Midcap realty cos surge on speculative buying
Midcap realty stocks staged a strong comeback Friday sending the BSE Realty Index up nearly 6 per cent after being badly beaten in the recent sessions.
By ET Bureau |
MUMBAI: Midcap realty stocks staged a strong comeback Friday sending the BSE Realty Index up nearly 6 per cent after being badly beaten in the recent sessions. Expectations of a strong stimulus package to the realty sector in the interim budget also lifted sentiment.
"The spike is clearly because of the oversold position that these stocks are in at the moment. Stocks like Akruti City and others are seeing speculative buying. However, we suggest the sector as a whole should be avoided as the outlook seems grim. Instead, one should opt for more fundamentally strong sectors like banking and oil &gas," said Rajesh Satpute, research analyst at Anand Rathi Securities.
Incidentally, Akruti City, along with 150 other private companies, is under the scanner of the Registrar of Companies. The criteria used in selecting the companies included adverse remarks by auditors on financial statements, serious and substantiated investor complaints, prima-facie violation involving non-disclosure of material facts, improper related party transactions and references from other regulators such as the Income Tax department, SEBI and the RBI.
According to a derivative analyst, fresh shorts were being created at higher levels in Orbit Corporation while traders were squaring off long positions in Ansal Infrastructure.
At 11:30 am, Ansal Infrastructure (24.04%), DLF (4.05%), Orbit Corporation (43.63%), Parsvnath Developers (19.51%) and Peninsula Land (10.61%) and Akruti City (1%) were the biggest gainers in the realty space.
"The spike is clearly because of the oversold position that these stocks are in at the moment. Stocks like Akruti City and others are seeing speculative buying. However, we suggest the sector as a whole should be avoided as the outlook seems grim. Instead, one should opt for more fundamentally strong sectors like banking and oil &gas," said Rajesh Satpute, research analyst at Anand Rathi Securities.
Incidentally, Akruti City, along with 150 other private companies, is under the scanner of the Registrar of Companies. The criteria used in selecting the companies included adverse remarks by auditors on financial statements, serious and substantiated investor complaints, prima-facie violation involving non-disclosure of material facts, improper related party transactions and references from other regulators such as the Income Tax department, SEBI and the RBI.
According to a derivative analyst, fresh shorts were being created at higher levels in Orbit Corporation while traders were squaring off long positions in Ansal Infrastructure.
At 11:30 am, Ansal Infrastructure (24.04%), DLF (4.05%), Orbit Corporation (43.63%), Parsvnath Developers (19.51%) and Peninsula Land (10.61%) and Akruti City (1%) were the biggest gainers in the realty space.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
