Real Estate Shares Surge Up to 6% Amid Fed Rate Cut Optimism
Shares of real estate firms, including Sobha and DLF, rallied up to 6% on Wednesday, driven by optimism over potential rate cuts by the US Federal Reserve. The Nifty Realty index rose over 3%, recovering from the previous day’s losses.
Real EstateFed Rate CutNifty RealtyStock MarketInvestmentReal Estate NewsOct 15, 2025
The Nifty Realty index rose over 3 percent, recovering from the previous day’s losses, as investors cheered comments from Fed Chair Jerome Powell indicating possible monetary easing.
Fed Chair Jerome Powell warned that the sharp slowdown in hiring is increasingly threatening the US economy, hinting at the possibility of two more rate cuts this year, according to Jigar Trivedi, Senior Research Analyst at Reliance Securities. This sentiment has bolstered investor confidence in the real estate sector.
Expectations of lower US interest rates tend to improve global liquidity and risk sentiment, often leading to increased foreign inflows into emerging markets like India. There are also expectations that India's central bank, the Reserve Bank of India (RBI), may take a cue from the US Fed and go for a rate cut.
India's annual retail inflation also slowed to an eight-year low of 1.54 percent in September, leaving room for the RBI to cut rates one more time when it meets in December.
All 10 constituents of the Nifty Realty index were trading in the green. The rally was led by Sobha Ltd, which climbed more than 6 per cent, followed by Prestige Estates Projects and Lodha Developers, which gained around 4 per cent each. DLF and Anant Raj were among the other major gainers, advancing up to 3 per cent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Frequently Asked Questions
What caused the surge in real estate shares?
The surge in real estate shares was driven by optimism over potential rate cuts by the US Federal Reserve, which can improve global liquidity and risk sentiment.
How did the Nifty Realty index perform?
The Nifty Realty index rose over 3 percent, recovering from the previous day’s losses, as investors cheered comments from Fed Chair Jerome Powell indicating possible monetary easing.
What did Fed Chair Jerome Powell say?
Fed Chair Jerome Powell warned that the sharp slowdown in hiring is increasingly threatening the US economy, hinting at the possibility of two more rate cuts this year.
How did the Indian retail inflation affect the RBI's decision?
India's annual retail inflation slowed to an eight-year low of 1.54 percent in September, leaving room for the RBI to cut rates one more time when it meets in December.
Which real estate stocks performed the best?
The rally was led by Sobha Ltd, which climbed more than 6 per cent, followed by Prestige Estates Projects and Lodha Developers, which gained around 4 per cent each.
Related News Articles
Transforming India's Real Estate Sector: A Path to Growth
India's real estate sector is at a crossroads, awaiting policy reforms from the new government to boost growth and transparency.
Revitalizing Affordable Housing: Developers' Plea to Finance Minister
Real estate developers urge the Finance Minister to implement key budget reforms to enhance affordable housing prospects, including reinstating CLSS and revising the definition of affordable housing
Indian Markets Take a Breather After Recent Rally
Energy, healthcare, and pharma sectors led the gains, while media, real estate, and private banks lagged. The market's overall upward momentum remains strong, supported by ample domestic liquidity.
The Importance of Data Protection Laws in the Real Estate Industry
With the Digital Personal Data Protection Act (DPDPA) on the horizon, the real estate sector must adapt to stringent data protection requirements to ensure privacy and security of personal information.
2024: A Year of Transformation in Residential and Commercial Real Estate
2024 has been a landmark year for the real estate sector, with luxury homes and premium commercial properties dominating the market. The rise of REITs (Real Estate Investment Trusts) has further democratized investments, making the sector more accessible
Maharashtra's Record-Breaking FDI Influx in 2024: A Political Milestone?
Maharashtra Chief Minister Devendra Fadnavis announced that the state received a significant Rs 1.13 lakh crore in FDI within the first six months of 2024-25, matching the state's annual average over the past four years.