Nifty Realty index rallies 24% so far in April; what's driving sector?

Sobha, Godrej Properties, Phoenix, Anant Raj, Lodha Developers, Oberoi Realty and Aditya Birla Real Estate were up between 3 per cent and 4 per cent on the NSE in Tuesday's intra-day trade.

Nifty Realty index today

 

Shares of real estate companies continued their upward movement, with the Nifty Realty index surging 3 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day trade after Oberoi Realty released strong operational update for March quarter (Q4FY26) and the financial year 2025-26 (FY26).

 

At 11:10 AM on Tuesday, the Nifty Realty index was the top gainer among sectoral indices, up 3 per cent, as compared to 0.75 per cent rise in the Nifty 50. Thus far in the month of April, the realty index has bounced back 24 per cent.

 

However, thus far in the calendar year 2026 (CY26), the Nifty Realty index has underperformed the market by falling 8 per cent, as against 6 per cent decline in the benchmark index. The realty index quotes 23 per cent below its 52-week high of 1,047.70 touched on June 9, 2025.

 

 

Meanwhile, Sobha, Godrej Properties, Phoenix, Anant Raj, Lodha Developers, Oberoi Realty and Aditya Birla Real Estate were up between 3 per cent and 4 per cent on the NSE in intra-day trade. These stocks have bounced back up to 37 per cent from their respective 52-week lows touched during the month of March 2026.  READ STOCK MARKET UPDATES LIVE

What’s driving real estate stocks?

 

Oberoi Realty released strong operational update for Q4FY26 and FY26. The company recorded presales for Q4FY26 at ₹1,673 crore, was up 96 per cent year-on-year (YoY) (100 per cent quarter-on-quarter (QoQ)). Presales for FY26 at ₹5,447 crore, was up 3 per cent YoY, against ₹5,281 crore in FY25.

 

Oberoi Realty showcased a strong Q4FY26 despite absence of project launches due to delays. During FY26 the company secured three project developments across Southern and Western Mumbai and a significant land parcel near Bandra Railway station. Going ahead in FY27E the company has lined up multiple project launches which will be a key growth driver over the medium term, ICICI Securities said.

 

Meanwhile, Godrej Properties said its business development additions with a future booking value potential of over ₹42,000 crore in FY2026 will ensure that the company continue to have a strong launch pipeline in the years ahead and the combined operating cash flow of over ₹15,000 crore the company has generated in the past two financial years enables it to invest for growth while continuing to strengthen balance sheet.  READ | Nifty SmallCap hits 200-DMA; these 3 stocks can surge up to 50%: Analyst

Kotak Institutional Equities on real estate sector

 

Residential real estate stocks in India have corrected by 15-30 per cent since the start of CY26, more recently due to geopolitical tensions in West Asia and the consequent effect on demand for new homes. 

 

According to analysts at Kotak Institutional Equities, the stock correction is excessive - assigning value only to the more certain annuity and hospitality businesses, with little credit for cash flows from the development business, and near-zero value being assigned to land. 

 

“We note that investor sentiment does oscillate aggressively during economic shocks, noting the high-value discretionary nature of home purchases as well as the high beta nature of the real estate sector. However, a look at the historical sales print post such economic shocks does not reveal a stark trend of weak home sales,” the brokerage firm said in the real estate sector report.

 

Analysts do see execution challenges - a lack of availability of labor force, who are migrating back to villages due to low LPG supplies, or the shortage of tiles due to shutdown of manufacturing facilities in Morbi. There would also be higher cost incidence across cement and steel on account of increased freight and fuel costs. 

 

“We believe that the margin impact from such cost increases would be 200-300 bps, which could increase up to 500 bps in the scenario of elongated tensions. We note that Bengaluru players have previously reported lower margins for projects sold just before Covid that are being delivered now–accordingly, lower-margin players such as Brigade and Sobha could see a higher impact from the cost uptick,” Kotak Institutional Equities said.

 

The highly discretionary nature of home purchases has always made the Street nervous of real estate stocks during periods of economic uncertainty, it added.  ========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.