Moneycontrol Bureau
Nitesh Estates shares gained more than 10 percent intraday Wednesday on residential project agreement in Bangalore.
"Nitesh Estates, through its wholly owned subsidiary, has signed a joint development agreement for a residential project on a plot of land measuring around 5 acres in Yelahanka, North Bangalore," the Bangalore-based real estate company said in its filing.
This project is expected to generate revenue of Rs 175 crore over next four years for the company.
The stock rallied 5 percent in previous session too. Reason behind consistent upmove in real estate stocks is measures announced in Union Budget to boost sector growth.
Finance Minister Arun Jaitley says the government decided to provide 100 percent deduction for profits to an undertaking in housing project for flats upto 30 squre metres in four metro cities and 60 square metres in other cities, approved during June 2016 to March 2019 and completed in three years.
It also provided deduction for additional interest of Rs 50,000 per annum for loans up to 35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs 50 lakh. There is also an exemption from service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP schemes. It extended excise duty exemption, presently available to concrete mix manufactured at site for use in construction work to ready mix concrete.
At 10:41 hours IST, the scrip Nitesh Estates was quoting at Rs 12.40, up Rs 0.54, or 4.55 percent on the BSE.Posted by Sunil Shankar Matkar
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