A positive outlook towards Real Estate Sector

“The thrust on infrastructure is indeed a positive move, especially the initiatives like setting up of 5 new smart cities, allocation of more funds towards transportation and warehousing, setting up of economic corridor etc will all have a positive impact on the building material industry. The proposal to set up 100 new airports by 2024, tax holiday for developers for affordable housing projects, bring in a new income tax regime, proposals to address the liquidity constraints faced by the NBFC and the simplification of GST will also give the industry the much needed boost. Though a progressive budget the building material industry would have benefitted extensively if the budget had granted infrastructure status to the entire real estate sector and helped the industry to experience an accelerated growth.”

“Allocation of 103 lakh crore for infrastructure is a welcome and much needed move by the government. Infusion of funds into infrastructure will surely boost employment in the country which is required to accelerate today’s economy. Covering 6500 projects across 18 states and union territories will also help in improving housing real estate sector.”

Investment of INR 16 lakh crores will definitely boost up market sentiments towards affordable housing. Allocation of Rs 3.6 lakh crore towards piped water supply to households and along with the vision for five new smart cities will invariably help in building consumer faith towards affordable housing. The government needs to focus on the proper implementation and de-centralization of the funds for a holistic real estate development. Affordable housing needs exclusive attention from the government and developers today as it is one the key building blocks in today’s real estate”

Comments Section

  • - Mazhar Mohammad, Chartviewindia 04/01/2020Reply

    Intraday traders can look to go long if Nifty sustains above the 12,300 level for more than 30 minutes on Friday and look for a target of 12,390. Contrary to this, a strong close below 12,168 level may lead to weakness in Nifty

    • - Gaurav Ratnaparkhi, Sharekhan 04/01/2020Reply

      Nifty is now a stone’s throw away from its all-time high of 12,293. Structurally, it has climbed towards the upper end of the consolidation range i.e. 12,300. Once the 12,300 level taken out, it will march towards 12,350 and subsequently to 12,400, which is near the rising trendline and daily upper Bollinger Band. The 12,220-12,200 zone will act as immediate support

  • - Ashwin Patil, Senior Research Analyst 04/01/2020Reply

    Among two-wheelers, we prefer Hero MotoCorp as it is a proxy to the economy and rural growth, and an expected good Rabi crop output will drive sales in rural India (55% of volumes). We also like Bajaj Auto, which is now finding good traction in exports markets. On the PVs, we still like Maruti as it is a market leader in PV segment and has a wide array of models in all the segments. Its strength in the rural markets is also its positive. We also like M&M, as robust Rabi crop output and increased MSPs will trigger UVs as well as FES growth. Within the CV space we like Ashok Leyland which is away from any global headwinds. Any news on scrappage policy may lead to a sudden spur in CV stocks

    • - Chandan Taparia 04/01/2020Reply

      Nifty has been consolidating between 12,118 and 12,293 levels since last 11 sessions and now a decisive range breakout with followup action can drive the fresh leg of rally. The index has to continue to hold above 12,250 level to witness an up-move towards the 12,350-12,400 zone, while key support has shifted to 12,150 level

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