These 5 sectors gave superlative returns to investors in June; are the gains sustainable?

economictimes.indiatimes.com:

Consumer discretionary, realty, healthcare, automobiles, and capital goods sectors were the top five best-performing sectors in June. The S&P BSE Realty, Healthcare, and Capital Goods sectors have seen 9-10% upside in June. The S&P BSE Auto, Capital Goods, Bankex, and Industrials indices scaled record highs last month.

At least 43 smallcap stocks in the automobile and auto ancillary sector gave high double-digit returns during this period. A majority of these stocks were of auto component and tyre-making companies. Jay Bharat Maruti, Steel Strips Wheels, Subros, Jupiter Wagons, Talbros Automotive, Rico Auto Industries, NRB Bearings, Precision Camshafts, Rico Auto Industries, and Rane Brake Lining were some of the auto component makers whose stocks rallied 18-92% last month.

Given the strong outlook for automobile demand, analysts are bullish on the auto ancillary space as well. Brokerage HDFC Securities is bullish on Talbros Automotive as the company aims at doubling its revenue to Rs 2,200 crore by FY27, led by increasing exports and strong order booking. The brokerage recommends buying the stock on dips for a target of Rs 850.

In the capital goods space, 31 smallcap stocks clocked double-digit returns in June. Everest Kanto Cylinder, Inox Green Energy, GE T&D, Elin Electronics, Graphite India, Kirloskar Industries, HPL Electric, Suzlon Energy, Skipper, KPI Green Energy, and HEG have given 15-62% returns. Most market experts remain bullish on the capital goods sector, given the government’s thrust on infrastructure and boost to local manufacturing.