Realty stocks on fire; gain upto 9% as government eases FDI norms
Realty stocks had been buzzing over the last two sessions in anticipation of this positive news. The S&P BSE Realty Index has surged 7%.
By ET Online |
MUMBAI: Shares of realty companies gained momentum for second straight session on Thursday after the Cabinet relaxed FDI in the construction sector, including housing.
The realty stocks have been buzzing for the last two sessions in anticipation of positive news flow. The S&P BSE Realty Index has surged 7 per cent in the period.
The Union Cabinet on Wednesday approved a comprehensive proposal by the Department of Industrial Policy & Promotion (DIPP), dropping the minimum 10-hectare rule for serviced housing plots and slashing the minimum floor area for construction development projects to 20,000 sq m from 50,000 sq m to be eligible for overseas investment.
It has approved 100 per cent FDI under the automatic route and cap on minimum investment is now down to $5 million from $10 million earlier. According to J C Sharma, Vice Chairman & MD, Sobha Developers, the government’s move of 100 per cent FDI in construction is a welcome move. All the stocks in the BSE Realty Index were in the green.
DLF rallied 5.79 per cent intraday, Sobha Developers pared some gains after hitting intraday high of 9 per cent, and HDIL and DB Realty touched intraday highs of 3.71 per cent and 3.76 per cent, respectively.
The realty stocks have been buzzing for the last two sessions in anticipation of positive news flow. The S&P BSE Realty Index has surged 7 per cent in the period.
The Union Cabinet on Wednesday approved a comprehensive proposal by the Department of Industrial Policy & Promotion (DIPP), dropping the minimum 10-hectare rule for serviced housing plots and slashing the minimum floor area for construction development projects to 20,000 sq m from 50,000 sq m to be eligible for overseas investment.
It has approved 100 per cent FDI under the automatic route and cap on minimum investment is now down to $5 million from $10 million earlier. According to J C Sharma, Vice Chairman & MD, Sobha Developers, the government’s move of 100 per cent FDI in construction is a welcome move. All the stocks in the BSE Realty Index were in the green.
DLF rallied 5.79 per cent intraday, Sobha Developers pared some gains after hitting intraday high of 9 per cent, and HDIL and DB Realty touched intraday highs of 3.71 per cent and 3.76 per cent, respectively.
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