The BSE Realty index fell 11 per cent over the last month and eight per cent over the week as real estate companies reported margin pressures in the September quarter.
The Street has welcomed the sustained demand and higher sales for two-wheeler makers in September by pushing up stock prices of the three key companies by three to seven per cent over the past week.
While demand for consumer durables has been growing fast, investors need to be selective as stock valuations have risen even faster.
With the broader indices continuing to power ahead and valuations trading at a premium, investors tend to look at small and mid-cap companies for bargains.
Following a strategy that is different from the herd could help increase returns in a market trading at premium valuations.
A rise in consumer confidence, improvement in profitability and aggressive expansion plans signal better tidings for listed players in the organised retail space.
Fund houses bet on growth, divestment and deregulation.
These schemes are the Axis Equity Fund, Sundaram BNP Paribas PSU Opportunities Fund, DSP BlackRock World Mining Fund and the Fidelity Equity Fund
Developers are tweaking their business model by launching smaller apartment sizes and playing the volume game to keep prices low and create buyer interest.
While a unique business model, growth opportunity and consistent track record are the positives for the issue, the pricing appears stiff.
Tough market conditions and low valuations are the key hurdles for the Wockhardt management as it tries to tide over its debt problems.
A well-balanced board of directors, proactive shareholders and swift action against malpractices could restore market confidence.
Stick to disciplined investing. Do your homework thoroughly before committing your funds or you will be speculating. This is not advisable on both counts of managing risk and enhancing returns. Preferably, add companies that are leaders in their respective businesses. The companies should have reasonably decent prospects, sound management and strong entry barriers, apart from healthy financials that will help them tide the current rough patch.
Despite the hiccups experienced by the auto component industry, better growth prospects and low valuations suggest that it's a good time to buy solid companies in this space.
Fund managers and wealth advisors say that in the long-term diversified equity funds are the best bet.
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