Nifty Realty Index Rallies 24% in April; What's Driving Sector?
The Nifty Realty index has seen a significant surge of 24% so far in April, with shares of real estate companies continuing their upward movement. The index was the top gainer among sectoral indices, up 3% on the National Stock Exchange (NSE) in Tuesday's intra-day trade.
Top Gainers in the Realty Sector
- Sobha: Up 3-4% on the NSE
- Godrej Properties: Up 3-4% on the NSE
- Phoenix: Up 3-4% on the NSE
- Anant Raj: Up 3-4% on the NSE
- Lodha Developers: Up 3-4% on the NSE
- Oberoi Realty: Up 3-4% on the NSE
- Aditya Birla Real Estate: Up 3-4% on the NSE
Oberoi Realty's Strong Operational Update
Oberoi Realty released a strong operational update for Q4FY26 and FY26, with presales for Q4FY26 at ₹1,673 crore, up 96% year-on-year (YoY) and 100% quarter-on-quarter (QoQ). Presales for FY26 at ₹5,447 crore, up 3% YoY.
Analysts' Views on the Realty Sector
Analysts at Kotak Institutional Equities note that the stock correction in the real estate sector is excessive, assigning little credit for cash flows from the development business and near-zero value to land. They expect the margin impact from cost increases to be 200-300 bps, which could increase up to 500 bps in the scenario of elongated tensions.
Key Takeaways
- The Nifty Realty index has rallied 24% so far in April.
- Oberoi Realty's strong operational update has driven the sector's upward movement.
- Analysts expect the margin impact from cost increases to be significant.
Disclaimer
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