Realty Stocks made a fair deal after the Reserve Bank of India surprise 50 bps lowered tax rates; that’s why
Real estate stocks cooled on Monday, June 9 after a blockbuster rally last week as investors booked profits after a larger than expected 50 basis points buyback rate for the Reserve Bank of India (RBI) (RBI). While the move is expected to raise housing demand, the Nifty Realty Index has slightly lowered to around the 1,038 level, winning a two-day streak.
Investors gain benefits after policy improvements after sharp rally
The monetary policy committee led by Reserve Bank of India Governor Sanjay Malhotra announced a 50 basis point cut, which was the June 6 Nifty Realty index soared nearly 4.7% to close at 1,039.60 on June 6. Unexpected relief drastically on Friday, pushing real estate stocks to new highs.
However, on Monday, the index put slight pressure on the index as short-term traders choose cash to cash in recent gains. Stocks like Prestige Estates and Brigade Enterprises fell more than 1%, while Oberoi Realty fell 0.8%. DLF, Godrej Properties and Macrotech developers (Lodha) also saw slight losses.
Why do you silently react despite slowing down the speed?
While a 50 basis point buyback rate reduction boosts the benchmark rate to 5.5% and is seen as a headwind of housing demand, analysts noted that much of the optimism last week has been priced. In addition, the global market uncertainty and cautious tone of institutional investors before inflation data have limited aggressive buying.
“The accumulation of 100 basis points since February 2025 has greatly increased the affordability of housing. For a home loan of Rs 1 crore, which has been used for nearly 3 years on the same EMI, or a qualifying increase of Rs 1.5 crore, is the game and affordable housing for the middle class,” JM Financial said in its latest real estate division.
Market prospects
Anant Raj’s share price has risen more than 2% in the overall soft tone, while Sobha, Raymond and Phoenix Mills manage marginal gains. Experts believe that quality names selected in residential and commercial real estate may continue to attract investors’ interest every time they drop.
Analysts say that while Monday was somewhat cooler, the medium-term outlook for real estate remains bullish, especially as the current interest rate cycle continues.
