Market Updates 29 Sept. 2020 – Walmart eyes Tata group’s ‘super app’

Realty shares mixed despite rising home sales
The Indian residential property market seems to be crawling back towards normalcy. Housing sales in the top seven cities grew 34% in the quarter ending September as compared to the lockdown-hit April-June quarter. Apart from low interest rates and attractive pricing offered by developers, demand from NRIs also helped boost demand. However, the real estate sector isn’t quite out of the woods yet. Compared to the July-September quarter last year, sales are down 61%. Shares of major real estate players showed mixed reactions today—Brigade Enterprises (+0.3%), Sun Teck (+0.1%) and DLF (-2.1%). That said, over the last three months, these stocks have risen about 19.7%, 43.0% and 4.6%, respectively. Nifty Realty index has risen 5.2% over the last three months.

Walmart eyes Tata group’s ‘super app’
The retail sector is all set to get hot this winter. The Tata group aims to launch its super app around December-January. The app is expected to put the group’s various consumer offerings together onto a single platform. Shares of Tata group companies fared positively today, as TCS (+2.4%), Titan (+2.6%), Trent (+2.9%) and Tata Chemicals (+0.8%) ended in the green. As per reports, US retail major Walmart is in discussions to invest $25 billion in the app. The retail sector is already heating up with the acquisition of Future Group’s businesses and the PE investments in Reliance Retail.

Hero Moto in fast lane ahead of monthly volumes 
Shares of Hero Moto gained 2.8% today, indicating that investors are upbeat about monthly sales numbers, which will be announced in the first week of October. Among the major two-wheeler players in India, Hero Moto is the fastest to bounce back with domestic sales growth of 9% in August, after posting declines in June (-27%) and July (-1%) on a year-on-year basis. The company said that it is cautiously optimistic about demand in the year ahead. India’s leading two-wheeler maker is better placed in the current scenario given its higher rural exposure and dominance in the entry-level segment. Further, Hero Moto and Harley Davidson are said to be in talks to strike a strategic alliance. As part of the arrangement, Hero is likely to import and distribute Harley-Davidson bikes after the latter shut shop in India. Meanwhile, shares of Bajaj Auto (-2.2%) and TVS Motors (-0.14%) ended in the red today.  

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