Realty stocks hit the roof after banks allowed to invest in REITs

Real estate index climbs 2% as experts say instrument could become a reality soon

Realty stocks surged on Thursday after the Reserve Bank of India (RBI) allowed domestic lenders to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Despite volatility in the broader market, the BSE Realty, a gauge for the performance of real estate stocks, gained two per cent, the most among sectoral indices. 

Shares of DLF, which is planning to launch a REIT soon, surged 4.5 per cent. Shares of Unitech and Prestige went up 3.25 per cent and 1.92 per cent, respectively.

RBI has proposed that banks could invest in REITs and InvITs within the umbrella limit provided to