Realty stocks surge ahead of expiry; DLF rallies as govt hikes FAR

MUMBAI: Shares of real estate companies, which had corrected over 4.5 per cent in the last six trading sessions, bounced back ahead of November series expiry.

The BSE Realty Index surged over 18 per cent since October 16 on expectations of early rate cut by the Reserve Bank of India.

However, the counters corrected sharply in the last couple of sessions as profit booking gripped Indian markets.

According to analysts, some short covering was seen in the counters today ahead of expiry.

The government’s approval for hike in floor area ratio (FAR) in Delhi led to a surge in DLF.

The government has upped Delhi FAR to 200 per cent for 750-1000 square metres plot. FAR is the ratio of a building’s total floor area to the size of the piece of land upon which it is built.

Rajiv Talwar, Group Ex. Director, DLF in an interview to ET Now said, enhancing FAR is positive for urbanization. The increase in FAR is only for residential purposes.

Anantraj Industries closed up 9.71 per cent, DLF surged 7.20 per cent, Oberoi Realty gained 7.16 per cent, Unitech advanced 4.41 per cent and HDIL gained 3.65 per cent in trade today.