Auto and realty stocks staged a smart recovery on Wednesday on anticipation of a stimulus plan that the government could announce.
Auto and realty stocks staged a smart recovery on Wednesday on anticipation of a stimulus plan that the government could announce. The BSE Realty and BSE Auto indices gained by 4.45% and 3.51% respectively on Wednesday. Both the indices registered their biggest single-day gain in the last four months.
Auto stocks saw gains after reports that government is working on scrappage policy for two-wheelers, while markets are anticipating some relief measures for realty sector by the government. Deven Choksey, managing director of KR Choksey Investment Managers, said, “Government is planning to come out with scrappage policy for auto sector, and if this policy is introduced then it will generate new demand in the system which is good for auto sector. Even for real estate, I think some policy is ready to be rolled out by the government which has helped the markets.”
BSE Auto index on Wednesday ended the day at 16,665.83 points up by 565.52 points,while BSE Realty went up by 87.42 points to end the day at 2049.87 points. All the 16 stocks in BSE Auto index ended the day in green with Tata Motors and Eicher Motors gaining by 10.21% and 4.98% respectively. While in BSE Realty index, nine out of ten stocks ended the day in gains. Oberoi Realty went up by 10.21% followed by Godrej Properties, up 6.84% on Wednesday.
The largest developer by market capitalisation, DLF, gained by 4.02%. Market participants say that, some of the stocks are beaten down and currently available at attractive valuations.