Shares of nine real estate companies fell by 0.63% to 3.78% at 11:51 IST on BSE after the Reserve Bank of India kept key rates unchanged in its monetary policy review today, 7 April 2015.
Indiabulls Real Estate (down 2.76%), DLF (down 2.57%), Unitech (down 1.42%), Housing Development and Infrastructure (HDIL) (down 1.75%), Orbit Corporation (down 3.5%), Oberoi Realty (down 0.63%), Sobha (down 3.1%), Godrej Properties (down 1.47%), D B Realty (down 3.78%) and Prestige Estates (down 2.77%) edged lower. Parsvnath Developers rose 1.27%.
The BSE Realty index was down 1.58% at 1,771.78 and was the biggest loser among the sectoral indices on BSE. It underperformed the Sensex, which was up 0.04% at 28,515.82.
The BSE Realty index outperformed the market over the past one month till 6 April 2015, rising 0.29% compared with 3.21% decline in the Sensex. The index had also outperformed the market in past one quarter, gaining 18.61% as against Sensex's 5.62% rise.
The Reserve Bank of India (RBI) in its policy review today, 7 April 2015, kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.5%. Consequently, the reverse repo rate under the LAF will remain unchanged at 6.5%, and the marginal standing facility (MSF) rate and the Bank Rate at 8.5%. Purchases of both residential and commercial property are largely driven by finance.
RBI also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liability (NDTL) and continued to provide liquidity under overnight repos at 0.25% of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75% of NDTL of the banking system through auctions and continued with daily variable rate repos and reverse repos to smooth liquidity.
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