INSUBCONTINENT EXCLUSIVE:
Domestic software exporters and banking stocks have outpaced equity benchmark Sensex in terms of returns so far this financial year 2018-19
While the BSE IT index and Bankex have advanced 25 per cent and 23 per cent, respectively, the 30-pack Sensex is up 16.36 per cent for FY19
Analysts say a falling rupee, share buybacks and dividends made IT stocks more attractive in an otherwise volatile market
Bank shares gained on the back of government capital infusion in PSU players and some major IBC resolutions, which helped ease the bad loan
The Nifty Bank index crossed the 30,000 mark for the time in morning trade on Friday.
However, if one were go by analyst projections, the IT
counter is projected to slow down from here on, while banking may continue to deliver good returns and real estate stocks may see a rebound
However, public sector banks and real estate can beat the broader market
Target Investing.
On the banking front, asset quality continued to improve on a sequential basis and total gross non-performing assets
(GNPA) of the system declined 3.6 per cent QoQ in Q3FY19
market remained choppy last year amid inflated valuation, global trade worries, geopolitical tensions between India and Pakistan, Sebi
re-categorisation of mutual funds, corporate governance issues in several companies and liquidity crisis for NBFC.
But the market is looking
up fast over the past few weeks amid improving macros, benign global cues and prospects of the Modi government returning to power in the
Foreign brokerages Morgan Stanley and Goldman Sachs have gone over-weight on Indian market
Nifty at 12,500, a potential gain of over 8 per cent
The index hovered around the 11,500 mark on Friday
Morgan Stanley has projected Sensex to top the 42,000 mark by December-end.
Intense competition and profitability pressure continued to
depress the telecom sector in FY19
The BSE telecom index underperformed for the fifth straight year in a row, falling nearly 21 per cent to emerge top loser in BSE sectoral
Choice Broking anticipates modest margin expansion for the sector a sequential basis with early signs Arpu expansion and the incumbents
The brokerage has a neutral view on Airtel and is negative on Vodafone Idea.
Auto (down 20 per cent), Metals (down 15.18 per cent), Realty
(down 10 per cent), Power (down 5 per cent) and Capital Goods (down 1.80 per cent) indices are on course to end the financial year among the
sector losers in terms of returns
Centrum Broking sees no respite for the auto counter in the near term
Considering the current subdued sentiment, vehicle demand will continue to remain volatile, it said
In Q3, most FMCG majors reported double-digit volume growth, largely aided by buoyancy in rural demand.
Investors can focus on the
outlook and may remain a drag on the index
However, a few stocks from the corporate banking and industrial segments could emerge new leaders going forward.
