Realty stocks in demand on rate cut hopes; Unitech up 14%

MUMBAI: Realty stocks continued their upswing on Friday on hopes of further interest rate cuts with inflation rate easing. Reports that the government may raise the cap on income tax rebate for the interest paid on home loans also boosted sentiment.

Investors are keenly looking forward to a second booster shot from the government to be announced next week, which is expected to revive the economy. The limit for tax rebate on home loans is expected to go up to Rs 2 lakh from the present limit of Rs 1.50 lakh.

The BSE Realty climbed 6.97 per cent and was the biggest sectoral gainer. Industry leader Unitech soared 13.78 per cent to Rs 43.35 on reports that the company plans to invest Rs 2,500 crore to launch 10,000 residential units by the next fiscal.

Among other realty gainers, DLF surged 6.25 per cent, Sobha Developers rose 6.53 per cent, Ansal Infrastructure moved 8.47 per cent higher, Indiabulls Realty advanced 7.06 per cent and Parsvnath Developers was up 5.37 per cent.