Tuesday 4 November 2008

Realty stocks ride high on FM's assurance

As the Finance Minister assured housing and SME sectors of adequate liquidity availability and hoped that interest rate cuts will help credit
flow more freely, realty stocks surged by as much as 12.14 per cent on the Bombay Stock Exchange on Tuesday.

Reflecting the upbeat mood of the realty stocks, the BSE Realty index turned best performer among sectoral indices, with a hefty rise of 260.16 points, or 12.14 per cent, at 2,402.44 points after touching an intra-session high of 2,436.93 points.

All the 14 components of the sectoral indice recorded gains in the range of 2.31 to 14.66 per cent.

Sentiments turned bullish after Finance Minister P Chidambaram's statement that adequate liquidity would be provided to housing sector. RBI would soon take a decision on extending a line of credit of Rs 10,000 crore to the National Housing Bank to ensure that adequate funds were available for the housing sector.

Stock analysts said expectations that state-run banks would ill interest rates following a slew of measures announced by RBI last week-end accelerated buying interest in realty stocks, one of the hardest hit segments on the bourses.

They said the cut in rates would improve liquidity in the market and lower borrowing cost for corporates.

Source: EconomicTimes

Posted by Harsh at 06:18

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.