BSE Realty rise for the fourth straight session; up 8% since Budget

BSE Realty has rallied nearly 8% since the Budget day against the 2.8% rise in Sensex

Realty stocks extended gains for the fourth session to surge up to 7.8% after the government on February 1 announced infrastructure status to affordable housing to encourage investment in this segment and offered tax sops to developers sitting on completed but unsold inventories.

 

Hailing the announcement, the BSE Realty index surged 3.5% to settle Monday’s trade at 1.9%. The index has rallied nearly 8% since the Budget day against the 2.8% rise in Sensex during the same period.

 

Among the individual stocks, HDIL rallied 7.8%, Godrej Properties surged 3.3%, Prestige jumped 2.8%, Unitech was up 1.9%, DLF rose 1.3% and Sobha gained 1% on BSE.

 

From the non-index pack, Ashiana Housing zoomed 14.2%. Shares of housing finance companies also rose with HDFC rising by 3.6% and LIC Housing Finance up 2.78% during the day.

 

 The government also proposed to reduce the capital gain tax liability on immovable property to promote the real estate sector and to make it more attractive for investment.

 

The Budget proposal added that the National Housing Bank will refinance individual housing loans of about Rs 20,000 crore in 2017-18.

 

The Finance Minister announced 1 crore houses will be built by 2019 in rural India for the homeless and those living in ‘kaccha’ houses.

 

 “We propose to facilitate higher investment in affordable housing. Affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits,” finance minister Arun Jaitley said..

 

BSE Realty rose 4.8% on the Budget day with some stocks surging up to 20% after the measures were announced. The index has gained 17.11% so far in 2017.