the report.
Enam Securities has upgraded Unitech and HDIL from “Underperformer to Neutral”.
Indiabulls Real Estate and DLF are among the real estate scrips on Motilal Oswal’s “Buy” lists.
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