Shares of real estate companies saw a strong rise on Saturday, February 1, 2025, as the sector performed well in an otherwise volatile market. The Nifty Realty index gained 1.88% during intra-day trading, fueled by positive investor sentiment after Finance Minister Nirmala Sitharaman announced a ₹96,777 crore allocation for urban development in the 2025 Budget.
Among the 10 stocks in the Nifty Realty index, Prestige Estates Projects, Macrotech Developers, and Sobha saw significant gains, climbing up to 9.65% during the day.
In her speech, Sitharaman highlighted that building on previous proposals from the July Budget, urban sector reforms related to governance, municipal services, urban land, and planning will be incentivised.
Additionally, she announced a ₹1.5 lakh crore outlay for 50-year interest-free loans to states for capital expenditures and reforms. An Urban Challenge Fund of ₹1 lakh crore will be created to support projects aimed at developing ‘Cities as Growth Hubs,’ ‘Creative Redevelopment of Cities,’ and ‘Water and Sanitation,’ as proposed earlier. The fund will cover up to 25% of the cost of bankable projects, with at least 50% of the funding coming from bonds, bank loans, and public-private partnerships (PPPs).
Sitharaman also mentioned that each infrastructure ministry will prepare a 3-year project pipeline that can be implemented through PPPs. States will be encouraged to do the same and can seek support from the India Infrastructure Project Development Fund (IIPDF) to develop PPP proposals.
As of 1:06 PM on Saturday, seven out of the 10 Nifty Realty index stocks were trading higher, with Prestige Estates Projects, Macrotech Developers, Sobha, Phoenix Mills, DLF, Oberoi Realty, and Raymond showing gains of up to 6.68%. Meanwhile, Brigade Enterprises, Godrej Properties, and Mahindra Lifespace Developers saw declines of up to 1.87%.
Despite the rally in realty stocks, the broader market was under pressure. The Sensex was down 335 points, trading at 77,165, and the Nifty was at 23,424.30, down by 0.36%.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 1, 2025, 3:00 PM IST
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