Realty index climbs 7 pc
Realty sector stocks were back in the limelight on the bourses after the RBI unexpectedly cut its main short-term lending rate to infuse liquidity into the financial system, even as realty majors posted disappointing earnings.business Updated: Nov 03, 2008 11:43 IST
Realty sector stocks were back in the limelight on the bourses on Monday after the Reserve Bank of India on Saturday unexpectedly cut its main short-term lending rate to infuse liquidity into the financial system, even as realty majors posted disappointing earnings.
The BSE Realty sector index rebounded to quote 158.61 points, or 6.50 per cent higher at 2,136.85, after all components were trading in positive zone.
As the realty index remained the second-best performer, after banking sector, Akruti City, DLF Ltd, Unitech and Parsvnath stocks recovered sharply.
Trading sentiment turned better after the Reserve Bank of India slashed key interest rates to infuse more liquidity into the banking system and ease credit.
Country's largest developer DLF Ltd, despite disappointing earnings, shot up by Rs 18.65 at Rs 238.90 on the BSE and nearly 2.50 lakh shares changed hands at 1030 hrs.
"Cut in interest rates by the central bank will bring more funds into the system, triggering buying in interest-sensitive, recently, battered realty sector stocks," said Manoj Choraria, a Delhi-based stock broker.
Akruti City stocks too were in good demand and traded Rs 7.10 higher at Rs 688, while Unitech Ltd gained Rs 2.55 at Rs 50.60 after real estate major's net profit declined by 12.48 per cent for the July-September quarter.
Other gainers were Ansal Infra by Rs 3.65 at Rs 47.20, India bull Realty by Rs 5 at Rs 124.70, Omax by Rs 4.30 at Rs 62.15, Sobha Developers by Rs 5.20 at Rs 117.05, Parsvnath by Rs 2.45 at Rs 43.