Modi effect: Realty index surges 27% in one week

DLF, Indiabulls Real Estate, D B Realty, Unitech, HDIL and Anant Raj have gained 4-9% each on the BSE.

Real estate shares have continued their uptrend for the fifth day in a row after the emphatic win of Narendra Modi-led Bharatiya Janata Party (BJP) in the 2014 General Elections.

DLF, Indiabulls Real Estate, D B Realty, Unitech, Housing Development and Infrastructure (HDIL), Anant Raj, Mahindra Lifespace Developers and Godrej Properties have gained 4-9% each today on the Bombay Stock Exchange (BSE).

The S&P BSE Realty index, a gauge for real estate companies, is the second largest gainer among the sectoral indices and has rallied 5.3% compared to a 0.75% rise in S&P BSE Sensex at 1155 hours.

In the past one week, the realty index has rallied 27.5% against a 2.4% rise in the benchmark index. DLF, D B Realty, Indiabulls Real Estate and Unitech have appreciated by 30-53% each during the week.

The BJP manifesto has promised a house for every family in India within 75 years of Independence, that is by 2022. To cater to the BJP vision for the next eight years, builders and consultants are rushing to ready their blueprint on affordable housing, a promise that has not been delivered effectively so far by any government, the Business Standard report suggests.

Among individual stocks, DLF and Indiabulls Real Estate have rallied 9% each today to Rs 210 and Rs 98 respectively. Unitech has surged 8% to Rs 28, while D B Realty (Rs 87), Anant Raj (Rs 73.45) and HDIL (Rs 98.45) has gained 7% each on the BSE.