S&P BSE Realty Index Posts Best Week In 88 Months
The S&P BSE Realty Index logged its best week in more than seven years in a period of milestones when the Sensex breached 60,000 and the Nifty 50 surged to a new record.
The 10-stock index advanced nearly 21.3% in the week, surpassing all weekly gains made across the 88 months since May 25, 2014, when the gauge rose 23.13%. The S&P BSE Realty index has gained nearly 30% in the month so far, on track to log its best monthly gains since May 2014 as well.
Godrej Properties Ltd. was the top gainer, aided by its single-day sales of Rs 575 crore it made for a project in Noida. The Mumbai-based developer said it sold apartments worth about Rs 1,140 crore in the project over the last six months.
Oberoi Realty Ltd., DLF Ltd., Sunteck Realty Ltd. and Indiabulls Real Estate Ltd. are among the other top weekly gainers in the sector.
Revival in property market, home loan interest rate cuts and a reduction in stamp duty in the key market of Karnataka, rising vaccination rates and gradual easing of Covid-19 curbs aided the realty gauge's rally, according to analysts at ICICI Securities. The brokerage has chosen DLF Ltd., Oberoi Ltd., Brigade Enterprises Ltd., Sunteck Realty Ltd. and Mahindra Lifespace Developers Ltd. as the preferred picks in its pecking order.
Jefferies' Chris Wood has launched a model India portfolio for only long positions on stocks in which property stocks had the third-highest weight. In his Greed & Fear report, Wood said India is at the start of a new housing cycle after a seven year downturn and included Godrej Properties Ltd., Century Textiles Ltd. and DLF Ltd. in the portfolio