With rising property prises, the BSE Realty Index is likely to break its year-long lull and outshine others on the Dalal Street in the coming months, say analysts.
"The realty index is likely to grab the centre stage in the comings two months, riding high on the spurt in property prices and liquidity in the market," CNI Research CMD Kishore P Ostwal said.
The sectoral index had touched a 52-week high on October 21, 2009. However, since then, it has been an underperformer among its peers like auto and consumer durables indices, which recently touched their year highs after the Sensex crossed the psychological 20,000 mark on September 21 this year.
"The appetite for realty stocks has not been good. The stocks are certainly being undervalued. But with real estate rates increasing, the situation is bound to change in the coming months," Ashika Brokers Research Head Paras Bothra said.
Realty majors like DLF and Unitech have underperformed the broader market for almost an year.
DLF had touched its year high on October 21 last year. Since then till date, the scrip had plunged nearly twenty per cent while the broader gauge Sensex witnessed a gain of a whopping 21 per cent during the period under review.
Similarly, another major player in the realty sector, Unitech has also seen a dull year so far, tanking over ten per cent from the late October last year till now.
