New Delhi: Realty stocks closed up to 8.2 percent higher on Thursday after the government approved a Rs 25,000 crore fund for 1,600 stalled housing projects, which is expected to jumpstart consumption and give a boost to real estate and allied sectors.
Shares of NBCC India jumped 8.20 percent, Indiabulls Real Estate rose 4.94 percent, The Phoenix Mills Ltd went up 3.11 percent, Sobha climbed 2.34 percent and Prestige Estates Projects ended up 1.48 percent on the BSE.
Among others, Oberoi Realty went up 0.83 percent, DLF rose 0.44 percent and Godrej Properties went up 0.19 percent.
The realty index closed at 2,121.04, up 0.78 percent.
"On the domestic front, the measures announced by the Finance Minister yesterday helped revive interest in real estate related companies as well as finance companies with exposure in real estate, including some of the housing finance stocks," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private Ltd said.
Among housing finance stocks, PNB Housing Finance gained 4.17 percent and LIC Housing Finance rose 2.87 percent.
"Reforms and earnings are the market drivers, the measures to support realty sector augers well for the sector to outperform. The proposed measure will help to start the recovery of stalled projects and can see a ripple effect in NBFCs, banks and cement sector," Geojit Financial Services Head of Research Vinod Nair said.
The government on Wednesday approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared NPAs or admitted for insolvency proceedings, as it looks to boost growth by steering consumption in real estate and associated sectors.
The move is likely to help 4.59 lakh housing units across the country.
Real estate developers welcomed the government's move to help complete stalled housing projects, saying it will solve the long-pending problem of homebuyers.
"It's a very welcome change from the initial announcement (of 14 September). Now the only criteria for eligibility is networth positive projects," real estate developers association CREDAI Chairman Jaxay Shah said.
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Updated Date: Nov 07, 2019 20:00:30 IST