Nifty Realty Index jumps 5% to reach 15-year high
The Nifty Realty Index soared over 5% on Tuesday, with select shares surging by an impressive 18%. All the 10 scrips listed in the index are trading higher, making it the top sectoral gainer for the day. The index has gained over 64% since March this year when it recorded its 52-week low. Today's rally allows it to touch its highest level in 15 years. Experts credit this growth to the Reserve Bank of India's decision to maintain interest rates.
Strong quarterly updates signal positive Q2 earnings
Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, told Livemint that strong quarterly business updates from real estate companies indicate better-than-expected Q2 earnings. Technically, the Nifty Realty Index has experienced a breakout near 560 levels and is now trading around 610. If this trend persists, it could rally toward levels of 720-740 soon, Tapse added.
Prestige Estates Projects leads gains with over 18% increase
Prestige Estates Projects was the top gainer among the 10 constituents, touching day's high with an 18.77% rise. The company's share price hit a 52-week high during today's trading session. Prestige Estates Projects reported a more than two-fold increase in sales bookings to Rs. 7,092 crore in Q2. The Bengaluru-based company attributes this growth to strong demand for residential properties. Prestige Estates was trading at Rs. 746.85 apiece (11.39%), at the time of writing.
Sobha Ltd. and DLF reach new heights
Sobha Ltd. and DLF shares also reached their respective 52-week highs during Tuesday's trade. Other stocks, such as Godrej Properties Ltd., Oberoi Realty Ltd., Macrotech Developers, and Phoenix Mills, were close to their 52-week high levels, gaining between 2% and 7%. Technical analysts believe that the Nifty Realty Index has resumed its uptrend, backed by broader momentum from stocks within the sector.
Analysts recommend stock-specific buying opportunities
According to Livemint, Ruchit Jain, Lead Research Analyst at 5paisa, anticipates the uptrend in the real estate sector to continue and suggests looking for stock-specific buying opportunities within the space. Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, also notes widespread buying activity in the realty sector, outperforming the overall market. Bhosale recommends DLF and Godrej Properties as top picks from this sector.
