Indian share markets continued to trade on a flat note in the noon session. Gains are largely seen in software stocks, bank stocks and capital goods’ stocks. Meanwhile, realty stocks and metal stocks are witnessing majority of the selling activity.
The BSE Sensex is trading higher by 14 points and the NSE Nifty is trading down by 11 points. Meanwhile, the BSE Mid Cap index is trading down by 0.9% & the BSE Small Cap index is down by 1.2%. The rupee is trading at 63.41 to the US$.
2017 was a surprising year to say the least. Notebandi was supposed to be a major hurdle for Indian stocks. Realty segment was to have the biggest adverse impact post-Notebandi. While Real estate prices pan India remained stagnant, stocks were anything but.
The S&P BSE Realty Index grew by a staggering 98% in CY 2017 alone, making it one of the best performing sectors on the Index. The government’s focus on affordable housing and RERA (Real Estate Regulation Act) gave investors hope of a revival in the sector.
Best & Worst Performing Sectors – S&P BSE Index
Post Notebandi came GST. This was also supposed to hamper day to day operations of companies until the whole GST process was streamlined. Consumer durable stocks remained immune to the disruption and logged in a 99% growth. A healthy monsoon also helped boost investor sentiment in consumer durable stocks.
It is also important to note that the dual effects of Notebandi and GST did show on earnings. Most of the companies reported below-par earnings in the past 2-3 quarters. The market though discounted these in expectation of a much better 2018.
In news from software sector, TCS share price surged 3.5% in the afternoon session after the company expanded its relationship with British retailer Marks & Spencer (M&S) to enable it become a digital-first business. As part of the deal, the company will become a principal technology partner for the retailer.
