Indiabulls Real Estate, DLF, Sobha shares among others rose up to 11% in last hour of trade; here’s why
Shares of South India-based Sobha ended 5.31% higher at Rs 683.20 on BSE. Market cap of the firm climbed to Rs 73,922 crore.
- Sep 25, 2023,
- Updated Sep 25, 2023 6:06 PM IST
Shares of real estate firms such as Indiabulls Real Estate Ltd, Sobha Ltd, DLF, Prestige Estates and Godrej Properties among others saw a stellar rally in the last hour of trade today amid a report that said the government was planning to spend Rs 60,000 crore ($7.2 billion) to provide subsidised loans for small urban housing over the next five years.
Indian banks are likely to roll out the scheme in a couple of months, ahead of key state elections later this year and general elections due in mid-2024, said a report by Reuters.
Enthused by the likely roll-out of the scheme, shares of South India-based Sobha ended 5.31% higher at Rs 683.20 on BSE. Market cap of the firm climbed to Rs 73,922 crore. The stock climbed 6.16% intraday to Rs 688.75 in Monday’s trade.
Similarly, DLF shares ended 1.19% higher at Rs 522.05. Market cap of the realty firm rose to Rs 1.29 lakh crore. DLF shares hit an intraday high of Rs 527.20, rising 2.19% on BSE.
Shares of Indiabulls Real Estate ended 8.84% higher at Rs 85.54 on BSE. Market cap of the firm climbed to Rs 4633.49 crore. The stock climbed 10.70% intraday to Rs 87 in Monday’s trade
Shares of another realty player Prestige Estates closed 1.19% higher at Rs 609.50 Market cap stood at Rs 24,432 crore. Prestige Estates shares hit an intraday high of Rs 527.20, rising 2.19% on BSE.
Oberoi Realty stock ended 1.20% higher at Rs 1132.45on BSE. Market cap of the firm rose to Rs 41,176 crore. The stock surged 1.78% intraday to Rs 1139 on BSE.
Shares of Godrej Properties closed 3.79% higher at Rs 1596.95. Market cap of the firm rose to Rs 44,401 crore. Ahead of the market closing, the stock hit an intraday high of Rs 1612.50, rising 4.79% on BSE.
Macrotech Developers stock ended 3.51% higher at Rs 766.55. Market cap of the firm rose to Rs 73,922 crore. The stock surged 3.73% intraday to Rs 768.20 BSE.
Prime Minister Narendra Modi announced the plan to provide subsidy on housing loan in a speech in August to mark the country's Independence Day, but its details have not been previously reported.
"We are coming up with a new scheme in the coming years that will benefit those families that live in cities but are living in rented houses, or slums, or chawls and unauthorised colonies," Modi had said in his Independence Day speech this year.
An annual interest subsidy of between 3-6.5% on up to Rs 9 lakh rupees of the loan amount. Housing loans below Rs 50 lakh availed for a tenure of 20 years will be eligible for the proposed scheme, the Reuters report said. The scheme could benefit 2.5 million loan applicants in low-income groups in urban areas but the quantum of subsidised credit will depend on demand for such homes, the official said.
Shares of real estate firms such as Indiabulls Real Estate Ltd, Sobha Ltd, DLF, Prestige Estates and Godrej Properties among others saw a stellar rally in the last hour of trade today amid a report that said the government was planning to spend Rs 60,000 crore ($7.2 billion) to provide subsidised loans for small urban housing over the next five years.
Indian banks are likely to roll out the scheme in a couple of months, ahead of key state elections later this year and general elections due in mid-2024, said a report by Reuters.
Enthused by the likely roll-out of the scheme, shares of South India-based Sobha ended 5.31% higher at Rs 683.20 on BSE. Market cap of the firm climbed to Rs 73,922 crore. The stock climbed 6.16% intraday to Rs 688.75 in Monday’s trade.
Similarly, DLF shares ended 1.19% higher at Rs 522.05. Market cap of the realty firm rose to Rs 1.29 lakh crore. DLF shares hit an intraday high of Rs 527.20, rising 2.19% on BSE.
Shares of Indiabulls Real Estate ended 8.84% higher at Rs 85.54 on BSE. Market cap of the firm climbed to Rs 4633.49 crore. The stock climbed 10.70% intraday to Rs 87 in Monday’s trade
Shares of another realty player Prestige Estates closed 1.19% higher at Rs 609.50 Market cap stood at Rs 24,432 crore. Prestige Estates shares hit an intraday high of Rs 527.20, rising 2.19% on BSE.
Oberoi Realty stock ended 1.20% higher at Rs 1132.45on BSE. Market cap of the firm rose to Rs 41,176 crore. The stock surged 1.78% intraday to Rs 1139 on BSE.
Shares of Godrej Properties closed 3.79% higher at Rs 1596.95. Market cap of the firm rose to Rs 44,401 crore. Ahead of the market closing, the stock hit an intraday high of Rs 1612.50, rising 4.79% on BSE.
Macrotech Developers stock ended 3.51% higher at Rs 766.55. Market cap of the firm rose to Rs 73,922 crore. The stock surged 3.73% intraday to Rs 768.20 BSE.
Prime Minister Narendra Modi announced the plan to provide subsidy on housing loan in a speech in August to mark the country's Independence Day, but its details have not been previously reported.
"We are coming up with a new scheme in the coming years that will benefit those families that live in cities but are living in rented houses, or slums, or chawls and unauthorised colonies," Modi had said in his Independence Day speech this year.
An annual interest subsidy of between 3-6.5% on up to Rs 9 lakh rupees of the loan amount. Housing loans below Rs 50 lakh availed for a tenure of 20 years will be eligible for the proposed scheme, the Reuters report said. The scheme could benefit 2.5 million loan applicants in low-income groups in urban areas but the quantum of subsidised credit will depend on demand for such homes, the official said.