Fourteen realty stocks rose by 0.67% to 4.44% at 14:40 IST on BSE on hopes that the Reserve Bank of India could ease interest rates further after latest data showed that consumer price inflation eased to a six-month low in March.
Housing Development and Infrastructure (HDIL) (up 4.44%), Peninsula Land (up 4.17%), Parsvnath Developers (up 3.87%), Prestige Estates Projects (up 2.92%), DLF (up 2.72%), Indiabulls Real Estate (up 2.41%), Unitech (up 2.39%), Oberoi Realty (up 2.21%), D B Realty (up 1.80%), Phoenix Mills (up 1.19%), Sobha (up 1%), Anant Raj (up 0.89%), Mahindra Lifespace Developers (up 0.86%) and Godrej Properties (up 0.67%), edged higher. Sunteck Realty was down 0.12%.
The S&P BSE Realty index was up 2.12% at 1,286.47. It outperformed the S&P BSE Sensex, which was up 1.98% at 25,643.59.
The S&P BSE Realty index had outperformed the market over the past one month till 12 April 2016, rising 6.81% compared with 1.73% rise in the Sensex. The index had, however, underperformed the market in past one quarter, falling 3.29% as against Sensex's 1.88% rise.
Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
The latest data showed that inflation based on consumer price index (CPI) dipped to six-month low of 4.83% in March 2016, with the index easing for second straight month.
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