Real Estate Stocks Stand Tall As Global Rate Cut Bets Lift Sentiment

Nifty Realty Index was the biggest sectoral gainer in a strong market on Wednesday. All 10 constituents were trading in the green.

The index was up 3.6% in afternoon trade, gaining in four of the last five sessions.

Prestige (+5.4%), Sobha (+4.8%), Brigade (+4.3%) and Godrej Properties (+4.1%) were the top gainers in the index.

What is driving the real estate stocks today?

Federal Reserve Chair Jerome Powell warned of rising risks to the U.S. economy amid signs of a sharp slowdown in hiring. Speaking at the National Association for Business Economics annual meeting in Philadelphia, Powell said the Fed remains on course to deliver two more quarter-point interest rate cuts this year.

Expectations of lower US interest rates tend to improve global liquidity and risk sentiment, often leading to increased foreign inflows into emerging markets like India.

The Reserve Bank of India (RBI) is expected to mirror the U.S. Federal Reserve’s stance and may announce a rate cut in its December policy meeting. A softer monetary policy could further stimulate growth in India’s real estate sector, easing financing costs for both developers and homebuyers, said SEBI-registered investment advisor Nidhi Saxena.

The Federal Reserve’s dovish stance and the prospect of global rate cuts have created a strong tailwind for real estate stocks, she said.

The RBI’s December policy will play a decisive role in determining if this momentum continues. With improving liquidity and easier financial conditions, the real estate sector remains one of the most attractive thematic opportunities in the current market environment, Saxena added.

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