Past returns of their sectoral benchmark indices suggested that real estate, metals, IT and power stocks delivered strong returns in the month of December. Since 2008, these sectors have been able to deliver positive returns in 70 -- 80 per cent of the times.
In Decembers, the index delivered an average of 4.91 per cent return, with the real estate barometer ending higher in 71 per cent of the times since 2008. The index was at a maximum turn of 45.68 per cent in the month and has fallen to 12.44 per cent.
The BSE Metal index closed the month higher in 79 per cent of the times, with an average return of 4.83 per cent. The index had a maximum return of 18.96 per cent and fell to a maximum of 9.11 per cent for December.
The BSE IT index came in third with an average return of 3.17 per cent. Since 2008, the index ended up being higher in 71 per cent of Decembers. The average return for Power is 2.04 per cent. A monthly technical analysis by Axis Securities shows that the index has risen 79 per cent of the times.
Axis Securities said IT has moved into the Improving Quadrant, which indicates that sentiment may turn bullish. Metal is expected to beat Sensex in the Leading Quadrant. In case of the BSE Realty, Axis said the index is in a strong upward trend on a long term frame, however on a short term time frame the index continues to consolidate within 3,900 -- 3,000 levels and a decisive breakout above 3,900 levels may cause continuation of the upward trend towards 4200 -- 4500 levels. An immediate support zone is located around 3,400 -- 3,300 levels, it said.
The brokerage is neutral on Sobha, Band, Indiabulls Real Estate, Lodha Macrotech Developers Sunteck, Prestige Estates and Oberoi Realty, and Phoenix Mills, DLF, Prestige Estates and Oberoi Realty.
It is positive on Coal India, Welspun Corp and Ratnamani Metals, while it is neutral on SAIL, Tata Steel, Hindustan Zinc, Hindalco, Vedanta, Jindal Steel, JSW Steel and Hindustan Copper among others.
It likes Adani Power, NTPC, NHPC, ABB, Thermax and Siemens among power stocks while it stayed neutral on BHEL, Tata Power, PTC, Torrent Power, CESC, Kalpataru Power, Adani Transmission and Power Grid.
The brokerage only bullies KPIT Tech in the IT pack. It is neutral on Coforge, CCS, LTIMindtree, Infosys, Wipro, Tata Elxsi, Mindtree, TCS, HCL Tech, Mphasis, Infosys, Wipro, and Tech Mahindra among others.