Equity Alert
Nuvama wary of real estate cos; falling affordability a concern
This story was originally published at 08:31 IST on 18 September 2025
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Equity Alert: Nuvama wary of real estate cos; falling affordability a concern
MUMBAI--0811 IST--Sentiment around the real estate sector will remain cautious in the near term due to challenges such as weak volume growth in the wake of a fall in affordability, lower hiring due to tariff-related concerns, and a slow recovery in economic growth, Nuvama Institutional Equities said in a report.
"We believe volatility shall continue and reckon stocks shall continue to remain range-bound with downside protected by falling mortgage rates while the upside is capped by valuation/volume growth concerns," the brokerage said. The brokerage maintained its 'buy' ratings on Prestige Estates Projects and Brigade Enterprises, singling out these two stocks as its top picks in the sector.
Despite listed developers posting 19% and 39% on-year pre-sales growth in 2024-25 (Apr-Mar) and the June quarter, respectively, the Nifty Realty has fallen around 5% in FY25 and is down 13% till date in 2025, the brokerage noted. "We believe this is a result of faltering confidence in growth as the homogeneity of FY21–FY24 (when demand in all cities was healthy) has gone missing...sales volumes fell for 12 consecutive months between Jun 2024 and May 2025; only Chennai and the NCR logged YoY volume growth in FY25," the brokerage added.
The brokerage said this fall in demand is due to a surge in demand, which has eroded affordability with premium and luxury housing dominating sales. This has caused the width of the housing cycle to narrow considerably. "With price increases likely to moderate, investor-led demand may decline," the brokerage said. The Gurugram housing market may be the next where sales volume will slow down, similar to the falling sales volumes in Hyderabad due to moderation in prices, it added. (Akash Mandal)
Equity Alert: Most Asian indices gain; BoJ starts two-day policy meeting
MUMBAI--0810 IST--Most equity indices in Asia were higher on Thursday, with Japan's Nikkei 225 hitting a fresh record high intraday. Indices in China and Singapore recovered from losses in early trade and moved in the green. Overnight, the US Federal Reserve cut the policy rate by 25 basis points to 4.00-4.25%. Fed Chair Jerome Powell called the move a "risk management cut", while the central bank guided for another 50 basis points of cuts by the end of 2025. There was also some positive sentiment in Asia on signs of improved economic relations between the US and China.
At 0812 IST, Japan's Nikkei was 1% higher. Earlier in the day, the index had touched a record high of 45296.21 points. The rise was led by gains in the real estate and technology sectors. Meanwhile, the Topix was up 0.6%. Among stocks, chemical company Resonac Holdings jumped more than 11%, semiconductor manufacturer Screen Holdings rose nearly 5%, and industrial electronics manufacturer Tokyo Electron gained over 4%.
The Bank of Japan is commencing its two-day policy meeting, with the central bank expected to keep policy rates steady. The outcome is due Wednesday. "Bank of Japan officials are looking for signs of economic resilience, and we believe that the second quarter GDP print, which outperformed market expectations, certainly delivered," CNBC quoted economists as saying.
Among other indices, South Korea's Kospi was up 0.8% and FTSE Singapore Straits Times was up slightly. China's CSI 300 was up 0.4% and Hong Kong's Hang Seng was up 0.2%.
Bucking the trend, the S&P ASX 200 was down 0.7%. The country's unemployment rate remained near historic lows in August at 4.2%, with the economy recently showing signs of a tentative recovery supported by falling interest rates and rising consumer spending, The Wall Street Journal reported. The data is unlikely to shift the stance of the Reserve Bank of Australia much, especially as it has already indicated that further interest rate cuts are likely in the coming months.
Following are the levels of key Asian indices at 0812 IST:
|
INDEX |
LEVEL |
CHANGE IN % |
| CSI 300 Index | 4568.5401 | 0.38 |
| Hang Seng Index | 26954.85 | 0.17 |
| Nikkei 225 Day | 45255.17 | 1.04 |
| TOPIX FIRST SECTION | 3163.03 | 0.55 |
| KOSPI | 3441.23 | 0.82 |
| FTSE Singapore Straits Times | 4326.09 | 0.05 |
| S&P/ASX 200 Index | 8760 | (-)0.66 |
(Gopika Balasubramanium)
Equity Alert: Mkt seen flat to tad up; IT cos in focus post US Fed rate cut
MUMBAI--0756 IST--Benchmark indices are likely to stay flat to slightly higher Thursday with the short-term outlook being positive. A 25-basis-point rate cut by the US Federal Reserve overnight is unlikely to majorly impact the Indian market but a guidance of further cuts in 2025 will keep sentiment higher, analysts said. Information technology stocks will be in focus, with lower interest rates in the US being beneficial for earnings of such companies.
