Shares of jumped 7% to hit the day’s high of Rs 882.80 on NSE on Monday, riding the overall euphoric trend in after a 50 basis point repo rate cut by the Reserve Bank of India (RBI) in its June monetary policy, which concluded today.
Realty stocks, known to be sensitive to interest rates, rallied after the RBI’s rate cut, as banks are expected to pass on the benefit to borrowers, resulting in lower EMIs on home loans.
The Nifty Realty index, which tracks the top 10 real estate stocks, surged 4.6% to hit the day’s high of 1,038.85. It was the best-performing sector of the day, with 9 out of 10 stocks trading in the green.
Apart from DLF, was another top gainer, rallying 7%. The Phoenix Mills, and rose between 0.5% and 6%.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP of NAREDCO’s Maharashtra chapter, said the cut is both strong and timely amid early signs of demand moderation in the residential sector.
“Lowering the repo rate to 5.5% will have a cascading effect across the lending ecosystem, bringing home loan interest rates well below 7.75% — a highly encouraging development for both existing and prospective homebuyers,” Yagnik added.