Amid market mood getting lighter after the Evergrande crisis and Nifty once again hitting levels of 17,600, there is seen extensive buying in the realty space, which has taken it to gain almost 8 percent on an intra-day basis. The index hit fresh 52-week high of 454.6, resulting in year to date gains of a huge 43 percent.
Of the 10 constituents in the realty index pack, 3 have hit fresh 52-week, including the likes of Godrej Properties, Sunteck Realty and Brigade Enterprises. All of the stocks within the pack are trading with gains between 3-9 percent.
Brokerage's bullishness on some of the realty stocks also play their part in the positive sentiment in these realty stocks. Global research firm Jefferies has reiterated a buy call on the stock of Godrej Properties for a target price of Rs. 1974, while its 52-week price hit today is Rs. 1949.7.
Realty stocks are getting a boost after a long phase of consolidation. Further some of the strong positives such as low interest rates, hopes around faster economic recovery as well as stamp duty cut in some of the states are also adding to realty players delight.
On the previous day, Karnataka state assembly slashed stamp duty by 2 percent on flats priced lower than Rs. 45 lakh.