Realty stocks saw a significant surge on Tuesday, driven by strong sales figures reported by some listed players for the September quarter.
The NSE Realty index surged over 4%, reaching a new 52-week high. Key players in the real estate sector, including Prestige, DLF, and Godrej Properties, saw their stocks rise by 4-8% on Tuesday.
In line with this positive momentum in the real estate sector, domestic equity market benchmarks, Sensex and Nifty, also made a strong rebound on Tuesday, partly in response to developments related to the Israel-Hamas conflict.
The BSE Sensex gained 567 points, closing at 66,079, while the Nifty50 ended the day near the 19,700 mark at 19,690, marking a gain of 178 points.
Vinod Nair, Head of Research at Geojit Financial Services, commented, “The Indian market fully recovered from Monday’s losses, primarily attributed to concerns related to the Hamas-Israel conflict. A drop in crude oil prices and positive global signals, including dovish statements from Fed officials that helped stabilize US bond yields, contributed to this rebound. Currently, the domestic market is focusing on the upcoming earnings season with optimistic expectations.”
The NSE Realty index, which tracks the performance of realty stocks, recorded a 4.1% gain, closing at 606.20. It reached a 52-week high of 612.25 during the noon hours. All the components of the Realty index experienced gains, with Prestige Estates leading the way with an 8% increase, followed by Sobha with a rise of nearly 6.34%.
Other major gainers included prominent players like Godrej Properties, up 5.4%, DLF, up 3.7%, and Oberoi Realty, also up 3.7%.
Prestige Group, headquartered in Bengaluru, recently disclosed that its sales more than doubled, reaching Rs 7,093 crore during the second quarter ending September 2024 (Q2FY24). Similarly, Sobha reported its highest-ever sales for the quarter, amounting to Rs 1,724 crore.
Venkat K Narayana, CEO of Prestige Group, expressed, “This quarter has been marked by significant launches, including Prestige Park Grove and Prestige Serenity Shores, which received overwhelming responses, contributing to Rs 5,000+ crore of quarterly sales. Mumbai continues to perform well, garnering formidable sales.”