Thirteen realty stocks rose 0.89% to 4.74% at 10:55 IST on BSE after Union Cabinet yesterday, 29 October 2014, approved relaxation of rules for foreign direct investment in construction sector.
DLF (up 4.74%), Sobha Developers (up 4.34%), Mahindra Lifespace Developers (up 3.78%), Unitech (up 3.93%), Housing Development & Infrastructure (up 2.8%), D B Realty (up 2.96%), Indiabulls Real Estate (up 2.79%), Prestige Estates Projects (up 2.39%), Anant Raj (up 2.01%), Oberoi Realty (up 1.97%), Godrej Properties (up 1.19%), Phoenix Mills (up 1.58%), and Omaxe (up 0.89%) edged higher.
Meanwhile, the S&P BSE Sensex was up 80.07 points or 0.3% at 27,178.24.
The S&P BSE Realty index underperformed the market over the past one month till 29 October 2014, sliding 8.91% compared Sensex's 1.88% rise. The index had also underperformed the market in past one quarter, declining 21.01% as against Sensex's 4.26% rise.
The Union Cabinet yesterday, 29 October 2014, approved relaxation of rules for foreign direct investment (FDI) in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. The Cabinet approved 100% FDI under automatic route in the construction development sector.
The Cabinet decided to reduce the minimum floor area to 20,000 sq mt from the earlier 50,000 sq mt. It also brought down the minimum capital requirement to $5 million from $10 million. In case of development of serviced plots, the condition of minimum land of 10 hectares has been completely removed.
The government said the relaxation was necessary as FDI inflows in the sector, which witnessed a steady rise during 2006-07 and 2009-10, have started declining.
Powered by Capital Market - Live News