Nifty Realty index movement
Shares of real estate companies were in focus, with the Nifty Realty index surging 3 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day deals on expectations revenue growth recovery, supported by strong demand for luxury housing.
The Nifty Realty index soared 3 per cent to 920.35 on the NSE in intra-day deals. In the past three months, real estate index outperformed the market by soaring 21 per cent, against a 2 per cent gain in the Nifty 50.
At 01:42 PM, the Nifty Realty index was the top gainer among sectoral indices, up 2.2 per cent, compared to a 0.03 per cent decline in the benchmark index.
Among stocks, Anant Raj rallied 9 per cent to ₹640.25 on the back of heavy volume. A combined as many as 21.23 million equity shares changed hands on the NSE and BSE. Anant Raj plans to demerge its data center and cloud business into a separately listed entity, Ashok Cloud, with the scheme already filed with the exchanges.
Stock performance of real estate companies rallied between 15-20 per cent over the past three months despite mixed sales performance, drived by inexpensive valuations and healthy balance sheets.
Why real estate stocks outperformed?
India’s real estate sector plays a pivotal role in the country’s economic growth and transformation. The sector is the second-largest employment generator after agriculture and continues to benefit from rapid urbanisation, rising household incomes, increasing nuclearisation of families, infrastructure expansion and favourable policy support. The sector’s market size is estimated at $650 billion in FY25 from $180 billion in FY20 and is projected to reach $1 trillion by FY30.
Favourable policy measures, including lower interest rates, GST rationalisation, and continued government focus on housing and infrastructure development, are expected to strengthen affordability, improve liquidity, and support demand in the real estate sector. Rising urbanisation, increasing disposable incomes, preference for quality developments and expanding connectivity infrastructure are expected to drive growth across key markets. With improving consumer confidence and growing demand for premium and integrated developments, the sector remains well-positioned for long-term expansion, Anant Raj said in its FY26 annual report.
Meanwhile, industry volumes remained range-bound for three years in a row, even as larger developers continue to grow through a combination of geographical diversification and improving market share. Listed players had a mixed showing in the April to June 2026 quarter (Q1FY27) (down 33 per cent year-on-year (YoY))), on account of the high base set by strong sales for DLF and Prestige in the base quarter. Sobha (+76 per cent YoY) and Godrej Properties (+22 per cent YoY) stood out in their quarterly performance, analysts at Kotak Institutional Equities said in the real estate sector report.
The brokerage stated that valuations for most developers are inexpensive at 4-9X adjusted (Enterprise Value to Earnings before Interest, Taxes, Depreciation, and Amortization) (2028E), despite the improved stock performance in the past three months.
Oberoi Realty is poised for a strong year, with ₹8,100 crore of sales from 360 North to be booked in Q2FY26, while Godrej and Sobha also appear to be on a steady footing. Valuations for DLF and Brigade factor in modest sales following a weak start in Q1FY27, the brokerage firm said.
Meanwhile, ICRA estimates the pre-sales of Godrej Properties to increase by 10-15 per cent, which along with adequate construction progress is likely to result in an improvement in collections in FY27.
Healthy sales from new launches as well as the existing projects translated into adequate operating cash inflows, while rendering visibility to future collections from the pending receivables. The ‘Stable’ outlook on the rating reflects ICRA’s opinion that Godrej Properties will benefit from its healthy operating performance and will likely sustain growth in sales and collections, backed by a strong launch pipeline, while maintaining comfortable leverage metrics. Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers’ discretion is advised.
