JOIN USPSUs, oil & gas, realty, retail sectors shine as Sensex ends in red
Even as Sensex closed in the red on Tuesday, some sectors like oil & gas, auto, realty, media, and retail stole the show by being gainers while sectors like steel and banking were down along with the Sensex.
Apart from major stocks in these sectors, these sectors’ indices were in the green. All stocks in the BSE oil & gas index ended in green. While the index grew 2 per cent, some individual stocks like IOC, GAIL grew over 4 per cent.
Even the BSE PSU index grew by over 2 per cent. NLC was the largest gainer moving up 14 per cent in Tuesday’s trading session. Others like Metals and Minerals Trading Corporation (MMTC) grew over 11 per cent.
“Oil & gas and PSU sectors have gained more than 2 per cent each during the day on the back of improved sectoral outlook,” says Likhita Chepa, Senior Research Analyst at CapitalVia Global Research. “We expect core sectors such as oil & gas, energy, and metals to remain in focus in the coming days.”
“Investors can carefully choose stocks from the mentioned sectors in the mid and small-cap space as this space is expected to perform better than large-cap.”
Most auto firms listed in the exchange like Bosch Limited, TVS Motors have grown more than 2 per cent in Tuesday’s session.
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Among the realty names, Indiabulls Real Estate and Godrej Properties were up 1 per cent in Tuesday’s trade. So far as the retail and media segment goes, Aditya Birla Fashion, Burger King, and Jagran Prakashan have been some of the gainers.
Analysts say this is because of the fact that Covid recoveries are more than fresh cases. Abneesh Roy, Executive Vice President at Edelweiss Financial Services, says, “Most of the media and retail stocks have sharply corrected and will bounce back if the second wave of the coronavirus starts to dip.”
Analysts point out that some of these stocks seem good picks now. “These stocks have been under pressure for last two months since the covid cases started rising once again and thus have become good value pick at the current levels. Even pullback was seen in other sectors like Auto and Realty which have been in the correction mode so far,” says Hemang Jani from Motilal Oswal Financial Services.