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Sobha jumps after brokerage maintains overweight rating

Capital Market 

Sobha climbed 3.65% to Rs 405.80 a foreign broker reportedly maintained an overweight rating on the stock with a target of Rs 613 per share.

The broker reportedly believes that the real estate company's the second half of the year is expected to be better than the first half, driven by volume growth in the residential segment. Business fundamentals are likely to remain strong, with a steady pace of new launches, it added.

Meanwhile, the S&P BSE Sensex was up 57 points or 0.14% to 41,077.82.

Shares of Sobha gained 5.78% in two trading sessions to its current market price of Rs 405.80 from its recent closing low of Rs 383.60 on Tuesday, 26 November 2019.

In the past one month, shares of Sobha fell over 6%, underperforming the Nifty Realty index's 4.19% rise in the same period.

On the technical front, the stock's RSI (relative strength index) stood at 44.103. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading below its 50-day moving average (DMA) placed at Rs 444.37 as well as below its 200 DMA placed at Rs 487.52.

Sobha's consolidated net profit rose 9.1% to Rs 67 crore on 19% jump in net sales to Rs 783.90 crore in Q2 September 2019 over Q2 September 2018.

Sobha is engaged in the construction and development of residential and commercial projects.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 28 2019. 13:22 IST