PSU and Realty stocks key outliers in 2023. Nifty PSE, Nifty Realty Index rise over 70% outperforming others.
Coal India, with strong uptick in production, power producers as NTPC, capital goods major BHEL and many others have given strong returns. Also Read- PNC Infratech shares surge over 6% as company bags new hybrid annuity road project The Nifty realty Index has been the largest gainer. Analysts ta ICICI Securities have highlighted that concerns over rising mortgage rates impacting demand have been addressed by all companies under their coverage which clocked record residential sales bookings in FY23 (up 43% YoY in value terms) and momentum sustained in H1FY24 in spite of the absence of big-ticket launches by most developers.
All coverage companies have a large launch pipeline for festive season and H2FY24 (September’23-March’24), said analysts at ICICI Securities. Hence, they estimate pan-Indian residential market share for companies under their coverage to grow from 24% in FY23 to 28% in FY25 led by sales booking CAGR compund annual growth) of 13.8% over FY23-25. Meanwhile the other key index gainers during 2023 included Auto, Infra and Public Sector Banks.
The Nifty Auto index stands out with gains of more than 40% during calendar year 2023 till date. Nifty Infra index (thematic index) and Nifty PSU Banks with gains of 35.95% and 33.44% also have given handsome returns. The Auto makers have seen strong gains led by steady demand and sales growth for passenger vehicles, pickup in demand for two wheelers while commercial vehicles too have seen sales momentum continue.
Overall, the earnings of auto companies are likely to grow 66% year-on-year in FY24 as per HDFC Securities Estimates. The same is being reflected in the stock price gains. Infrastructure stocks have remained in the spotlight looking at government spending and
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