Will The Real Estate Rally Beat July Jinx?
Will BSE Realty Index continue to rise following six months of gains?
A measure of real estate stocks has risen in each of the first six months this year, making it the best performing sectoral index with 70 percent gains. Yet, there could be some caution ahead.
While it is up more than 5.6 percent in July, only once in the last five years has the S&P BSE Realty Index ended the month with gains. It fell the most at 12.8 percent in July 2013 while rose in July last year.
Indiabulls Real Estate Ltd. has risen threefold year-to-date, the maximum among index constituents. The worst performer, Phoenix Mills, is up 23 percent so far this year.
Only two index stocks have a negative return potential, according to analysts tracked by Bloomberg. Mumbai-based Housing Development & Infrastructure can rise the most based on its target price.
