Realty shares rally after RBI cuts repo rate; CNX Realty index surges 6%
HDIL, Indiabulls Real Estate, Unitech, DLF, Kolte-Patil Developers, and Godrej Properties rallied between 5-13% on NSE.
 "Realty shares rally after RBI cuts repo rate; CNX Realty index surges 6%")
Shares of real estate companies are trading higher by up to 13% on the National Stock Exchange (NSE) after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 7.75% with immediate effect.
Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, Unitech, DLF, Kolte-Patil Developers, Puravankara Projects and Godrej Properties have rallied between 5-13%, while Sobha Developers, Oberoi Realty, Delta Corp and Prestige Estates are up 1-2% on the NSE.
At 1127 hours, CNX Realty index, the largest gainer among the sectoral indices, has surged 6% as compared to 1.9% rise in benchmark CNX Nifty.
Among the individual stocks, HDIL has spurted 13% to Rs 74.50 on back of two-fold jump in trading volumes. The stock hit a high of Rs 75.40 in intra-day trade and has seen a combined 18.98 million shares changed hands so far on NSE and BSE.
Indiabulls Real Estate has zoomed 11% to Rs 70.80, while DLF and Unitech are up 9% each at Rs 146 and Rs 17 respectively.
Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, Unitech, DLF, Kolte-Patil Developers, Puravankara Projects and Godrej Properties have rallied between 5-13%, while Sobha Developers, Oberoi Realty, Delta Corp and Prestige Estates are up 1-2% on the NSE.
At 1127 hours, CNX Realty index, the largest gainer among the sectoral indices, has surged 6% as compared to 1.9% rise in benchmark CNX Nifty.
Among the individual stocks, HDIL has spurted 13% to Rs 74.50 on back of two-fold jump in trading volumes. The stock hit a high of Rs 75.40 in intra-day trade and has seen a combined 18.98 million shares changed hands so far on NSE and BSE.
Indiabulls Real Estate has zoomed 11% to Rs 70.80, while DLF and Unitech are up 9% each at Rs 146 and Rs 17 respectively.
Rajeev Talwar, executive director, DLF said “it is a good sign for the economy and confidence booster for the buyer. Hopefully banks will pass on the cut to home buyers. It will lead to more launches in real estate sector and projects getting completed on time.”
"There will have to be more cuts, lending rates have to come down by at least one or two percentage points to get investments going," said Harsh Mariwala, chairman of FMCG major Marico, adding that he expected more interest rate cuts in February or March.