Metal, realty stocks: Weaker US dollar, no repo rate cut from RBI and poor earnings by some of the players further fuelled the downturn in the sector.
The sharp fall in the share prices pushed the Nifty Realty index down more than 4%, to emerge as the top sector loser on the market today.
Godrej Properties announced on June 16 that it will develop a premium residential project on a land parcel spanning across approximately 14 acres in Hoskote, East Bengaluru.
Real Estate Stocks: Nifty Realty was marginally down in the red to hover around 1,038 in the morning, snapping a two-day gaining streak.
CLSA stated that it sees an additional 50 to 75 basis points of rate cuts for the rest of financial year 2026
Choice Broking in its latest note said the valuation of real estate companies are looking more reasonable after the recent correction, and investors assessed the impact of RBI rate cut on real estate demand.
The company announced that 'Godrej Astra' is strategically located in Gurugram's Golf Course Road micro-market and is spread across nearly 2.76 acres of land.
Nifty Realty index rose nearly 3 percent, snapping its 3-day losing streak. The sectoral index is currently the top gainer among its peers on NSE.
This correction comes amid concerns over investor interest in the sector, given the soaring property prices in major metros.
Phoenix Mills shares were the top loser on the index, falling 3.3 percent to trade at Rs 1,547 apiece. The stock is currently hovering near its 52-week-low record of Rs 1,215 apiece.
In its Q3FY25 update, Ashiana Housing reported a 161 percent YoY increase in the value of area sold
The Nifty Realty index zoomed up more than 17 percent in the past month, leaving the Nifty 50’s modest 4 percent gains far behind to emerge as the new rock star of the market.
At close, the Sensex was down 384.55 points or 0.47 percent at 81,748.57, and the Nifty was down 100.05 points or 0.40 percent at 24,668.25. About 2,220 shares advanced, 1,748 shares declined, and 94 shares unchanged.
BJP-led Mahayuti alliance's landslide victory in Maharashtra is expected to bring the focus back on infra development which bodes well with real estate companies.
Macrotech Developers stock are in focus as Nomura reaffirms its buy rating with a target price of Rs 1,600, after the realty giant reported its best-ever pre-sales in Q2FY25.
Realty stocks fell up to 6 percent amid market sell-off, Mumbai housing registrations dropping in September, weighed down by Shraadh and election-related stamp duty expectations.
Around 1.07 lakh units were sold in Q3 2024 across the top seven cities, compared to 1.2 lakh units in the same period last year
Morgan Stanley highlights waning investor interest in real estate, noting stretched valuations and a shift towards smaller developers, while Citi raises target prices and JM Financial forecasts continued sector growth.
Citi has raised target prices for DLF, Sobha, and other realty stocks, but flagged concerns over expensive valuations.
The revision comes as analysts forecast that the company will exceed $1 billion in operating cash flow at the group level in FY25
The company said its order book was at Rs 57,195 crore, as of June 30, 2024
The recovery is due to a large section of experts believing that removal of indexation benefit would not have such a drastic impact as estimated earlier, especially for those who again re-invest the gains in the real estate segment.
If a property's value has increased more than the inflation rate, the new 12.5 percent tax rate is expected to be more advantageous for real estate sellers compared to the previous 20 percent tax rate after adjusting for indexation.
Realty stocks had witnessed strong selling on the Budget day after finance minister Nirmala Sitharaman's proposed to remove the indexation benefit on calculating long term capital gains tax (LTCG) on real estate.
Realty stocks gain after FM Sitharaman announced Rs 11 lakh crore capex outlay and Rs 10 lakh crore allocation for rental housing.