The Indian stock market has hit record high with Sensex up 339.54 points or 0.72 percent at 47313.08, and the Nifty adding 105.60 points or 0.77 percent at 13854.90.
Among the sectors, the realty index jumped led by Indiabulls Real Estate which jumped 10 percent followed by Godrej Properties, DLF and Sobha which gained 4 percent each.
Share price of real estate firm DLF added 4 percent as company is going to acquire 51.8 percent stake in Fairleaf, a joint venture company. DLF Cyber City Developers Limited (DCCDL), a material subsidiary of DLF, holds 48.2% stake in Fairleaf Real Estate Private Limited.
"One of the factors contributing to the fall in real estate stocks is attributable to the high debt of companies over a few years, mainly due to the delay in completion of projects and unsold inventory," said Ashis Biswas, Head of Technical Research, CapitalVia Global Research.
Brokerage firm Prabhudas Lilladher pointed out that the realty sector has underperformed in the year and it was, anyway, not a favorite sector due to poor sales. Last year, there were many reports of scams which also made this sector of least choice for investors, said the brokerage.
Prabhudas Lilladher believes the sector is picking up so select stocks from this sector should continue to soar high in 2021.
"Godrej Properties, Oberoi Realty, Sobha for the long-term and DLF would be a good trading bet," said Prabhudas Lilladher.
Shares price of Godrej Properties hit new 52-week high of Rs 1,446.65 and was trading at Rs 1,425.30, up Rs 63.30, or 4.65 percent. It was trading with volumes of 106,676 shares, compared to its five day average of 68,394 shares, an increase of 55.97 percent.
Indiabulls Real Estate was trading at Rs 79.90, up Rs 7.45, or 10.28 percent. It has touched an intraday high of Rs 82.40 and an intraday low of Rs 73.10. It was trading with volumes of 1,442,998 shares, compared to its five day average of 545,187 shares, an increase of 164.68 percent.
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