Realty Stocks Surge 11% as Fed Rate Hike Concerns Ease, Led by Lodha and Brigade Gains
Global Economic Sentiment Boosts Indian Realty Sector
Shares of most real estate companies extended their gains on Monday, with the Nifty Realty index rising for the fifth consecutive session amid easing concerns over interest rate hikes by the US Federal Reserve. The Nifty Realty index climbed as much as 2 percent during the session, with the sectoral index advancing about 11 percent over the five-session rally, making it the top performer among sectoral indices.
The improvement in global risk sentiment, triggered by a softer-than-expected US jobs report last week, has reduced expectations of further rate hikes by the Federal Reserve. According to the CME FedWatch tool, traders now see about a 55 percent chance of a rate hike in September, down from more than 60 percent before the jobs data. This shift in expectations has led to increased capital flows into emerging markets such as India, benefiting the real estate sector.
Stable interest rate expectations reduce concerns over borrowing costs, which are a key factor for both developers and homebuyers. As a result, the real estate sector is witnessing buying interest, with shares of many companies advancing on Monday. emerged as the top gainer in the index, advancing up to 4 percent. rose over 3 percent, followed by Godrej Properties, Phoenix Mills, Oberoi Realty, and Prestige Estates Projects.
