 "Realty stocks hit 8-month high")
Shares of the realty sector climbed to an eight-month high on Friday as the June quarter earning numbers of DLF, the country's largest in the segment, boosted sentiment.
Gurgaon-based DLF’s sales were up 29 per cent to Rs 2,231 crore, positively surprising the markets. The stock jumped 18.3 per cent to Rs 134, pulling the S&P BSE Realty index up 7.6 per cent, its best single-day performance since January 15.
Also, market players said, cooling inflation raised hope for an interest rate cut on or before the next Reserve Bank of India (RBI) policy review (due September 29). Core inflation data fell to 3.78 per cent in July, from 5.4 per cent in June.
“This will provide a strong case for RBI to cut interest rates before its September policy meet. As a result, we saw a sharp shift in interest rate-sensitive sectors like banks, non-bank finance companies and real estate today,” said Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services.
The real estate sector has been under pressure; slow economic recovery and rising prices have led to weakened demand among home buyers. It has also lost sheen as an investment avenue in the wake of rising equity markets. The index has fallen about 15 per cent since the beginning of the year, barring the seven-plus per cent gain on Friday.
HDIL was the second best stock in the index, up 11.5 per cent. Followed by Oberoi Realty and Unitech, up 6.2 per cent and 5.6 per cent, respectively.
Gurgaon-based DLF’s sales were up 29 per cent to Rs 2,231 crore, positively surprising the markets. The stock jumped 18.3 per cent to Rs 134, pulling the S&P BSE Realty index up 7.6 per cent, its best single-day performance since January 15.
Also, market players said, cooling inflation raised hope for an interest rate cut on or before the next Reserve Bank of India (RBI) policy review (due September 29). Core inflation data fell to 3.78 per cent in July, from 5.4 per cent in June.
“This will provide a strong case for RBI to cut interest rates before its September policy meet. As a result, we saw a sharp shift in interest rate-sensitive sectors like banks, non-bank finance companies and real estate today,” said Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services.
The real estate sector has been under pressure; slow economic recovery and rising prices have led to weakened demand among home buyers. It has also lost sheen as an investment avenue in the wake of rising equity markets. The index has fallen about 15 per cent since the beginning of the year, barring the seven-plus per cent gain on Friday.
HDIL was the second best stock in the index, up 11.5 per cent. Followed by Oberoi Realty and Unitech, up 6.2 per cent and 5.6 per cent, respectively.