After subdued start, markets move higher led by gains in realty stocks. The Sensex rises 178 points to 19,697 and the Nifty rises 56 points to 5918.
Analysts advice investors to use the recent correction to beef up bargain stocks. Dipen Shah Senior Vice President – PCG Research, Kotak Securities said," this fall in markets presents an opportunity to accumulate fundamentally good stocks which have come down to reasonable levels, with FY12 in mind."
Realty shares rebound yesterday and continue their up move amid a swell of investor interest after they were battered down by 20-30% last week. DB Realty has touched upper circuit for the secon straigth session, up 5%, HDIL has risen 4.5% and Peninsula Land has climbed 4.4%.
Asian markets were dragged down by losses in resource and property developers. Overnight fall in Wall Street, geopolitical concerns from Korean peninsula and monetary tightening in China weighed on the sentiment. Hang Seng has dipped 0.4% and Shanghai Composite has lost 0.3%. China's November PMI rises to 55.2 in November from 54.7 in October, according data released by the China Federation of Logistics and Purchasing, however the data fails to the cheer the market. The Nikkei 225 is trading flat; Strait Times has dropped 0.03%. However Seoul Composite and Taiwan Weighted buck trend and are trading in the green, up 0.8% and 1.5% each.
In India besides Realty, metal stocks are also shinning in the morning session, Hindalco Industries (up 3.5%), Tata Steel (up 2.2%), and JSW Steel (up 3.5%) are pulling the metal index higher.
FMCG Stocks are dragging the markets down; ITC (down 0.5%) and Hindustan Unilever (down 0.6%) are putting pressure on FMCG space.
Top losers on the Sensex are Bharti Airtel (down 2.1%), NTPC (down 0.7%) and Hindustan Unilever (down 0.6%). Gainers are Hindalco (up 3.4%), Tata Steel (up 3.5%) and SBI (up 2.3%).
Kotak Securities is bullish on several stocks across sectors such as banking, capital goods, engineering, information technology (IT), construction, media and logistics.
From the broader markets, midcap and smallcap index are trading higher by over 1% each. Analysts are also positive on the broader
market space."Large and mid-cap stocks which are fundamentally sound and are available at reasonable valuations should be accumulated," said Dipen Shah.
