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Realty shares in demand

DLF, HDIL,Indiabulls Real Estate, Sobha Develpers, Unitech abd Peninsula Land are up 3-10% on BSE.

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SI Reporter Mumbai
Shares of real estate companies have rallied up to 10% on hopes of a rollback in some of the Reserve Bank of India (RBI’s) recent liquidity-tightening measures.

DLF, Housing Development Infrastucture (HDIL) and Indiabulls Real Estate have rallied between 9-10%, while Sobha Develpers, Unitech, Peninsula Land, DB Realty and Anant Raj Industries are up 3-7% on the Bombay Stock Exchange (BSE).

The BSE Realty index, the second largest sectoral gainer after Bankex, was up 5.3% as compared to 1.9% rise in benchmark S&P BSE Sensex at 1400 hours.

Dr. Raghuram Rajan, the new governor of the RBI, made several positive announcements on Wednesday, his first day in office, including to allow banks to swap their USD liabilities against FCNR(B) (foreign currency non-resident) deposits at 3.5% per annum for three years (market rates: 6-8%).

This, along with a few other measures, could attract $ 10 billion of forex inflows in next three months and could be a material near-term positive for the Indian rupee (INR), according to analyst at Barclays Bank PLC.

A meaningful improvement in INR sentiment would raise the likelihood of a rollback in September-October of some of the RBI’s recent liquidity-tightening measures, he adds.

The rupee, which had touched an all-time intra-day low of 68.85 to a dollar on August 28, today strengthened by hefty 138 paise to trade at 65.69 against the dollar at the Interbank Foreign Exchange market after fresh measures by the RBI to stem the currency's slide.
 
 

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First Published: Sep 05 2013 | 2:08 PM IST

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