Big Sell Off Predicted for Realty Stocks
Recently, the founder of InvestWorks, Gopi Suvanam was seen in conversation with Latha Venkatesh and Sonia Shenoy on CNBC-TV18. In the interview, he was asked how we would express his bearishness and which stocks he would sell. He was quick to say the real estate sector could see a big amount of sell off. He gave two reasons for his prediction, high beta and high price earning ratios. High beta would mean that the real estate sector will reflect any sell off in Nifty. And real estate has been recording the highest price earning ratios.
He said DLF and Unitech are trading at very high numbers, but of the two, he would be more inclined to selling DLF, which has been registering above 60 price earning ratio.
Suvanam also gave his insights on the banking sector. He said interest rates and non-performing assets were the primary drivers last year. He’s added growth to this year’s list for deciding on a particular bank to bet on. He said he was keenly following IndusInd Bank, which was performing well in terms of growth, its capital position, and NPAs.
Source: CNBC-TV18
Founder, Gopi Suvanam, InvestWorks, InvestWorks expects to see big amount of sell off in realty stocks, See big sell-off in realty stocks, significant scope for growth over the next five years
