Indian stock market indices traded flat over the last two hours of trade. IT and FMCG stocks witnessed maximum selling pressure, while realty and consumer durables stocks witnessed maximum buying interest.
Real estate stocks are trading strong. DLF Ltd. and Sunteck Realty are the biggest gainers, while DB Realty and Phoenix Mills are the biggest losers. According to a leading financial daily, DLF Limited has sold its 28 acre of prime land in Gurgaon to real estate firm M3M for Rs 4.4 bn. The company has been selling its non-core assets such as hotel plots since the last couple of years to cut debt. It had raised Rs 3.4 bn from the sale of non-core assets till the second quarter of this fiscal. They plan is to raise a total of Rs 100 bn from this process over the next few years. The company is also in the process of selling its hospitality venture Amanresorts, which it had acquired in 2007.
Auto stocks are trading strong led by Escorts and Maharashtra Scooters. According to a leading financial daily, the Indian automobile industry is likely to report a lackluster performance this financial year. This is in contrast to the 26%-30% growth rates recorded in the previous two years. At the start of the year, Society of Indian Automobile Manufacturers (SIAM) had forecasted a growth of 14%-16% for the year but recently this has been cut drastically to only 0%-2%. However, things could get better in FY13 on account of over 50 new launches in the Auto Expo and some favorable initiatives from the government. Also, there has been some revival in the industry recently with car sales recording a growth for the second consecutive month as a result of discounts and freebies.