Realty rally likely to continue as Street upbeat on prospects

Analysts say investors should moderate return expectations; DLF and Macrotech top picks

The BSE Realty was the best performing sectoral index over the past year, generating returns of 129 per cent. The September quarter results of leading players, registration data, and bookings are a signpost for the rally’s perpetuation. Despite sharp outperformance, brokerages have picked the sector as a key bet for the year ahead.

Goldman Sachs, which had recently downgraded India after region-leading 31 per cent gains in 2021, underscored real estate as one of its four preferred sectors. The preference comes even as it believes the risk-reward for Indian equities is less favourable at existing levels.

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