Realty Sector May Outperform

Dipan Mehta, Member, BSE/NSE is of the view that realty segment is likely to do something to a greater degree.

Mehta told, “We maybe not buy DLF at Rs 580 but certainly at corrections we would be looking at getting into it. In fact, the entire real estate sector looks very interesting at this point of time and in all likelihood it may turn out to be the leadership sector in the next leg of this market, having corrected and cooled off for so many months. The last time real estate was hot was way back in May of 2006, from where it had corrected quite sharply. So, there is a good likelihood that real estate may outperform. The reasons are I think pretty simple. We are seeing that interest rates kind of peaking off over there, so that helps the sentiment within the real estate market.”

There are definite optimistic upsides in terms of presentation and regulatory changes that may come to pass. Additionally, the precision and business governance levels are bettering by the day, by the month, inside the realty sector that means analysts and the investing group, may comprehend these stocks well again and feel more compelled to arrange a larger part of their portfolio in that section.

“At the same time, I think some amount of semblance in stability has come back into real estate prices from whatever we gather from industry circles and at the same time, there is still a lot of confusion and absence of conviction in real estate stocks, which kind of helps the sector and if an investor can take a bit of a contrarian gamble over here, there is a good likelihood that there could be some money to be made in real estate,” he further added.