Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Banks and realty stocks aid upmove
Wed, 2 Dec 12:30 pm

Strong buying activity in index heavyweights helped the benchmark indices gather momentum in the previous two hours of trade. Buying interest is particularly seen in stocks from realty and banking sectors. However, stocks from FMCG and IT sectors have failed to elicit sufficient investor interest.

The BSE Sensex and the NSE Nifty are currently trading higher by around 70 points and 18 points respectively. Stocks from the midcap and smallcap space are also trading in the positive with the BSE MidCap and the BSE SmallCap indices trading higher by 1.1% and 1.0% respectively.

Stocks from the financial sector continue to trade firm lead by IDFC, PFC and HDFC. HDFC, the largest mortgage lending entity in the country has announced a dual rate home loan scheme. Under the scheme, a borrower will be charged a fixed rate of interest upto March 2012 and a floating rate thereafter. This offer is applicable to all new home loan customers who apply before January 31, 2010, and take at least part disbursement before March 31, 2010.

This scheme is expected to help HDFC regain its market share which it had been losing in the last one year. At the same time, we believe that the housing finance company's margins may take a hit in the medium term. Particularly so, because the institution's cost of funds may go up in the near term as it does not have low cost deposits like banks.

The BSE FMCG index has been trading in the red since the start of the session today. The index has been weighed down by heavyweights like ITC and HUL. According to a leading daily, P&G will be launching a mass market detergent this week. This bodes ill for HUL. The latter has been steadily losing market share in this category to regional players and with P&G entering this category, competition is likely to heat up. Moreover, P&G will be launching a mid premium brand fairness cream priced at the same level as HUL's Ponds portfolio.

With P&G getting aggressive, HUL is expected to step up its advertisement and promotion spending for brand building. Given the history of price wars between P&G and HUL, we believe that this is likely to hurt HUL's profitability.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Banks and realty stocks aid upmove". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.