Real estate stocks gain after FM hints at new measures for sector

Real estate stocks were trading higher on November 6 after Finance Minister Nirmala Sitharaman hinted at new measures to resolved issues facing the real estate sector.

The minister had said a day earlier that the government and the Reserve Bank were working to address the problems of the realty sector.

All stocks, except Phoenix Mills, were trading with gains of 1-5 percent, while the sector was up nearly 3 percent in the afternoon trade.

Admitting that realty was left out of the recent measures announced to boost the economy, the minister said the segment had a spillover effect on many sectors, especially the core sector.

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"The government is very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector," Sitharaman said at an NSE event.

In recent weeks the government has rolled back several tax measures introduced in the budget in July and has also drastically lowered the corporate tax to 22 percent, giving tax benefits to the tune of Rs 1.3 lakh crore.

Admitting that the recent measures had not helped the sentiment in the real estate, the minister said, "One particular sector which I have not touched, but which has a lot of positive impact and also can effect an impact for the stock market is the real estate sector."

with inputs from PTI