Real estate stocks end 9-day winning run on profit booking; Nifty Realty falls 3%
Also Read: Nifty 50 set record highs 32 times in 2024, up 11% from June 4 lowFollowing one of their worst intraday performances on June 4, real estate stocks resumed their winning streak in the subsequent session after the ruling Bharatiya Janata Party (BJP) secured sufficient support from key allies to form a coalition government, ensuring Modi’s return to power for a third consecutive term.Investors anticipate continued strong economic growth despite the coalition government set up, projecting that the government's focused emphasis on Capex growth over the past four years will persist, which is expected to bolster the country's economic engine, driving growth and strengthening it further.Amid this backdrop, from June 05 to June 18, the index surged from 976 to 1,150 points, marking an impressive gain of nearly 18%.As the Indian economy has experienced robust growth in recent years, disposable incomes among Indians have risen, prompting increased investment in the real estate sector. Real estate has been a preferred choice for the majority of Indians.Also Read: Defence stocks tumble amid profit booking; Bharat Dynamics down 6%Consequently, developers experienced a stellar response, with sales soaring within hours of opening bookings.
Despite facing higher interest rates and implementing multiple price hikes to offset the rising costs of raw materials, the demand for housing in India continued to escalate unabatedly.Robust financial performance, reduced inventory levels, and successive price hikes collectively fueled the surge in demand for real estate stocks, resulting in massive returns. Impressively, 70% of the index constituents have generated returns ranging between 100% and 300% over the past year.Also Read:
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