One of the unintended beneficiaries of covid was the real estate sector. Liquidity levels saw a sharp rise, which made real estate stocks sitting in dumps since 2008, make a comeback. There are three probable reasons. First financial reason, excess liquidity. Second, all of sudden the need to have a bigger house, which at times can serve as an office also was felt by more people than usual. Third, by this time a number of companies had learnt lessons about what not to do when time is good. The end result, excess inventory of the sector being taken care of and some saving’s once again shifting toward real estate as an asset class.
With election season kicking off with Karnataka state elections, the government spending on infrastructure projects, which has remained at elevated levels for many years, may see a further push. Many state governments may rush to complete and announce more of them. This will have a trickle down effect on many parts of the economy and specially companies in contracting and construction. ET screener powered by Refinitiv’s Stock Report Plus lists down stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy".
The high level of inflation and increasing benchmark interest rates have raised investor concerns over the possibility of a recession in the near future.
Equinix, Inc. (NASDAQ:EQIX) is a Redwood, California-based digital infrastructure corporation that has a specialty in providing data centers to multiple tenants.