Around 30 fund houses currently hold some exposure to real estate, with some mutual funds - including Bandhan AMC - overweight on the sector, citing improved balance sheets, disciplined developers, and selective land acquisition.
Shares of Sunteck Realty jumped almost 9 percent and traded as the top gainer in the index, followed by Mahindra Lifespace Developers, Oberoi Realty and DLF.
BSE Telecom and Realty gained the most, rising more than 15% each, followed by metal index, which rose nearly 15 percent.
The BSE Realty Index fell nearly 10 percent in two days with the major ones like DLF (down 17% percent), Indiabulls Real Estate (down 10 percent) and HDIL (down 12 percent) losing the most.
The real estate market has been a steaming hot topic since the past many months with prices being on a roller-coaster ride forever. However, in spite of rates hitting old highs, the stocks continue to be available at 10-15% of their previous peaks.