The Nifty 50 is likely to test the 25500 levels in the near term but the rise is likely to be gradual rather than a sharp one, options data showed. A weaker dollar, some progress in trade talks between the US and India, and hope of a trade deal between India and the European Union are some other factors likely to keep the near term outlook positive for the domestic market.
"From a technical perspective, the double bottom breakout (for the Nifty 50) around 25150 remains the key anchor for the ongoing uptrend...we expect the momentum to continue, with Nifty likely to test 25500 and 25670 in the near term," said Rajesh Bhosale, equity technical analyst at Angel One, in a note.
The September contract of the GIFT Nifty also indicated a flat to slightly higher start for the market. At 0748 IST, the contract was at 25506 points, 31 points higher than its previous close. On Wednesday, the Nifty 50 closed at 25330.25 points, up 91.15 points or 0.4%. The BSE Sensex ended at 82693.71 points, up 313.02 points or 0.4%.
Overnight, indices in the US ended mixed after a choppy session, with a 25-basis-point rate cut by the US Fed and guidance of a further 50 bps cut in 2025 failed to lift the market. Indices in Asia were mixed in early trade Thursday. South Korea's Kospi gained slightly after having snapped an 11-session winning run in the previous session. (Akash Mandal)
Equity Alert: US indices end mixed; US FOMC guides for 50 bps of cuts in 2025
MUMBAI--0730 IST--The Nasdaq Composite and the S&P 500 closed slightly lower Wednesday after the US Federal Reserve met expectations of a 25-basis-point cut in the federal funds rate target range, the first cut after it reduced the policy rate by 100 basis points between September and December last year. Meanwhile, the Dow Jones Industrial Average closed higher. The Fed projected two more quarter-percentage-point cuts in the remaining part of 2025.
The US Federal Open Market Committee trimmed the fed funds range to 4.00-4.25% Wednesday, as expected, after holding it for five consecutive meetings. All the members barring Stephen I. Miran voted for a 25-bps cut. Miran voted to reduce the interest rate by 50 basis points.
US Fed Chair Powell termed the move a "risk management cut." The central bank indicated it would steadily cut rates for the rest of the year as there are concerns on weakness in the labour market.
"The one rate cut per meeting pace shows they no longer feel tariff-based inflation is a serious threat and that the economic growth slowdown with companies onboarding fewer new employees is increasingly the bigger risk," Christopher S. Rupkey, chief economist at FWD BONDS, was quoted as saying by CNBC. "Stagflation is out and labour market concerns are moved to the front-burner," he added.
This came against the backdrop of immense political pressure on the central bank, which has generally been allowed to operate with independence from direct political control. US President Donald Trump has criticised chair Powell for months for the central bank's reluctance to cut policy rates.
"He (Powell) noted the softness in the labour market, but reserves a larger cut for more serious conditions that are not present today," Michael Rosen, chief investment officer at Angeles Investments, was quoted as saying by Reuters.
The S&P 500 index ended at 6600.35, down 6.41 points or 0.1%, falling for the second straight session. The Nasdaq Composite closed at 22261.32, down 72.63 points or 0.3%. Both the indices have closed at record highs in a couple of sessions recently. The Dow Jones Industrial Average closed 0.6% higher at 46018.32 points.
Following are the closing levels of US indices Wednesday:
|
INDEX |
LAST LEVEL |
CHANGE IN % |
|
Dow Jones Industrial Average |
46018.32 |
0.57 |
|
NASDAQ Composite |
22261.33 |
(-)0.33 |
|
S&P 500 |
6600.35 |
(-)0.1 |
(Gopika Balasubramanium)
US$1 = INR 87.81
End
Edited by Akul Nishant Akhoury
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