Realty stocks soar up to 4.87% after RBI’s rate hike

Realty stocks jumped up to 4.87 per cent on the BSE as investors snapped shares after less-than-expected rate hike by the Reserve Bank.

Realty stocks on Tuesday jumped up to 4.87 per cent on the Bombay Stock Exchange as investors snapped shares after less-than-expected rate hike by the Reserve Bank.

DLF,the country’s largest realty developer,zoomed 3.28 per cent to settle at Rs 326.35. DLF was the second biggest gainer among 30-bluechip stocks on BSE.

The country’s second largest realty firm Unitech jumped 4.57 per cent to Rs 83.50. Sobha Developers surged 4.35 per cent to Rs 324.70.

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Mirroring the gain in the interest-rate sensitive sector,the BSE-Realty index — comprising 14 scrips– jumped 3.08 per cent to 3,567.26 points. The realty index was the biggest gainer among BSE sectoral indices.

Analysts said investor sentiment was positive as the hike in key rates by RBI was lower than expectations.

“The apex bank has expressed concern on global liquidity contributing to heating up of asset prices indicating that it is keeping a close watch on the same,” Ashvin Parekh,National Leader- Global Financial Services,Ernst & Young,said.

RBI today hiked short-term lending and borrowing rates and the portion of money banks deposit with it by 25 basis points each,a move aimed at containing inflation without hurting growth.

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“There were some apprehensions of a more aggressive central action as inflation is hovering around 10 per cent,” IIFL’s Vice President (Research) Amar Ambani said.

Other major gainers were Mahindra Lifespace (4.87 per cent),Indiabulls Real Estate (3.15 per cent),Parsvnath Developers (2.69 per cent) and Omaxe (1.03 per cent).

Stock market benchmark Sensex on Tuesday bounced back to close 59.90 points up at 17,460.58 points.