The shares of Sobha Developers ended little changed at Rs 434.45 on BSE, after rising 9% intraday. HDIL and DB Realty touched intraday highs of 6.5% and 3.8%, respectively. Realty index closed at 1,530.56 points, up 3.4% over the previous day close, the best among BSE sectoral indices. The Sensex touched an all-time high of 27,346.33, up 0.92%, over the previous close.
Among other constituents of the Realty index, Unitech stocks climbed 9.6% and Indiabulls Real Estate gained 4.5% in the intra-day trade. The Union Cabinet on Wednesday eased the minimum project-size for inviting overseas investors to 20,000 square meter from 50,000 square meter mandated earlier. It had approved 100% FDI under the automatic route and also halved the paid-up capital requirement for projects to $5 million.
Realty stocks have seen buying interest in the last two sessions in anticipation of policy reforms. Unitech and DLF gained in the range of 11-12% in the last two days.
In fact, Unitech shares have given 26.14% returns so far this calendar. Mumbai-based Phoenix Mills generated highest return of 69% among realty stocks, followed by HDIL (52%) and Godrej Properties (46%) on reforms measures.