Realty stocks on the bourses rallied on Wednesday even as the market value of DLF Ltd, India's biggest real estate firm, crossed Rs 1-trillion mark on the hope that the Reserve Bank of India may not raise interest rates at a credit review later this month.
The scrip of billionaire K P Singh-led DLF, which listed on the bourses only on July 5, rose 3.27 per cent or Rs 18.70 on the Bombay Stock Exchange at Rs 590.45. Its market cap jumped to Rs 1,00,053 crore (Rs 1.00053 trillion) just before Wednesday's closing and settled at Rs 99,733 crore (Rs 997.33 billion) as compared to Rs 96,575 crore (Rs 965.75 billion) on Tuesday.
The DLF scrip witnessed demand after reports that the company emerged as the front-runner for developing an integrated township project in Bangalore, marketmen said.
DLF's market value had crossed Rs one-trillion mark during intra-day trade on the listing day itself when the scrip surged to Rs 714 on BSE, but ended below the level.
Besides, most realty stocks jumped amid expectations that the central bank may not increase interest rates at its quarterly credit policy review later this month. HDFC chairman Deepak Parekh also said yesterday rates have peaked and were unlikely to rise further.
Newly-launched realty index settled 3.38 per cent or 249 points up at 7,626.53 points as against 7,377.53 on Tuesday. Shares of Unitech, the second-biggest realty firm, rose 3.06 per cent at Rs 542.20.
Indiabulls Real Estate was biggest gainer as it soared 7.03 per cent to Rs 501.40 on the BSE. Other realtors like Parsvnath rose 1.94 per cent to Rs 383.25, while Mahindra Gesco increased 1.49 per cent to Rs 558.20 and Sobha Developers 1.98 per cent to Rs 955.
Of the 12 companies on the index, only one company - Anant Raj Industries - ended in the red with a loss of 0.29 per cent at Rs 1,290.
