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Economic Times
a day ago
- Business
- Economic Times
Liquidity driving market; overweight on hotels, real estate & REIT: Venkatesh Balasubramaniam
Tired of too many ads? Remove Ads , MD & Head of Research,, says despite real estate stocks trading above NAV, he favours DLF and REITs, attracted by potential interest rate declines boosting REIT yields . He is also overweight on hotels , citing limited investment and strong demand creating a favorable structural play. Leela Hotels and Chalet Hotels are specifically mentioned as preferred stocks. JM Financial is overweight on hotels, real estate, and REITs – all of which are outside the believe this is basically running on liquidity. Domestic flows have been very strong. The monthly SIP numbers are still very strong at almost 267 billion per month. Even though mutual funds have roughly 5% of their holdings in cash, every month when you get these holdings, when you get these flows, you need to deploy it, so that is one thing. Secondly, since March onwards, FII inflows have actually turned positive. So, March, April, May, and in June so far, FII flows have been positive. So, definitely this is running on are not that weak. Fundamentals are okay. The economic outlook is also quite good. But as valuations are not attractive – be it in largecaps, midcaps, or smallcaps – all are trading at one standard deviation or more above the mean. So, it is very tough to make a positive call based on valuations. Fundamentals are okay, outlook is okay, but at this point in time, whatever runup we are seeing is more because of are benchmarked to the Nifty and in the Nifty 50, there is no real estate stock. So, if we like any real estate stock, automatically we go overweight on real estate. Broadly, the real estate sector is not cheap. Most of the stocks are trading almost 15% to 20% above their NAV. Historically, trading bands are 15-20% below NAV. We are very selective when we come to stocks. We like DLF because it is trading on par. We also like the REIT names primarily because as interest rates come down, a lot of these REITs become very attractive. They are all trading at roughly around 7% yield and 10% growth. It is more of an interest rate kind of a play when it comes to estate, we like from an interest rate perspective, but it is not that we are positive on all real estate stocks, because some of them are expensive and we are aware that over the last couple of quarters and the next couple of quarters also are going to be a little bit on the softer to hotels, it has got nothing to do with Maha Kumbh. Over the last four to five years, hardly any investments have been done in the hotel sector. So, there is a lot of demand, but the supply is not adequate. We believe this is likely to continue over the next year, year-and-a-half or so. From that perspective, we like hotels as a structural play. Some of the stocks we like are recently listed Leela Hotels. We also like Chalet Hotels here. These are two names which we like. So, we are overweight on hotels, real estate, and REITs. Incidentally, none of them are a part of the Nifty.
Time of India
a day ago
- Business
- Time of India
Liquidity driving market; overweight on hotels, real estate & REIT: Venkatesh Balasubramaniam
Live Events You Might Also Like: Rakshit Ranjan on sectors to focus on to geopolitically risk-proof your portfolio (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , MD & Head of Research,, says despite real estate stocks trading above NAV, he favours DLF and REITs, attracted by potential interest rate declines boosting REIT yields . He is also overweight on hotels , citing limited investment and strong demand creating a favorable structural play. Leela Hotels and Chalet Hotels are specifically mentioned as preferred stocks. JM Financial is overweight on hotels, real estate, and REITs – all of which are outside the believe this is basically running on liquidity. Domestic flows have been very strong. The monthly SIP numbers are still very strong at almost 267 billion per month. Even though mutual funds have roughly 5% of their holdings in cash, every month when you get these holdings, when you get these flows, you need to deploy it, so that is one thing. Secondly, since March onwards, FII inflows have actually turned positive. So, March, April, May, and in June so far, FII flows have been positive. So, definitely this is running on are not that weak. Fundamentals are okay. The economic outlook is also quite good. But as valuations are not attractive – be it in largecaps, midcaps, or smallcaps – all are trading at one standard deviation or more above the mean. So, it is very tough to make a positive call based on valuations. Fundamentals are okay, outlook is okay, but at this point in time, whatever runup we are seeing is more because of are benchmarked to the Nifty and in the Nifty 50, there is no real estate stock. So, if we like any real estate stock, automatically we go overweight on real estate. Broadly, the real estate sector is not cheap. Most of the stocks are trading almost 15% to 20% above their NAV. Historically, trading bands are 15-20% below NAV. We are very selective when we come to stocks. We like DLF because it is trading on par. We also like the REIT names primarily because as interest rates come down, a lot of these REITs become very attractive. They are all trading at roughly around 7% yield and 10% growth. It is more of an interest rate kind of a play when it comes to estate, we like from an interest rate perspective, but it is not that we are positive on all real estate stocks, because some of them are expensive and we are aware that over the last couple of quarters and the next couple of quarters also are going to be a little bit on the softer to hotels, it has got nothing to do with Maha Kumbh. Over the last four to five years, hardly any investments have been done in the hotel sector. So, there is a lot of demand, but the supply is not adequate. We believe this is likely to continue over the next year, year-and-a-half or so. From that perspective, we like hotels as a structural play. Some of the stocks we like are recently listed Leela Hotels. We also like Chalet Hotels here. These are two names which we like. So, we are overweight on hotels, real estate, and REITs. Incidentally, none of them are a part of the Nifty.
