Housing finance companies and shares of real estate majors surged up to 11% after RBI's sixth bi-monthly MPC statement. As a big boost to the realty sector, the RBI has decided to permit extension of timeline for commercial real estate projects.
Accordingly, there will be allowed an extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by a year' s time. So, if the delay is for genuine reasons, there shall be no downgrade of commercial realty loans.
Nifty Realty jumped up to 1% but last was quoting lower by 0.09%. Shares constituting the index such as Brigade Enterprise, Oberoi Realty, Godrej Properties went higher by 1-3.5%.
At the same time, housing finance companies also jumped in trade with Pirmal Enterprises surging up to 11%, PNB Housing up 6.5%, LIC Housing up 8%.
Nifty PSU Bank emerged as the biggest index gainer surging up to 4% in trade today after the RBI decided to incentivize banks for lending to some of the sectors such as MSME, auto, housing loan etc.