Realty stocks closed up to 8.2 per cent higher on Thursday after the government approved a Rs 25,000 crore fund for 1,600 stalled housing projects, which is expected to jumpstart consumption and give a boost to real estate and allied sectors.
Shares of NBCC India jumped 8.20 per cent, Indiabulls Real Estate rose 4.94 per cent, The Phoenix Mills Ltd went up 3.11 per cent, Sobha climbed 2.34 per cent and Prestige Estates Projects ended up 1.48 per cent on the BSE.
Among others, Oberoi Realty went up 0.83 per cent, DLF rose 0.44 per cent and Godrej Properties went up 0.19 per cent.
The realty index closed at 2,121.04, up 0.78 per cent.
"On the domestic front, the measures announced by the Finance Minister yesterday helped revive interest in real estate related companies as well as finance companies with exposure in real estate, including some of the housing finance stocks," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd said.
Among housing finance stocks, PNB Housing Finance gained 4.17 per cent and LIC Housing Finance rose 2.87 per cent.
"Reforms and earnings are the market drivers, the measures to support realty sector augers well for the sector to outperform. The proposed measure will help to start the recovery of stalled projects and can see a ripple effect in NBFCs, banks and cement sector," Geojit Financial Services Head of Research Vinod Nair said.
The government on Wednesday approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared NPAs or admitted for insolvency proceedings, as it looks to boost growth by steering consumption in real estate and associated sectors.
The move is likely to help 4.59 lakh housing units across the country.
Real estate developers welcomed the government's move to help complete stalled housing projects, saying it will solve the long-pending problem of homebuyers.
"It's a very welcome change from the initial announcement (of September 14). Now the only criteria for eligibility is networth positive projects," real estate developers association CREDAI Chairman Jaxay Shah said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)