Realty Index Surges for Fifth Consecutive Session, Leading Nifty Gainers

The Nifty realty index has emerged as the top sectoral gainer on Wednesday, extending its rally for the fifth consecutive session. This momentum is supported by gains in key stocks such as Prestige Estates Projects and DLF.

The realty index rose about 7 percent during the session and has gained over 14 percent in the last five trading sessions. Today's sharp rally followed the Reserve Bank of India’s decision to keep the key policy rate unchanged, maintaining a cautious stance amid global uncertainties.

The central bank’s six-member Monetary Policy Committee unanimously decided to hold the benchmark repo rate at 5.25 percent. This decision was influenced by heightened uncertainty after the West Asia conflict impacted crude prices, weakened the rupee, and disrupted trade flows. The policy stance was retained at neutral.

Commenting on the policy decision, B K Malagi, Vice Chairman of Experion Developers, said that stability in interest rates supports the housing sector by maintaining affordability and enabling long-term planning. This stability is crucial for the real estate market, which has been under significant pressure due to ongoing geopolitical tensions.

Prestige Estates Projects was the top gainer on the index, rising around 9 percent. The stock also saw buying interest after the company reported a 10 percent increase in pre-sales to Rs 7,697 crore in the fourth quarter of the previous fiscal. According to its operational update, the company’s pre-sales rose to Rs 30,024 crore in 2025-26, marking a 76 percent increase over the preceding year.

Among other major stocks, DLF, Godrej Properties, and Oberoi Realty advanced between 5 percent and 7 percent. Ajit Mishra, SVP – Research at Religare Broking, noted that realty had witnessed a sharp correction in the recent corrective phase and was trading in extreme oversold conditions. The current recovery is in sync with other rate-sensitive sectors like banking and auto. However, participants should remain selective after this bounce and stick only with quality names for fresh buying, as earnings will largely dictate the trend from hereon.

The RBI’s decision comes amid ongoing geopolitical tensions, including the US-Iran conflict, which has weighed on the sector. The residential real estate sales are showing signs of weakness after a period of stability, with the National Capital Region and Pune witnessing the highest stress, according to Knight Frank India.

Gulam Zia, senior executive director at Knight Frank India, said the market had been on an extended upcycle and a correction was expected given the cyclical nature of real estate. Data for the March quarter showed overall sales declined compared to the year-ago period, while new launches continued to outpace sales across most markets.

Despite the challenges, the real estate sector remains a critical component of the Indian economy, and the recent gains indicate a potential recovery. However, investors should remain cautious and focus on quality stocks with strong fundamentals.