BJP's Maharashtra win lifts Nifty Realty 3%; Macrotech Developers, Prestige Estates, Godrej Prop surge 1-4%

Shares of real estate companies, especially those based out of Maharashtra were soaring in trade on November 25, surging as much as 7 percent amid hopes of infrastructure getting back in focus after the BJP-led Mahayuti alliance's landslide victory in the state.

Names like Godrej Properties, DLF, Mahindra Life, Prestige Estates, Man Infra and Raymond led gains in the sector after soaring 4-7 percent while others like Brigade Enterprises, Oberoi Realty, Macrotech Developers and Phoenix Mills followed close with gains of 1-3 percent. The sharp surge in these realty names helped the Nifty Realty index clock in an over 3 percent spike to emerge as the second best performing sector in trade today.

For Maharashtra, the last five years were characterised by political instability, with frequent musical chairs at work for the CM post. However, that all seems to have come to an end now as the BJP-led Mahayuti alliance's landslide victory in Maharashtra ends the chronic instability in one of India’s most industrialized and economically important states, brokerage firm Motilal Oswal Financial Services noted. This victory, according to Emkay Institutional Equities bodes well for Maharashtra, as the brokerage believes a consolidated centre and state politics should allow a pick-up in stalled infra development and other pending issues, bolstering sentiment for real estate companies.

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