Nifty Realty index touches 15-year high, up 84% since March
The Nifty Realty index soared to a 15-year high of 684.30 during Wednesday's intra-day trading, fueled by a promising outlook for real estate firms. The Nifty Realty index concluded with a positive gain of 2.95%, closing at 683.05. Concurrently, Nifty50 index finished 1.19% up at 19,675.45, and Sensex rose by 1.14% to 65,675.93. From its low on March 28, 2023, the Nifty Realty index has skyrocketed 84%, in contrast to a nearly 16% growth in the Nifty50.
Top gainers in Nifty Realty index
All 10 constituents of the Nifty Realty Index ended in the green territory on Wednesday, with at least five of them recording gains above 2%. Oberoi Realty's shares jumped by 5.62%, Phoenix Mills by 5.58%, Brigade Enterprises by 4.7%, Prestige Estates Projects by 3.51%, and Sobha by 2.89%.
What's behind the rally?
The surge in the Nifty Realty index signals a positive sentiment among real estate developers. This optimism stems from the easing inflation in both India and the US, suggesting that construction costs might stabilize or decrease. As a result, builders anticipate favorable conditions ahead. This upbeat scenario could influence the Reserve Bank of India (RBI) to consider a more accommodative or less aggressive stance in its forthcoming monetary policy meeting, given the improving economic landscape within the real estate sector.
