Realty sector stocks welcomed the status quo on key policy rates as Nifty Realty Index jumped over 1 per cent in the intraday trade. While, the markets opened on a low note, the reassurance from the Reserve Bank of India (RBI) towards growth lifted the markets. Most indices including the realty responded positively.

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This was the 10 bi-month policy in a row when the Indian Central Bank left the repo and reverse repo rates unchanged. While repo rate was maintained at 4 per cent, the reverse repo rate was left at 3.35 per cent. The six-member Monetary Policy Committee (MPC) also continued its accommodative stance. The decision was a from the estimates of many analyst who were expecting a Neutral stance along with some tinkering with the reverse repo rate. 

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The realty stocks surged intraday on both Nifty Realty and S&P BSE Realty indices. 

The 10-share Nifty Realty and S&P BSE Realty, a surged of over 1 per cent was seen in the intraday trade. Brigade Enterprises shares jumped over 2 per cent, followed by Godrej Properties which was also up around 2 per cent. Meanwhile DLF, Sobha and Indiabulls Real Estate were up over 1 per cent on the NSE. 

Lodha, Oberoi Realty and Phoenix Ltd also grew marginally between 0.1-0.8 per cent and on the other hand, Prestige and SunTeck slipped marginally in otherwise positive trade. 

With the interest rates being kept unchanged, most of the analysts believe the central bank has kept its focus in economic growth primarily rather than worrying upon inflation. 

Banks, financials, auto and realty are likely to have direct benefit from the current decision. 

The unchanged reverse repo also augers well to nurture the credit cycle, which has only recently started picking up, positively impacting banks, NBFCs, HFCs and real estate companies, Yesha Shah, Head of Equity Research, Samco Securities said in his RBI policy comment. 

“The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward,” the RBI said.