Nifty Realty ends nearly 2% as profit booking weighed on markets

Realty stock: Nifty Realty closed almost 2 per cent down as the market traded lower amid profit booking. The whole realty index traded in red except for Sobha limited which finished 0.54 per cent higher.

In the 10-stock index, 9 declined. NSE Nifty Realty closed at 447.55 and was down by 1.50 per cent.  India bulls Real Estate dragged the realty index and crashed over 7 per cent. Brigade Enterprises, Lodha, Phoenix Ltd and Prestige dipped over 2 per cent. BSE S&P Realty Index at closing fell almost 2 per cent at 3,562.66.  

Year To Date (YTD) the Nifty realty index has fallen more than 9 per cent but in the past six months have climbed over 9 per cent.  

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Since the Indian Central Bank announced a hike of 35 bps repo rate in December monetary policy, the realty stocks have been trading. A higher repo rate regime ensure higher cost of loans and EMI pay-outs. This in turn has an adverse sentimental impact on the realty sector.

After the Repo rate was hiked experts had said that the repeated rate hikes may impact the realty sector.

“The real estate sector has started seeing gradual recovery across key property markets, driven primarily by end-users, however, the repeated rate hikes may impact the interest rate-sensitive sector,” Ramani Sastri, Chairman & Managing Director at Sterling Developers said. 

Low-interest rates have been the biggest factor in the resurgence of real estate demand in the last few years and hence the rate hike would mean a hurdle in affordability, the CMD had further said. 

NSE Nifty50 closed at 18,496.60 which was 0.61 per cent down that is 112.75 points. BSE Sensex closed at 62,181.67 which was 0.62 per cent lower or 389.01 points down.  

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