India is one of the fastest-growing major economies in the world, but it is struggling to find enough well-paid jobs for millions of its highly educated graduates.
At close, the Nifty Realty index was up 4.01 percent, led by gains in Prestige Estates, which surged 8 percent. Sobha, Godrej Properties, Oberoi Realty and DLF had gained between 4 and 7 percent.
In March 2023, when Nifty started to recover, the mid and smallcap indices were still under selling pressure. But in April, when the headline index gained 4%, the midcap index advanced over 5% while smallcaps gained 7%.
"The real estate sector will continue to experience strong growth in the coming years. One should be cautious about the high valuations of certain companies in the wires and cables and building materials sectors. There is potential for a revival in the residential real estate cycle, particularly in the NCR area and investing in residential real estate players with strong balance sheets and good corporate governance. One should avoid excessive debt and poor corporate governance to prevent permanent capital destruction."
“From a margin perspective, things are getting better and revenue growth should start accelerating from the third quarter onwards. Therefore, we believe that in a lot of the small cap and midcap names, there is an opportunity to do bottom-up stock picking and we remain quite constructive on selective names.”