Real estate stocks were in focus on Tuesday, notching up gains of up to 4%. The S&P BSE Realty index closed the session up 1.51% at 2,537.39 points, after hitting its 52-week high. Analysts believe that Tuesday’s gains are a continuation of the rally, which started early in the year. S&P BSE Realty index has delivered a hefty return of 101% on year-to-date basis. Analysts say the main factor fuelling the rally has been the passage of the Real Estate Regulation & Development Act (RERA), which after the initial teething issues, the developers are getting comfortable with. This has injected a great deal of confidence among buyers and is improving sentiment in the realty market. In the S&P BSE Realty index, DLF was the top gainer, closing 3.59% higher at Rs 253.90. The stock also hit its 52-week high of Rs 255.90 during the session before retracing some gains towards the end of the session.DLF’s market capitalisation increased by Rs 1,570 crore to Rs 45,306 crore.
Indiabulls Real Estate, Housing Development and Infrastructure (HDIL), Sobha Limited, The Phoenix Mills, Godrej Properties, Oberoi Realty, Omaxe and Prestige Estate Projects were the other prominent gainers.
Analysts also indicate that there is an expectation that the bigger players would acquire stressed assets of smaller players at attractive valuations, and this would add to their bottomlines.