Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives

Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives
Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives
Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives
Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives

Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives

Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives

Nifty Realty Index Surges 5%, Hits 15-Year High as Real Estate Sector Thrives

In a remarkable surge, the Nifty Realty Index surged by over 5% during Tuesday’s session, achieving a new 10-year high. All ten constituents of the Nifty Realty Index were trading higher, solidifying its position as the top sectoral gainer for the day. This year alone, the Nifty Realty Index has seen a remarkable ascent of 41%, and in the most recent session, it reached its highest level in 15 years. Analysts attribute this bullish run to the Reserve Bank of India’s (RBI) decision to maintain unchanged interest rates, which provided a significant boost to rate-sensitive sectors like real estate and auto.

Strong Quarterly Updates Fuel Optimism

Analysts are optimistic about the real estate sector’s performance, noting strong quarterly business updates from real estate companies. They anticipate that Q2 earnings will surpass expectations, and this positive sentiment has already begun to reflect in the Nifty Realty Index’s performance. The index recently witnessed a breakout near the 560 levels and is now trading around 610. If this trend continues, it has the potential to rally towards levels of 720-740 in a short time, according to Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities.

Prestige Estates Projects emerged as the top gainer among the Nifty Realty Index constituents, with a remarkable surge of over 15%. The company also touched a 52-week high in Tuesday’s trading. The Bengaluru-based Prestige Group reported a significant increase in sales bookings, totaling ₹7,092 crore in the second quarter, driven by robust demand for residential properties.

Other prominent real estate players such as Sobha Ltd and DLF Ltd also touched their 52-week highs during Tuesday’s trading session. Additionally, stocks like Godrej Properties Ltd, Oberoi Realty Ltd, Macrotech Developers, and Phoenix Mills were trading near their 52-week highs, with gains ranging from 2% to 7%.

Technical Analysts Bullish on Realty Sector

Technical analysts are bullish on the Nifty Realty Index, indicating that it has resumed its uptrend, supported by strong momentum from stocks within the sector. They expect this upward trajectory to continue and recommend exploring stock-specific buying opportunities within the real estate space.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, highlighted the widespread buying activity in the realty sector, which has outperformed the overall market. Chart patterns suggest a robust structure, and analysts anticipate that this bullish trend will persist, further fueling optimism in the real estate sector.

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