The S&P BSE Realty index reached a 15-year high on Tuesday, spurred by encouraging operational updates from listed companies and optimism about a real estate upswing.
The index, representing the performance of real estate stocks, climbed 4.1 per cent to close at Rs 4,842.12, marking its highest level since 12 September 2008. All 10 components of the BSE Realty index registered gains, led by Prestige Estates Projects, which surged 8.6 per cent, and Sobha, which saw an increase of nearly 7 per cent.
Last week, Prestige revealed that its sales had more than doubled to Rs 7,093 crore during the second quarter ending September 2024 (Q2FY24). Similarly, Sobha reported its highest-ever sales for the quarter, amounting to Rs 1,724 crore.
Mumbai-based Ajmera Realty announced on Tuesday that its sales had grown by 52 per cent to Rs 252 crore in Q2FY24. Consequently, its stock leapt by 13 per cent, closing at Rs 423. The real estate sector has been one of the top performers on Dalal Street this year.
The BSE Realty has surged by 40 per cent this year, while the benchmark Sensex has seen a rise of only 9 per cent. The realty sector faced significant challenges following the global financial crisis in 2008. Currently, the BSE Realty index is still trading over 60 per cent below its record high levels of 12,400 in December 2007.
First Published: Oct 10 2023 | 4:51 PM IST