Seven realty stocks rose 0.15% to 6.06% at 14:55 IST on BSE after the Reserve Bank of India hiked the policy repo rate by 25 basis points while maintaining its neutral stance.
Peninsula Land (up 6.06%), Indiabulls Real Estate (up 1.39%), Unitech (up 2.21%), Godrej Properties (up 2.85%), Phoenix Mills (up 2.91%), DLF (up 0.15%) and Oberoi Realty (up 2.03%) edged higher. Prestige Estates Projects (down 0.78%) and Housing Development and Infrastructure (down 3.93%) fell.
The S&P BSE Realty index was up 25.81 points or 1.22% at 2,142.61. It outperformed the Sensex, which was up 223.27 points or 0.64% at 35,126.48
Purchases of both residential and commercial property are largely driven by finance.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, 6 June 2018 the Monetary Policy Committee (MPC) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25%. Consequently, the reverse repo rate under the LAF stands adjusted to 6%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50%.
The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
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