Twelve realty stocks rose by 0.39% to 12.53% at 10:50 IST on BSE after HDFC and State Bank of India cut interest rates on housing loans.
Sunteck Realty (up 12.53%), Housing Development and Infrastructure (HDIL) (up 4.02%), Parsvnath Developers (up 3.78%), Indiabulls Real Estate (up 1.88%), D B Realty (up 1.83%), Unitech (up 1.70%), Peninsula Land (up 1.47%), DLF (up 0.63%), Godrej Properties (up 0.48%), Oberoi Realty (up 0.48%), Phoenix Mills (up 0.42%) and Prestige Estates (up 0.39%), edged higher. However, Anant Raj (down 1.46%) and Sobha (down 2.33%), edged lower.
The S&P BSE Realty index was up 1.03% at 1,805.77. It outperformed the S&P BSE Sensex, which was up 0.04% at 28,891.48.
The S&P BSE Realty index had outperformed the market over the past one month till 10 April 2015, rising 4.12% compared with 0.59% rise in the Sensex. The index had also outperformed the market in past one quarter, rising 16.67% as against Sensex's 5.18% rise.
Housing finance major HDFC announced a reduction in its retail prime lending rate by 20 basis points, with effect from today, 13 April 2015. The reduction in the retail prime lending rate (RPLR) will also be applicable on loans to Non-Resident Indians (NRIs). HDFC has also revised its deposit rates.
Meanwhile, some media reports suggested that State Bank of India (SBI) reduced the interest rate on home loans by 10 basis points (bps) to 9.9% per annum with effect from today, 13 April 2015.
Purchases of both residential and commercial property are largely driven by finance.
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