Realty stocks jump on short covering

Mumbai: Realty stocks registered hefty gains boosted by lending rate cut by major lenders and stamp duty cut announced by the Karnataka government.

The BSE Realty Index closed 8.39 per cent up as home loan interest rate cut by major players like SBI, HDFC, Kotak Mahindra Bank, Punjab National Bank and  the 2 per cent stamp duty cut announced by the Karnataka government for property priced up to Rs 45 lakh enthused market participants to cover their shorts.

The top gainers were Godrej Properties (13.03 per cent), DLF (11.61 per cent), Indiabulls Real Est-ate (8.84 per cent), Sobha (6.10 per cent), Macrotech Developers (3.60 per cent), Sunteck Realty (3.35 per cent) and Oberoi Realty (3.14 per cent).  

Analysts expect real  estate sales to pick up pace in the festive season after high sales witnessed in September so far in the Mumbai region.

"More than 6,000 units have been registered in the first 21 days of September, surpassing the September 2018 total of 5,913 units. Registrations will begin to drop with the Shraad (a period of abstinence for Hindus from initiating new deals commencing from Sept. 20 till Oct.6) but overall registrations may touch  around 7,000 units which will be a record in the last decade," said Motilal Oswal.