Realty shares in focus; DB Realty, Indiabulls up over 7%

Ansal Buildwell, Anant Raj, Parsvnath Developers, D S Kulkarni Developers and HDIL were up 5%-9% on the BSE.

Shares of real estate companies have rallied by up to 14% on back of heavy volumes after media report suggests that the BrihanMumbai Municipal Corporation (BMC) has recommended an increase in permissible floor space index (FSI) in Greater Mumbai.

Among the individual stocks, D B Realty has zoomed 14% to Rs 53.15 on the BSE on back of an over three-fold jump in trading volumes. A combined 1.06 million shares changed hands on the counter so far.

Ansal Buildwell (9% at Rs 90), Indiabulls Real Estate (up 8% at Rs 61.55), Anant Raj Industries (7% at Rs 38), Parsvnath Developers (5% at Rs 20), D S Kulkarni Developers (5% at Rs 80), Housing Development & Infrastructure (5% at Rs 87), Kolte-Patil Developers (4% at Rs 129), DLF (3% at Rs 126) and Oberoi Realty (3% at Rs 293) were up between 3%-9% on the BSE.

At 10:24 am, the S&P BSE Realty index, the largest gainer among sectoral indices, was up 3% as compared to a marginal 0.03% decline in the benchmark S&P BSE Sensex.

According to Business Standard reports, in the run-up to the election in February next year, the Shiv Sena-Bharatiya Janata Party-controlled BrihanMumbai Municipal Corporation (BMC) has recommended an increase in permissible floor space index (FSI) from the present level of 1.33 to 2 and in some cases even up to 5. FSI is the ratio between allowable construction space to the actual space.

The current FSI stands at 1.33 in the island city and one in the suburbs of Mumbai and the new development plan proposes to raise it to 2, added report. CLICK HERE TO READ FULL REPORT.