Postweek Report (8 Jan — 12 Jan)
Metals, realty and auto — sectors that are standing out right now.
smallcase Metal Tracker
According to official data, India’s crude steel output crossed 100 million tonnes for the first time in a calendar year in 2017. In May 2017, the government released the National Steel Policy 2017 that aims to increase crude steel production capacity to 300 million tonnes (mt) by 2030–31 from about 100–120 mt currently, and per capita consumption to 158 kg of finished steel as against the current consumption of 61 kg.
Favourable government policies like the minimum import price and anti-dumping duty, production cuts in China and seasonal demand pick up have combined to push steel prices up by 3–5% during the previous quarter. This has allowed ferrous metal producers to record stronger than expected fundamental performance on a y-o-y basis in the December 2017 quarter.
You can benefit from the upward movement in metal prices by investing in the smallcase Metal tracker. The tracker has gained 57.70% over the last 1 year!
smallcase Auto Tracker
Earlier this week, the government approved 100% FDI under the automatic route in the construction development segment, which includes townships, housing, built-up infrastructure and real estate broking services. The move is expected to bring in clean money into the system from stronger entities such as pension funds and sovereign wealth funds.
After the triple strike of demonetisation, RERA and GST, the realty sector seems to be slowly but surely recovering. Comparatively lower interest on home loans, correction in property prices and the government’s push on affordable housing is expected to drive growth in this sector.
These factors, along with any further allowances that might be made in Budget 2018 for the realty sector, are expected to continue to drive up stock prices. You can invest in this sector through the smallcase Realty tracker. The tracker has returned 3.65% returns this week and 132.65% over the previous 1 year!
For more on the auto sector and updates on the markets, read the complete Postweek Report on smalltalk.
