Nifty Realty index hits two-year high; DLF, Indiabulls touch 52-week high

Shares of real estate companies were in focus with Nifty Realty index hitting an over two-year high on the National Stock Exchange (NSE) in otherwise subdued market.

At 1:25 pm; Nifty Realty index, the largest gainer among sectoral indices, was up 4.8% at 239, as compared to 0.13% decline in the Nifty 50 index. The realty index hit an intra-day high of 239.65, its highest level since March 4, 2015.

The S&P BSE Realty index too rallied 5% to 1,811, hitting fresh 52-week high of 1,817 on BSE in intra-day deal.

Indiabulls Real Estate, DB Realty, Ansal Properties and Nitesh Estates have rallied more than 10%, while Ansal Properties, Unitech, Housing Development & Infrastructure, DLF, Kolte-Patil Developers and Ashiana Housing up in the range of 5% to 8% on BSE.

Indiabulls Real Estate (IBREL), DLF and Omaxe hit their respective 52-week highs in intra-day trade today.

IBREL has zoomed 20% to Rs 127 in intra-day trade after company said it board considered streamlining residential, commercial and leasing businesses.

The company plans to place the commercial and leasing business under Indiabulls Commercial Assets Ltd (IBCAL), it said in a stock-exchange filing after a board meeting.

As main strategy, IBREL (post restructuring) will focus on growth of business through joint venture developments with land owners without incurring any significant upfront land acquisition costs.

This model of growth along with net debt capped at Rs 2,000 crore will allow IBREL (post restructuring) to have superior earnings and higher ROE from the development business going forward. IBCAL (post restructuring) will develop offices only for the purpose of leasing and earning annuity revenues. The net debt of IBCAL will be reduced over medium to long term from the annuity revenues.  This model will provide cheaper cost of capital to fund the expansion of business after FY 2020-21, it added.

The residential segment will remain with Indiabulls Real Estate and will focus on earning profit and return on equity by selling housing properties.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
INDBULL.REALEST.	124.60	105.85	17.7
GARNET CONST	15.89	13.60	16.8
D B REALTY	50.15	45.15	11.1
ANSAL PROP	24.10	21.85	10.3
NITESH ESTATES	10.30	9.35	10.2
DILIP BUILDCON	402.00	370.75	8.4
KOLTE PATIL DEV.	190.10	177.15	7.3
H D I L	91.85	85.70	7.2
TIRUPATI SARJAN	25.60	24.00	6.7
UNITECH	6.00	5.64	6.4
ANSAL BUILDWELL	66.70	62.75	6.3
SPML INFRA	88.10	83.25	5.8
DLF	168.45	159.70	5.5
ASHIANA HOUSING	235.00	222.85	5.5
D S KULKARNI DEV	66.95	63.50	5.4
ANANT RAJ	55.80	53.10	5.1