Stocks of Godrej, Oberoi and DLF increase in Nifty Real estate of over 3%
Real estate stocks increased after the cut of the repo rate by 50 basis points to 5.5% by the RBI's Monetary Policy Committee. A good increase was seen in shares like Godrej Properties, with a confident real estate market with a good housing demand and an increase in investment in the sector.
The Shares of Godrej Properties, Prestige Estates, DLF, Oberoi Realty, and Sobha Group jumped from 3% to an increase of 6%. Nifty Realty had a good increase of over 3%, and all the stocks will show a great positive movement. But Raymond was the only stock trading that was shown in red.
Nifty Realty is having a strong tick after the RBI’s policy, and they have gained more than 2.5%. Here, a broad-based buying range is seen, where traders can keep a positive bias using minor dips to buy. Among everything DLF, Godrej Properties, and Lodha are the top picks.
A Research Analyst, Prashanth Tapse, explained that real estate stocks are in action and in increase following the RBI’s surprise move to cut the repo rate and double the street's expectation of 25 bps. The surprise in this reduction brings the repo rate to 5.5%. It marks the 3rd repeated rate cut in the year 2025. At last, it got a cumulative decrease of 100 basis points.
The RBI’s move in decreasing the prices will enhance the bank system's liquidity. It helps lenders to pass on the benefit to buyers effectively. With a supportive policy stance, there will be a high housing demand over the next 2 to 3 years, mainly in the affordable housing segments. This rate reduction will improve credit lending and accelerate the buying velocity among buyers. The decline in home loan interest rates will directly benefit buyers by reducing their price range.
Low mortgage rates will make owning a house more attainable. It will bring great demand and foster strong sales. Its move could strengthen the investment interest in top branded properties among the Grade A developers.
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