RBI MPC impact: DLF shares jump 7% amid euphoria in realty stocks
Agencies
DLF jumps 7% as RBI rate cut boosts realty stocks; strong Q4 adds fuel.
Synopsis
DLF shares surged 7% on Monday, hitting Rs 882.80, as real estate stocks rallied after the RBI slashed the repo rate by 50 bps to 5.5%. The Nifty Realty index jumped 4.6%, with most constituents in the green. DLF also reported a 39% YoY rise in Q4 net profit to Rs 1,282 crore, backed by strong revenue growth.
Shares of DLF jumped 7% to hit the day’s high of Rs 882.80 on NSE on Monday, riding the overall euphoric trend in realty stocks after a 50 basis point repo rate cut by the Reserve Bank of India (RBI) in its June monetary policy, which concluded today.
The Nifty Realty index, which tracks the top 10 real estate stocks, surged 4.6% to hit the day’s high of 1,038.85. It was the best-performing sector of the day, with 9 out of 10 stocks trading in the green.
Apart from DLF, Godrej Properties was another top gainer, rallying 7%. Prestige Estates Projects, Oberoi Realty, Sobha, Macrotech Developers, Brigade Enterprises, The Phoenix Mills, and Anant Raj rose between 0.5% and 6%.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP of NAREDCO’s Maharashtra chapter, said the cut is both strong and timely amid early signs of demand moderation in the residential sector.
"Lowering the repo rate to 5.5% will have a cascading effect across the lending ecosystem, bringing home loan interest rates well below 7.75% — a highly encouraging development for both existing and prospective homebuyers," Yagnik added.
DLF shares have delivered nearly 6% returns so far this year and over a 1-year period, underperforming the Nifty, which returned 5% and 9% in the same respective periods.
The Gurugram-based realty major reported a 39% YoY jump in net profit in Q4FY25 to Rs 1,282 crore, compared to Rs 921 crore a year ago. The profit is attributable to the owners of the company. Revenue from operations stood at Rs 3,128 crore, up 46% from Rs 2,134 crore in the same period last year.
Quarter-on-quarter (QoQ), profit after tax (PAT) rose 21%, compared to Rs 1,059 crore in Q3FY25, while the topline jumped 105% over Rs 1,529 crore in the previous quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
ADVERTISEMENT
Realty stocks, known to be sensitive to interest rates, rallied after the RBI’s rate cut, as banks are expected to pass on the benefit to borrowers, resulting in lower EMIs on home loans.The Nifty Realty index, which tracks the top 10 real estate stocks, surged 4.6% to hit the day’s high of 1,038.85. It was the best-performing sector of the day, with 9 out of 10 stocks trading in the green.
Apart from DLF, Godrej Properties was another top gainer, rallying 7%. Prestige Estates Projects, Oberoi Realty, Sobha, Macrotech Developers, Brigade Enterprises, The Phoenix Mills, and Anant Raj rose between 0.5% and 6%.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP of NAREDCO’s Maharashtra chapter, said the cut is both strong and timely amid early signs of demand moderation in the residential sector.
"Lowering the repo rate to 5.5% will have a cascading effect across the lending ecosystem, bringing home loan interest rates well below 7.75% — a highly encouraging development for both existing and prospective homebuyers," Yagnik added.
ADVERTISEMENT
DLF shares have delivered nearly 6% returns so far this year and over a 1-year period, underperforming the Nifty, which returned 5% and 9% in the same respective periods.
Stocks Recommendations
The Gurugram-based realty major reported a 39% YoY jump in net profit in Q4FY25 to Rs 1,282 crore, compared to Rs 921 crore a year ago. The profit is attributable to the owners of the company. Revenue from operations stood at Rs 3,128 crore, up 46% from Rs 2,134 crore in the same period last year.
ADVERTISEMENT
Quarter-on-quarter (QoQ), profit after tax (PAT) rose 21%, compared to Rs 1,059 crore in Q3FY25, while the topline jumped 105% over Rs 1,529 crore in the previous quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
ADVERTISEMENT
(You can now subscribe to our ETMarkets WhatsApp channel)
