Winning streak continues

All the sectors performed well last week. The biggest gainers were Realty and Consumer Durables which grew by 13.7 per cent and 13.6 per cent respectively compared to the previous weeks close. According to Ostwal,Realty developers were able to reduce their inventory by selling at 25 per cent discount which will provide them with some working capital. Moreover,investors are gaining confidence in realty stocks as they are under-owned. The expectation of further rate cuts is also building up. The consumer durable sector is growing on account of declining interest rates.

The sectors that registered the least gains were Information Technology and FMCG,which rose by 1.8 per cent and 1.2 per cent respectively. The FMCG sector being the most defensive sector is not expected to improve substantially. If the economy revives and demand improves,only then is significant improvement expected in this sector, says Ostwal.