Real Estate Stocks Plunge as RBI Decision Looms: Prestige and Lodha Suffer
Real estate stocks traded lower on Wednesday, ahead of the Reserve Bank of India's (RBI) monetary policy decision, as investors awaited cues on the interest-rate outlook. The Nifty Realty index declined 1.87% to 758.90, after touching an intraday high of 773.70 and a low of 753.80, against its previous close of 773.35.
Among the constituents, Prestige Estates Projects was the worst performer, falling 3.71% to Rs 1,343.20. Macrotech Developers (Lodha) slipped 3.04% to Rs 876.30, while DLF declined 2.25% to Rs 578.55. Godrej Properties fell 1.55% to Rs 1,693.90, and Anant Raj was down 1.33% at Rs 544.85.
Among actively traded counters, DLF saw a volume of 22.02 lakh shares, followed by Anant Raj with 20.37 lakh shares and Lodha with 14.04 lakh shares on the NSE.
Despite the market downturn, brokerages remain positive on leading listed real estate developers. Emkay Global Financial Services noted, 'While we expect the overall market to move into a slower growth phase in FY27, listed developers should continue to outperform the broader market due to consolidation, branded demand shift, and premium segment resilience.'
The residential market saw growth moderating in FY26, reflecting a high base and normalization after the upcycle. Emkay Global Financial Services further stated, 'We believe four indicators—office leasing, corporate earnings, wages, and interest rates—are key indicators for real estate demand. Going forward, owing to uncertainties revolving around AI and geopolitical tensions, we remain cautious on the overall residential real estate outlook and expect growth to further slowdown.'
The weakness in realty stocks also comes amid a sharp selloff in information technology shares. The Nifty IT index has fallen nearly 23% so far in 2026, eroding around Rs 6.6 lakh crore in market value. Concerns over the impact of artificial intelligence on jobs, softer global demand, and geopolitical tensions in West Asia have contributed to this decline.
Market participants often view the IT sector as a key demand driver for residential real estate, particularly in major urban centers. Any slowdown in hiring or concerns over job losses in the technology sector can weigh on housing demand sentiment, adding pressure on realty stocks.
