Realty stocks advance on rate cut hopes

MUMBAI: Shares of real estate firms today surged by up to 6 per cent on hopes of a cut in interest rates by the Reserve Bank in its mid-quarter review of the monetary policy this month.

Housing Development and Infrastructure Ltd settled 5.89 per cent higher at Rs 72.80, while Unitech was up by 2.01 per cent at Rs 22.80 on the BSE.

Among others, Oberoi Realty rose by 1.66 per cent, Orbit Corporation was up 3.83 per cent, DLF gained 1.24 per cent, Indiabulls Real Estate rose by 0.69 per cent and Sobha Developers closed higher by 1.43 per cent.

Helped by the rally in these stocks, the BSE realty index ended at 1,650.86, up 1.40 per cent.

"Realty and construction sector extended their recent gains on hopes of policy rate cut by th RBI," Sharmila Joshi Head Equity Fairwealth Securities said.

Meanwhile, the BSE benchmark Sensex closed the day 69.82 points higher at 16,718.87.