The pinned down realty sector has been soaring high for the past two days on expectations of an interest rate cut by the Reserve Bank of India following US Federal Reserve’s move.
As a pre-emptive step, IDBI has already announced cut in home loan rates.
The BSE Realty index was up 7.29 per cent higher than its previous after day up 5.77% at 8,464.54.
"The rise in realty sector is mainly due to the Fed rate cut. Firstly, the market expects RBI to follow suit with an interest rate cut, and secondly, cash inflow has spiked up the sector," said an analyst from a local brokerage firm.
Due to the sub-prime crisis in the US, investors were shying away from realty stocks. However, Fed’s move has revived sentiment in the sector.
Unitech topped the realty index gaining 12.45 per cent, Indiabulls Real Estate was up 9.25 per cent, DLF was up 6.16 per cent, Ansal Infra was up 4.35 per cent.