Market wrap: Property wins big, Adani lags in stellar year for Indian stocks

Indian equities are set to end the year with a record winning streak, with the drivers of the rally transcending the nation’s largest companies.

Robust economic growth, an infrastructure push and a pause in interest-rate increases have helped propel its equity market to successive highs. Stocks related to real estate, industrials and capital goods are among those leading the gains, while Adani Group companies — the heavy hitters of 2022 — are mostly finishing with losses despite a rebound in recent months.

As the benchmark S&P BSE Sensex Index heads for an eighth year of gains with returns of 17% in 2023, expectations that the party led by Prime Minister Narendra Modi will win elections in 2024 are raising hopes this bull run may continue.

Global funds have bought more than $20 billion of local shares in 2023, after taking out $17 billion last year, signaling investors’ preference for India as China grapples with an economic slowdown.

Here’s a look at some of the significant stock moves of 2023:

Real Estate
A measure of real estate stocks rallied to its highest level since 2008, outpacing all other sector indexes managed by the BSE Ltd. A pause in interest-rate hikes, demand for luxury housing and investments by Indians living abroad boosted developers. Prestige Estates Projects Ltd. surged about 140%, while DLF Ltd. almost doubled.
“A combination of a strong pent-up demand for housing, above average affordability and 12-year low unsold inventory should drive a multi-year virtuous housing cycle,” according to a Jefferies note this month.Infrastructure
Engineering behemoth Larsen & Toubro Ltd. and UltraTech Cement Ltd. ranked among the top performers on the benchmark gauge, underscoring the focus on building infrastructure in the world’s most-populous nation.

“Cement is a good way to play real estate and infrastructure sectors in

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