Time of India
27-05-2025
- Business
- Time of India
It's a buy-on-dips market until Nifty crosses 25,200 barrier decisively: Ajit Mishra
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads , SVP-Research,, says it appears that the Nifty may continue to consolidate for a day or two at the very least. However, given how the banking, financial, and other sectors are doing, it's likely that we'll see a breakout above the 25,200 mark in the coming sessions. Until we firmly break through this 25,200 barrier in the Nifty, the market is currently a buy-on-dips one with a greater emphasis on seems like a roller-coaster ride. Since morning the initial tone was negative. We have drifted lower. We have breached the 24,800 mark, the critical support area. But in no time we witnessed a very sharp recovery. It seems like bulls are not in a mood to lose their control anytime soon. Means, after testing the crucial support of 20 EMA last week, since then we have been seeing that we are gradually inching higher and trying to surpass the immediate hurdle at 25,100 as we have the derivative expiry scheduled, 25,000 still is a zone where the call writers are still very active and we have the highest OI so far. It seems like that consolidation might continue at least in the index for a day or two. But the way we are seeing banking, financials, and other sectors performing well, probably like in the next couple of sessions we might see a breakout also above 25,200 mark. As of now, it is a buy-on-dips market with focus more on stocks until we decisively cross this 25,200 barrier in are seeing a bit of a pressure, which means anyways these stocks were not participating in a similar quantum to what we are seeing in the other sectors. Coal India especially after almost two, two-and-a-half months of consolidation is currently hovering around its major averages. So, until we close sustain above 410 mark decisively, this sideways tone might continue. But comparatively it is a better stock among all three because NTPC and Power Grid are struggling below their major averages, so that is not a good can probably continue to see pressure or underperformance in NTPC, so closer to around Rs 330, 325 is something that the stock might test, that holds true for NTPC and for Power Grid also we are having a similar kind of a structure. Among all three names, Coal India is a comparatively better are seeing stocks especially from the banking and financial packs sitting on the sidelines or witnessing underperformance, seeing some rebound or recovery. But I still believe that one should continue with the top performing names or stocks which were sitting on the sidelines. So, stocks like SBI wherein we have not seen much traction yet, means the stock has been consolidating in a very tight range for almost a week, 10 days. Here the risk-reward is favourable because it seems like a buying pivot formation in the current levels and Rs 820-830 is something that the stock might attempt. So with stoploss at Rs 780, SBI looks better for fresh was the one name wherein we see fresh traction and stability also because we are seeing excessive volatility in the market. Apart from that, from the metal space, Vedanta is something that one can look at. Metal, banking, financials, realty these are sectors basically that one should be focusing on alongside with the themes like defence and select PSUs. So, for Vedanta, we are eyeing that after this consolidation range breakout today Rs 468, 470 is something the stock might test. With a stoploss at Rs 440, one can accumulate Vedanta at current levels.
