Shares of real estate companies and housing finance businesses jumped on Thursday, reacting to the government’s approval to establish a special window fund to provide priority debt financing for the completion of stalled housing projects in the affordable and middle-income housing sector.
While the government has committed Rs 10,000 crore, FM Nirmala Sitharaman on Wednesday said that she has spoken to SBI, LIC and several sovereign funds to take the corpus of realty alternative investment fund to Rs 25,000 crore.
Shares of Sobha Ltd rallied as much as 8 percent, Indiabulls Real Estate jumped almost 5 percent to Rs 70.20, Prestige Estates Projects was up by 3.8 percent, while Oberoi Realty surged 4.47 percent.
State-owned NBCC India’s climbed a massive 21 percent in intraday trade on Thursday to Rs 45.80 on NSE.
The government’s funding push is expected to bring additional inventory into the system to push affordable and mid-housing projects.
It will also push growth in related sectors like housing finance, cement and steel.
Housing finance stocks like Indiabulls Housing Finance, LIC Housing Finance and PNB Housing Finance jumped 15 percent, 6.5 percent and 7 percent, respectively.
