The shares of several real estate companies jumped on September 15, pushing the Nifty Realty index up around 2.6 percent. The index emerged as top sectoral gainer on September 15.
The Nifty Realty index rose to 908 in the afternoon, the highest level seen by the index in 13 sessions. Here are three reasons which may be boosting the sector.
US Fed rate cut hopes:
The US Federal Reserve is set to hold its FOMC meeting from September 16 to September 17. Analysts increasingly expect the American central bank to cut its rates this time, amid weakening jobs data and rising pressure from President Donald Trump's administration.
The US economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, according to the latest data from Labor Department's Bureau of Labor Statistics. This further hiked rate cut hopes.
While Indian real estate players are mostly domestic market oriented, analysts expect a rate cut by the US Federal Reserve to be followed by the same by its Indian peer RBI. A rate cut by RBI’s Monetary Policy Committee will reduce home loans EMIs for home buyers, spurring demand and thereby boosting real estate stocks.
UP govt plans changes to bylaws for Noida, other areas, says report:
The Yogi Adityanath-led Uttar Pradesh government is planning to remove the ground coverage limits and increase the floor area ratio for industrial, residential and commercial projects as part of its new common building bylaws for the three industrial development authorities—Noida, Greater Noida, and YEIDA, the Times of India reported citing sources.
This will likely ease construction rules, boost investment and end confusion caused by differing regulations across authorities, the report further said, adding that the prospective rules will allow both vertical and lateral growth.
Moneycontrol couldn't independently verify the report.
If approved, these reforms will likely benefit the real estate players active in these areas, including Godrej Properties and DLF.
Value Buying:
The Nifty Realty index has sharply corrected from its record high level. The sectoral index is currently down more than 20 percent from its 52-week high of 1140.4. It has fallen nearly 10 percent in the past three months, and is down around 13 percent in 2025 so far.
After such sharp correction, investors may have resorted to value buying, pushing the stocks higher.
Govt considers 20-year tax break for data centres, says report
Anant Raj shares were the top gainers on the index, skyrocketing around 12 percent to trade at Rs 598 apiece. This comes after a report said that the government is considering a 20-year tax break for data centres.
Prestige Estates shares jumped nearly 3 percent to trade at Rs 1,593 apiece. DLF shares also surged around 3 percent to trade at Rs 779 apiece. Phoenix Mills, Godrej Properties, Oberoi Realty and Macrotech Developers (Lodha) shares jumped nearly 3 percent each.
Sobha, Brigade Enterprises and Raymond shares rose around 2 percent each.
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