Realty, Housing Finance stocks gains post RBI outcome - Highlight Investment Research

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Thursday, 6 February 2020

Realty, Housing Finance stocks gains post RBI outcome

Shares of Realty and Housing Finance companies gained in the afternoon session on Thursday’s trade after Reserve Bank of India provided an extension of the timeline for commercial real estate projects. It said that the extension of Date of Commencement of Commercial Operations (DCCO) of project loans for commercial real estate will be permitted to be extended by a year without downgrading asset classification.
LIC Housing Finance, L&T Finance and Shriram Transport stocks zoomed over 7%, HDFC, M&M Finance and Bajaj Finance were up 1% each.
Shares of Brigade Enterprises climbed 3%, SOBHA, Godrej Properties, Oberoi Realty, Phoenix Mills, Prestige Estates Projects and Sunteck Realty were up 1% each.




The RBI said that "it has been decided to permit extension of date of commencement of commercial operations (DCCO) of project loans for commercial real estate, delayed for reasons beyond the control of promoters, by another one year without downgrading the asset classification, in line with treatment accorded to other project loans for non-infrastructure sector. This would complement the initiatives taken by the Government of India in the real estate sector".

Today, the central bank also kept GDP growth rate unchanged for the current fiscal at 5% and projected a pick-up in growth to 6% in the next financial year.

The Sensex was trading at 41,256, up 114 points and the Nifty was trading at 12,1374, up 24 points.

IndusInd Bank, Zee, State Bank of India, Yes Bank and Bharti Airtel were the top gainers on Nifty50, while Tata Motors, Cipla, Titan Company and BPCL remained top losers.


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