Real estate scrips soar

Foreign investment in real estate opens the floodgates

Stocks of retail housing and real estate development companies hit the roof at the bourses on the government's announcement.

Mahindra Gesco Developers, Morarjee Real Estates, Dhruv Estates, Prime properties, H B Real Estate Developers and DS Kulkarni Developers, Ansal Properties, Ansal Housing and Construction, BSEL Infrastructure Realty and Asiyan Housing and Finance were locked at the upper end of the circuit filter after the announcement.

The HB Estate Developers and Dhruv Estates scrips closed 20 per cent higher each, at Rs 10.88 and Rs 7.78, respectively. Prime Properties was frozen at 20 per cent filter, at Rs 24.75 while Lok Housing hit the five per cent limit to close at Rs 20.14.

Among the big value stocks, Mahindra Gesco Developers and Ansal Properties hit the five per cent upper limit each to close at Rs 137.90 and Rs 135, respectively and Morarjee Real Estate gained 16.90 per cent to Rs 93.75 at close.

But traded volumes of most real estate-related stocks declined on the Bombay Stock Exchange and the National Stock Exchange because the stocks were frozen.

The volumes in DS Kulkarni Developers, Ansal Housing Construction, Radhe Developers and Ashiana Housing Finance doubled, while the Mahindra Gesco, Lok Housing, Ansal Buildwell counters reported declines in volumes.