After a prolonged selling spree, the market is again gaining momentum with bulls taking charge over benchmark indices. The Nifty Realty Index emerged as the top-performing sector, surging by more than 4 per cent and reaching its highest point since 2008. All ten components of the index were trading with positive gains, showcasing a strong performance across the real estate sector.
The Realty Index has marked an impressive gain of over 40 per cent year-to-date. The advent of the festival season coupled with positive second-quarter results of various companies have been the major drivers of investor optimism.
Prestige Estate Projects stands out as the leading gainer in the Realty index, with a remarkable gain of over 7 per cent. The stock had reached an all-time high during its trading hours. The Bengaluru-based company reported a twofold increase in pre-sales for the September quarter compared to the same period last year.
Among the gainers within the index, stocks such as Godrej Properties, Oberoi Realty, and DLF are trading with gains as well.
The BSE benchmark index recorded a substantial gain of 566 points, concluding at 66,079, while the Nifty 50 closed at 19,689. The Small-cap and Mid-cap indices also closed on a positive note, reflecting a broad-based market upswing.
“We expect the uptrend to continue and hence one can look for stock-specific buying opportunities within this space," Ruchit Jain, Lead Research Analyst at 5paisa told Mint.
Many attribute the prevailing optimism to various factors, with the RBI's decision to maintain interest rates providing a significant boost to interest rate-sensitive sectors such as real estate and automotive.