Real estate stocks gained today after FM Nirmala Sitharaman announced an alternative investment fund to help the real estate sector finish pending housing projects. The government will infuse Rs 10,000 crore in this fund.
State Bank of India, Life Insurance Corporation (LIC) and other sovereign funds will add to this fund to take it to Rs 25,000 crore and beyond. Nifty Realty index rose 2.7% in trade today.
Indiabulls Real Estate Limited, Sobha Limited, Prestige Estates and Godrej Properties gained between 2% and 5% on BSE. Housing finance shares also rallied with PNB Housing Finance and LIC Housing Finance gaining up to 5%. NBCC too rose over 17% to Rs 45 on BSE.
Sunteck Realty rose 2.41 per cent , DLF (1.68 per cent) , Oberoi Realty ( 1.26 per cent) and Brigade Enterprises (1.00 per cent) too were trading higher.
BSE realty index rose 3% to 2,167 points compared to the previous close of 2,104. Mustafa Nadeem, CEO at Epic Research said, "This is good news for realty space. We may see a revival in demand from specifically home buyers that are from middle income group. These houses would rather have a very high impact in projects that are in tier 2 and tier 3 cities. It has seen very fast growth in the last few years while urban development. So it's a win-win situation for realty space companies and the economy. "
Meanwhile, Sensex scaled a fresh all time high of 40,676 in the early session and Nifty's reached intraday high of 12,021.40, mere 81.65 points away from the all-time high of 12,103.05 hit on June 3.
By Aseem Thapliyal