Why Real Estate Shares Are Flying? Know The Reason Behind It

The share prices of real estate stocks garnered strong gains in today's trading session pushing the BSE Reality Index, and NIfty Reality Index in green amid expectations of a possible rate cut decision during the Reserve Bank of India (RBI) meet slated on June 6.

Nifty Realty index jumped nearly 2 percent to hover around 989 in the afternoon, and BSE Reality Index increased 0.73 per cent to 7589.52 levels unlike the downtrend movement in both stock market imdices Nifty and Sensex, which closed in red. 

Will RBI Announce A Third Consecutive Rate Cut? 

The Reserve Bank of India (RBI) is expected to announce a third consecutive rate cut on May 6 after its Monetary Policy Committee (MPC) concludes its interactions which are scheduled to kick-off tommorow on June 4.

Reportedly, expectations are high that the RBI will decide upon trimming the benchmark rates by 25 basis (bps) points, and maintain the 'accommodative' stance. Lower-than-expected inflation outcome and outlook, and below expcted high frequency activity data for April, in-line GDP growth print for Q4 FY24-25, modest MSP increases, a cut in edible oil import duty are some of the pertinent reasons why experts believe the RBI MPC could likely deliver a third successive repo rate cut of 25bp on June 6 while retaining the stance as 'accommodative'," the firm said in its latest note.

Sobha shares were the top gainer on the index, jumping over 6 percent to trade at Rs 1,544 apiece. Brigade Enterprises shares followed, rising over 4 percent each. Prestige Estates and Oberoi Realty meanwhile jumped over 2 percent, while Macrotech Developers (Lodha) and Godrej Properties were up over 1 percent. Anant Raj and Phoenix Mills were trading in the green with marginal gains.

Despite the uptrend in the market, DLF shares were trading in the red with marginal losses. Raymond meanwhile was down nearly 2 percent.