Real estate stocks rose sharply on September 15. The Nifty Realty index climbed about 2.6 percent. This made it the day’s top sectoral gainer.
The index reached 908 in the afternoon. This was its highest point in 13 trading days. Several factors may be driving this sector’s growth.
US Fed Rate Cut Hopes: The US Federal Reserve will meet from September 16 to 17. Many analysts expect a rate cut. Job data has been weak. President Trump’s administration is also pushing for a cut.
The Labor Department’s Bureau of Labor Statistics reported fewer jobs created. This increased expectations for a rate reduction.
While Indian real estate firms focus on their domestic market, analysts believe a US Fed rate cut could prompt the Reserve Bank of India to follow suit. A cut by the RBI would lower home loan interest rates. This could boost demand for housing, lifting real estate shares.
UP Government Plans Building Code Changes: The Uttar Pradesh government plans to change building rules. These changes would affect Noida, Greater Noida, and YEIDA. The Times of India reported that ground coverage limits may be removed. Floor area ratios could also increase for various projects.
These changes could simplify construction rules. They may also encourage investment. Differing rules across authorities have caused confusion. The new rules might allow for both taller and wider building growth.
Moneycontrol could not confirm this report.
Such reforms, if approved, could benefit real estate companies in these regions. Companies like Godrej Properties and DLF might see positive impacts.
Value Buying: The Nifty Realty index has fallen significantly. It is down over 20 percent from its 52-week high of 1140.4. The index dropped nearly 10 percent in the last three months. It is down about 13 percent for the year so far.
This sharp decline may have led investors to buy at lower prices. This “value buying” could be pushing stocks higher.
Anant Raj shares were the index’s biggest gainers. They surged about 12 percent to Rs 598. This followed a report about potential government tax breaks for data centers. Prestige Estates shares rose nearly 3 percent to Rs 1,593.
DLF shares also climbed about 3 percent to Rs 779. Phoenix Mills, Godrej Properties, Oberoi Realty, and Macrotech Developers saw similar gains. Sobha, Brigade Enterprises, and Raymond shares increased by about 2 percent each.