Realty shares zoom ahead of RBI monetary policy decision
Real estate stocks jumped as much as 10% on Thursday in anticipation of the RBI's Monetary Policy Committee (MPC) decision, scheduled for Friday. Market expectations are tilted toward a 25-basis-point repo rate cut, along with a continued accommodative stance—a positive signal for rate-sensitive sectors like real estate.
The Nifty Realty index was the top-performing sectoral index on Thursday, climbing up to 2% in intraday trade before settling 1.75% higher. Since May 9, the realty index has surged more than 20%, outpacing the 3% gain made by the benchmark Nifty50 index.
Meanwhile, India's equity market extended gains on Thursday as the BSE Sensex surged 443.79 points or 0.55% to close at 81,442.04, and the NSE Nifty50 advanced 130.70 points or 0.53% to settle at 24,750.90.
Investors demonstrated robust demand for real estate stocks in anticipation of the RBI's upcoming policy decision on Friday. Market experts widely expect a 25-basis-point reduction in the repo rate -marking the third consecutive cut - as inflationary pressures ease.
A small fraction also hopes the RBI goes for a 50 bps rate cut after retail inflation dropped to 3.16% in April, giving the central bank wider flexibility to prioritize economic expansion.
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