After delivering robust gains last week, real estate stocks saw marginal declines on June 9 as investors booked profits at elevated valuations. The BSE Realty Index had surged nearly 10% in the week ending June 7—making it the best-performing sectoral index—on the back of the Reserve Bank of India’s (RBI) unexpected 50 basis point repo rate cut.
The central bank’s decision, which lowered the policy rate to 5.5%, was steeper than the 25-bps cut anticipated by many analysts. The move was widely seen as a positive trigger for the real estate sector, as it is expected to reduce home loan EMIs, improve affordability, and ease borrowing costs for developers—thereby supporting both housing demand and project financing.
During the rally, Sobha Ltd. led the pack with an 18% gain, followed closely by Prestige Estates and Brigade Enterprises, each rising around 17%. Other notable gainers included DLF, Godrej Properties, Macrotech Developers (Lodha), Signatureglobal, Phoenix Mills, and Anant Raj, with gains ranging from 3% to 10%. In contrast, other sectors such as financial services, metals, auto, and healthcare posted modest increases, while IT and capital goods registered minor losses.
However, on June 9, realty stocks showed signs of moderation. The Nifty Realty Index slipped slightly to trade around 1,038 in the morning session, ending a two-day winning streak. The index had previously surged 4.7% in the June 6 session alone, immediately after the RBI announcement.
Among the key movers on Monday, Anant Raj rose by 2%, while Raymond, Sobha, and Phoenix Mills posted marginal gains. On the other hand, shares of Prestige Estates, Brigade Enterprises, Oberoi Realty, Macrotech Developers, DLF, and Godrej Properties edged lower amid profit-taking.
Analysts attribute the mild correction to near-term consolidation, noting that much of the policy optimism had already been priced into last week’s rally. They also flagged global market uncertainty and a cautious tone among institutional investors ahead of key inflation data, which could influence future rate actions.
Despite the short-term pullback, the medium-term outlook for the sector remains positive. The RBI’s accommodative policy approach and the improving interest rate environment are expected to support continued demand momentum, especially if the current trend of lower rates persists.
