)
Shares of real estate and infrastructure companies are continue trading higher by up to 20%, extending their previous day’s rally, on the news that the government had relaxed foreign direct investment (FDI) rules in the construction sector by reducing minimum built up area as well as capital requirement and easing exit norms.
Unitech, IVRCL Infrastructure, Hindustan Construction Company (HCC), GVK Power and Infrastructure, National Building Construction Company (NBCC), D B Realty, Patel Engineering, Shriam EPC and Gayatri Projects are up 4-10% on the Bombay Stock Exchange (BSE).
S&P BSE Realty index, the largest gainer among sectoral indices, was up 1.7% compared to 1.3% rise in the S&P BSE Sensex at 1143 hours. The realty index had surged 3.4% on Thursday.
“With relaxations like dropping the minimum 10-hectare rule for serviced housing plots, slashing the minimum floor area for construction development project to 20,000 sq m from 50,000 sq m to be eligible for overseas investment, halving the minimum FDI amount to $5 million from $10 million, easing the exit norms - there would be definitely more and easy foreign fund flows into the sector,” said Mr Murali, managing director, Shriram Properties.
Among the individual stocks, Shriram EPC has locked in upper circuit of 20% to Rs 39.60 on BSE. Patel Engineering soared 10% to Rs 103, followed by GVK Power and Infrastructure (8.5% to Rs 12), HCC (8% at Rs 31.90), Unitech (7% to Rs 20.65) and Sunil Hitech Engineering (6% at Rs 160).
Oberoi Realty, Housing Development and Infrastructure (HDIL), Anant Raj Industries, Indiabulls Real Estate, Godrej Properties and DLF are up 1-3% on BSE.
Unitech, IVRCL Infrastructure, Hindustan Construction Company (HCC), GVK Power and Infrastructure, National Building Construction Company (NBCC), D B Realty, Patel Engineering, Shriam EPC and Gayatri Projects are up 4-10% on the Bombay Stock Exchange (BSE).
S&P BSE Realty index, the largest gainer among sectoral indices, was up 1.7% compared to 1.3% rise in the S&P BSE Sensex at 1143 hours. The realty index had surged 3.4% on Thursday.
“With relaxations like dropping the minimum 10-hectare rule for serviced housing plots, slashing the minimum floor area for construction development project to 20,000 sq m from 50,000 sq m to be eligible for overseas investment, halving the minimum FDI amount to $5 million from $10 million, easing the exit norms - there would be definitely more and easy foreign fund flows into the sector,” said Mr Murali, managing director, Shriram Properties.
Among the individual stocks, Shriram EPC has locked in upper circuit of 20% to Rs 39.60 on BSE. Patel Engineering soared 10% to Rs 103, followed by GVK Power and Infrastructure (8.5% to Rs 12), HCC (8% at Rs 31.90), Unitech (7% to Rs 20.65) and Sunil Hitech Engineering (6% at Rs 160).
Oberoi Realty, Housing Development and Infrastructure (HDIL), Anant Raj Industries, Indiabulls Real Estate, Godrej Properties and DLF are up 1-3% on BSE.
