BSE Realty Index Hits Over 10-Year High
Shares of realty companies surged, with the S&P BSE Realty index hit a 10-year high, as construction activities seem likely to pick pace with states easing lockdown curbs amid a steady fall in covid cases. <span style="font-weight: 400;">The realty index hit an intra-day high of 3040.82 point
Published -
Jul 14, 2021 4:02 AM
Shares of realty companies surged, with the S&P BSE Realty index hit a 10-year high, as construction activities seem likely to pick pace with states easing lockdown curbs amid a steady fall in covid cases. The realty index hit an intra-day high of 3040.82 points, it’s highest since February 2010. Over the last two months, the index has risen 27% compared to an 8% gain in the benchmark Sensex. Among stocks, DLF, Godrej Properties, Oberoi Realty, Phoenix Mills, Prestige Estate, Indiabulls Real Estate, Sobha, Sunteck Realty have advanced 10-47% during the period. After the lockdown, analysts say, property registrations saw a sharp recovery in June. Record low interest rates, good schemes, discounts, are among the key drivers boosting outlook for the sector even as stamp duty cuts have been rolled back. Real estate has seen a down cycle of more than five years following the implementation of RERA, demonetisation, credit issues, and then pandemic. As a result, small players took a hit, losing market share. Along with this, customer preference for ready-to-move in properties and brand loyalty favour listed real-estate players, analysts said. According to a CLSA report, top developers aim to double their sales over the next three to four years, benefiting from strong demand, affordability and industry consolidation. Most of them have been targeting strong cash flow generation and looking to reduce debt. They also aim to ramp up new project acquisitions. Rising vacancies mar the near-term outlook in the office segment but it remains positive for the long term.
Tags : News/Views BSE Shares High Hits Realty Index 10-Year