DLF gains after Goldman Sachs upgrade

Goldman upgraded its rating to 'buy' from 'neutral'

India's biggest real estate developer DLF rose 3.2% to Rs 188.10 after Goldman Sachs upgraded its rating on the stock to "buy" from "neutral" and raised its 12-month target price to Rs 264 from R 252.

Goldman cited a pick up in residential launches, a recovery in commercial property, easing interest rates, and improved outlooks for asset sales as well as for operating/financial leverage as reasons for upgrade.

DLF's share price is down 0.5% for 2012 while the BSE Sensex is up about 11% in the same period.

The upgrade has come close on the heels of DLF's removal from the Sensex, which will come into effect from June 11.