HDFC, PNB Housing Finance shares jump, Godrej Properties, Oberoi Realty stocks rise too on RBI relief to realty sector

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Updated: February 06, 2020 1:47 PM

Housing finance companies and real estate shares including HDFC, PNB Housing Finance, and Brigade enterprises, Sobha Limited, Oberoi realty, and Godrej properties jumped after the Reserve Bank of India announced a major relief to the battered realty sector from repayment of dues.

Shares of Brigade Enterprises Limited jumped 3.23 per cent to trade at Rs 239.60; Sobha Limited gained 1.70 per cent; Godrej Properties went up 0.88 per cent; and Oberoi Realty gained of 0.46 per cent.

Housing finance companies and real estate shares including HDFC, PNB Housing Finance, and Brigade enterprises, Sobha Limited, Oberoi realty, and Godrej properties jumped after the Reserve Bank of India announced a major relief to the battered realty sector from repayment of dues. Other housing financiers’ shares such as Piramal Enterprises, Indiabulls housing finance, and LIC Housing Finance Limited were also buoyant. The RBI decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters.

Shares of Brigade Enterprises Limited jumped 3.23 per cent to trade at Rs 239.60; Sobha Limited gained 1.70 per cent; Godrej Properties went up 0.88 per cent; and Oberoi Realty gained of 0.46 per cent. Sectoral index Nifty Realty was up 0.14 per cent, however, S&P BSE realty failed to capitalise on the positive news coming from Mint Street as it slumped 0.21 per cent.

The Reserve Bank of India decided today that date of commencement of commercial operations (DCCO) would be allowed to be extended for project loans for commercial real estate by a year if the reason for the delay is beyond the control of promoters. “The decision is in line with treatment accorded to other project loans for non-infrastructure sector, said the RBI. The move would complement the initiatives taken by the government of India in the real-estate sector,” it said . Detailed instructions on the decision will be issued by the Central Bank soon.

Shares of housing finance companies jumped backed by the RBI’s announcement to put out changed regulations for HFCs for public comments. HDFC gained 1.71 per cent; PNB housing finance jumped 7.35 per cent to trade at Rs 455 after the decision, Indiabulls housing finance share price gained 9.40 per cent after the announcement. Even the troubled Dewan Housing Finance Corporation Limited saw its share price jump 4.69 per cent. While LIC Housing Finance Limited went up by 6.93 per cent. Piramal Enterprises jumped 9.83 per cent.

Earlier today, RBI’s MPC kept the repo rate and reverse repo rates unchanged, and maintained the accommodative stance, saying that GDP growth for 2020-21 is projected at 6.0 per cent – in the range of 5.5-6.0 per cent in H1 and 6.2 per cent in Q3.

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