Bull Market: Long & Short of the Market: Real Estate Reigns, Cyclicals Rise and More


While the streets are boiling over the real estate pack, following a reduction in stamp duties on registrations by the Karnataka government, real estate as a sector relies on very strong fundamental indices. Growing demand, liquidity, strong balance sheets of major real estate companies, coupled with growing job prospects and increasing IT pay, have acted as a catalyst for real estate companies in the South region, which is now becoming a national phenomenon in all metropolises. Learn more about the real estate space, the outlook for cyclical valuation, the risks of excess liquidity and much more in this week’s edition of “Long & Short of Markets”.

At the dawn of an upcycle, but not cheap!

Cyclicals have been at the forefront of this long bull rally and most cyclicals are overvalued despite long order pipelines which only unlock the bull cycle. Dalal Street veteran Sandip Sabharwal believes the best value for cyclicals is available when everyone has a lot of concerns around them about growth, margins and working capital. At current prices, valuations are not sustainable. READ MORE


Beneficiaries of the rapid vaccination campaign

Reopening trade is the focus of concern again, as India’s rapid vaccination campaign has boosted prospects for contact-intensive sectors. India’s largest airline,. A peak in air passenger traffic of 34% month-on-month in August is one of the key factors. READ MORE

The real test of a booming economy

Looking for signs of a booming economy? You need to look at the growth of the real estate and infrastructure sector, says veteran fund manager Mihir Vora. According to him, “no country in the world has been able to grow high or double digits without the infrastructure and real estate sectors growing simultaneously.” Therefore, he believes, the boom in real estate and infrastructure is crucial for India’s strong growth in the medium term. READ MORE

Realty’s long awaited turnaround!

Real estate is on the cusp of a multi-year bull run. Growing support for policy fronts such as fee reductions on registrations, low borrowing costs, excess liquidity have all lined up perfectly for a structural bull cycle. Under these conditions, listed stocks focus on cash flow and profitability rather than building up land reserves and scaling up projects without due diligence, which is a good sign according to Dalal Street veteran Dipan Mehta . READ MORE

Risk of excess liquidity

Liquidity has been the fan the economy and the stock market recovered from the pandemic shock of March 2020 and it is still driving the markets. Banks, meanwhile, are under pressure from margins due to excess liquidity, according to the SBI Economic Research report. READ MORE


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