Sobha Developers (up 2.91%), D B Realty (up 2.09%), DLF (up 1.95%), Unitech (up 1.74%), Oberoi Realty (up 1.73%), Indiabulls Real Estate (up 1.62%), Parsvnath Developers (up 1.45%), Peninsula Land (up 1.37%), HDIL (up 1.19%), Anant Raj Industries (up 0.59%), Godrej Properties (up 0.56%), Sunteck Realty (up 0.19%) and Phoenix Mills (up 0.04%), edged higher.
The BSE Realty index was up 1.14% at 2,249.18. It outperformed the BSE Sensex, which was up 0.29% at 20,162.44.
The BSE Realty index had outperformed the market over the past one month till 28 January 2013, rising 6.40% compared with the Sensex's 3.39% rise. The index had also outperformed the market in past one quarter, rising 23.52% as against Sensex's 7.94% rise.
The Reserve Bank of India (RBI) today, 29 January 2013, announced a 25 basis points reduction in its key policy rate viz. the repo rate to 7.75% from 8% after a monetary policy review. The central bank also announced a reduction of 25 basis points in the cash reserve ratio (CRR) to 4% from 4.25% effective the fortnight beginning 9 February 2013. As a result of the reduction in the CRR, around Rs 18000 crore of primary liquidity will be injected into the banking system, RBI said.
Lower interest rates may revive property demand. Purchases of both residential and commercial property are largely driven by finance.
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United Spirits, Shriram Transport Finance Company, Colgate Palmolive (India) and Nestle India are among the other gainers.