Real estate shares in focus; Sobha, Sunteck Realty hit 52-week highs

Sobha, Sunteck Realty, Oberoi Realty, Dilip Buildcon and Delta Corp were up more than 5% each.

Shares of real estate companies were in focus and rallied by up to 20% on the BSE in intra-day trade. Sobha, Vipul, Sunteck Realty, Oberoi Realty, Dilip Buildcon and Delta Corp were up more than 5% each.

At 02:09 pm; Nifty Realty index and S&P BSE Realty index, the largest gainers among sectoral indices, were up 3.6% each as compared to 0.8% rise each in Nifty 50 and S&P BSE Sensex. The Realty index has rallied 10% since the Budget day against the 4% rise in benchmark indices during the same period.

Sobha, Sunteck Realty, Ajmera Realty, Dilip Buildcon, Radhe Developers and Simplex Realty have hit their respective 52-week highs on the BSE in intra-day trade.

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. 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.

“In a falling interest rate scenario with the GDP of the country growing at the fastest pace among the major economies and an easy business environment which is being pushed by the government to bolster the “Make in India” initiative, the demand for assets across the real estate sector may see gradual revival in the next 1-3 years,” CARE Ratings said in a recent report.

The real estate sector is headed for greater transparency, and accountability after the introduction of Real Estate Regulation and Development Act, 2016 (RERA) and various other regulatory and policy initiatives. Sources of funds to the cash-starved sector have recently witnessed innovation with introduction of structured products through CMBS, Real Estate Investment Trusts (REITs), Private Equity (PE) funding etc., it added.

Moody's Investors Service said that sales in India's real-estate and auto sectors are gradually recovering after falling sharply in the immediate aftermath of demonetization and expects the trend to continue over the second half of this year.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
SOBHA	342.60	290.55	17.91
LANDMARK PROP.	3.82	3.36	13.69
VIPUL LTD	75.25	66.80	12.65
SUNTECK REALTY	280.55	255.70	9.72
DILIP BUILDCON	326.10	306.00	6.57
VAS INFRA.	18.50	17.40	6.32
OBEROI REALTY	343.00	323.45	6.04
ANSAL BUILDWELL	60.00	56.70	5.82
DELTA CORP	151.00	142.85	5.71
UNITECH	6.34	6.00	5.67
RADHE DEVELOP.	49.35	47.00	5.00
MERCANTILE VENT.	9.46	9.01	4.99
SIMPLEX REALTY	105.20	100.20	4.99
NITESH ESTATES	8.92	8.51	4.82
EPSOM PROPERTIES	5.12	4.89	4.70
ANSAL HOUSING	23.75	22.70	4.63
VISHVAS PROJECTS	6.59	6.31	4.44
D S KULKARNI DEV	64.00	61.50	4.07