Real-estate stocks see sharp rally on strong launch pipeline

MUMBAI: After two days of decline, Nifty on Wednesday regained strength and closed with gains of 141 points (+0.7 per cent) at 21,659 levels, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

The broader market outperformed with the Nifty Midcap 100 and Nifty Smallcap 100 up 1 per cent.

All sectors ended in green with realty, PSU bank, and financials being the top gainers. Real-estate saw a sharp rally of 6 per cent on the back of strong launch pipeline, Khemka said.

Niche sectors like defence, power finance, and hotels were too in the limelight. Impressive quarterly business updates from financial heavyweights lifted the domestic equities Thursday, despite weak global cues.

"Overall, the market showed strong resilience on Thursday, which is likely to strengthen further as we head into the results season and more companies announce their business updates," Khemka said.

Nifty Realty was the sector which outperformed on Thursday, up by 6.76 per cent.

Expectations of robust pre-sale figures in real-estate companies fueled optimism in the sector, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

Most of the banks and PSU banks were up on Thursday, because of the robust guidance reported by IndusInd Bank, Central Bank and Ujjivan Small Finance bank.

Bajaj Finance, NTPC, ONGC, Tata Consumer and IndusInd Bank were among the top gainers on the Nifty, while the losers included BPCL, LTIMindtree, Dr Reddy's Laboratories, HCL Technologies and Hero MotoCorp.