Rate-sensitive realty and banking stocks led the market charge in March

The interest rate sensitive realty and banking sectors have led the market charge this month, gaining 14.9 per cent and 10.4 per cent, respectively. In comparison, the benchmark Sensex has gained 6.4 per cent. Analysts say both realty and banking sectors have lived up to their high-beta, risky asset tag. 

A high-beta stock tends to gain more than the market during an upward move. Similarly, they fall more than the market during a downturn. Adding such stocks to the portfolio is usually beneficial when the market is flush with liquidity. 

The latest rally in the market has been on the back of huge foreign portfolio investor (FPI) inflows. So far this month, FPIs have pumped in nearly $4 billion into domestic stocks. All the 10 components of the BSE Bankex has gained at least 7 per cent in March. 

On the other hand, all components of the BSE Realty index, with the exception of one, has rallied. Sunteck Realty, Prestige Estates and Indiabulls Real Estate, the top realty sector gainers, have each rallied nearly 30 per cent. 

Meanwhile, Bank of Baroda, IndusInd Bank and ICICI Bank have each gained over 12 per cent.