Realty stocks extend rally as easing Fed rate concerns boost sentiment

Real estate stocks witnessed broad-based buying on Friday, with the Nifty Realty index climbing 3.13% to 935.30 as improving global sentiment lifted the sector.

The sectoral index has climbed 6.78% over the two sessions. It has gained 23.19% in the past three months, although it remains down 4.04% over the past one year.

Brigade Enterprises led the gains, rising 5.50%. Godrej Properties added 4.63%, while DLF climbed 3.84%. Prestige Estates Projects advanced 3.48%, Anant Raj gained 3.06% and Aditya Birla Real Estate rose 2.62%.

Among the other constituents, Oberoi Realty increased 2.42%, Phoenix Mills gained 2.30%, Lodha Developers advanced 2.21% and Sobha added 2.19%.

 

The rally came as softer US economic data released last week eased concerns over an immediate interest rate hike by the US Federal Reserve, improving risk appetite across global markets.

Expectations of a more stable interest rate environment are generally positive for emerging markets such as India, as they support foreign capital inflows. The real estate sector is also particularly sensitive to interest rate expectations, as borrowing costs influence both housing demand and developers' financing costs.

The latest rally also signals a turnaround in realty stocks after the sector remained under pressure for nearly two years.

Powered by Capital Market - Live News