CNX Realty index up 5%; DLF, HDIL surge 8%

Shares of real estate companies have rallied by up to 8% on the bourses after falling sharply in past couple of months.

DLF, Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, DB Realty and Oberoi Realty are up between 5%-8% while Unitech, Godrej Properties, Sobha, Delta Corp, Ashiana and NBCC have gained between 1%-4%.

At 10:20 AM, the CNX Realty index, the largest gainer among the sectoral indices, was up 5.2% compared to 1.2% rise in the CNX Nifty. The S&P BSE Realty index also rallied 5% against 1% rise in the S&P BSE Sensex.

Over the past six months, the realty indices had fallen 34% compared to 14% decline the benchmark indices till yesterday.

DLF has rallied 8% to Rs 119, extending its previous day’s nearly 4% gain on the BSE, after DLF Home Developers, a subsidiary of the company and Singapore's sovereign wealth funds GIC entered into a joint venture to invest in two upcoming projects in Delhi's Moti Nagar. While GIC will invest $300 million (around Rs 1,990 crore), DLF will develop the projects.

DLF Ltd