MUMBAI: Shares of real estate companies are on a roll with most of the frontline stocks trading higher by up to 17% on the bourses after President Pranab Mukherjee in his joint address to the Parliament today said that the government proposes proper housing to all citizens by 2022.
Unitech, D B Realty, Prestige Estates, Sobha Developers and Puravankara Projects are up between 10-17%, while DLF, Housing Development and Infrastructure (HDIL), Oberoi Realty, Mahindra Lifespace Developers and Godrej Properties have gained 2-5% on the Bombay Stock Exchange (BSE).
The S&P BSE Realty index, a gauge for real estate companies, is the biggest gainer among the sectoral indices and has rallied 6% compared to a 0.79% rise in S&P BSE Sensex at 1435 hours. Since May 16, the realty index has risen 49% against 7% gain in benchmark index.
The BJP manifesto has promised a house for every family in India within 75 years of Independence that is by 2022. To cater to the BJP vision for the next eight years, builders and consultants are rushing to ready their blueprint on affordable housing, a promise that has not been delivered effectively so far by any government.
Among the individual stocks, Unitech has rallied 17% to Rs 38 on the BSE. D B Realty has surged 16% to Rs 102, followed by Prestige Estates (15% at Rs 263), Sobha Developers (13% at Rs 575) and Puravankara Projects (11% at Rs 102).