Godrej Properties (up 0.2%), Omaxe (up 0.28%), Anant Raj Industries (up 0.86%), Oberoi Realty (up 1.35%), DLF (up 1.86%), Unitech (up 1.96%), HDIL (up 4.4%), and edged higher. Indiabulls Real Estate shed 0.88%.
The BSE Realty index was up 1.2% at 2,056.47 and was the second biggest gainer among the 13 sectoral indices on BSE. It outperformed the Sensex, which was up 0.72% at 20,432.63
The BSE Realty had outperformed the market over the past one month till 17 May 2013, rising 9.14% compared with the Sensex's 8.30% rise. The index had, however, underperformed the market in past one quarter, falling 0.23% as against Sensex's 4.20% rise.
Realty stocks extended recent gains as data showing a sharp fall in wholesale price inflation in April 2013 raised hopes that the RBI may further cut policy rates to perk up economic growth. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
The annual rate of inflation, based on monthly wholesale price index (WPI), eased sharply to 4.89% in April 2013, from 5.96% in March 2013, data released by the government on 14 May 2013, showed. Core inflation or non-food manufacturing inflation declined further to 2.74% in April 2013 from 3.41% in March 2013.
Meanwhile, the Reserve Bank of India Deputy Governor H.R. Khan on 14 May 2013 said that the RBI has allowed companies building low-cost housing projects to raise overseas loans.
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