Kolte-Patil Developers, Puravankara and Sobha were trading at their respective 52-week highs while NBCC (India), Delta Corp and Sunteck Realty hit record highs on the BSE in intra-day trade on Monday.
Sobha hit a fresh 52-week high of Rs 553 today rallied 41% in past 10-trading days, after the company announced Q2 pre-sales numbers. The company said that it achieved new sales value of Rs 593 crore in July- September quarter (Q2FY18) was the highest in the past 10 quarters. The real estate developer had reported sales value of Rs 518 crore in the same quarter last fiscal.
“With the onset of RERA and GST, we are already witnessing an increase in customer confidence and an improved market sentiment. We believe that credible players are likely to gain ground and unorganised players will be pushed out and we will witness consolidation in the sector,” Vikas Oberoi, Chairman & Managing Director, Oberoi Realty said while announcing Q2 results on October 16, 2017.
According to analyst at Edelweiss Securities, the key uncertainties (RERA & GST) appear to have largely settled. Despite near‐term sluggishness, we expect uptick in residential new sales in ensuing quarters across key markets.
“This, we believe, is likely to be driven by favourable macros, low interest rates, improving affordability and significant pent‐up demand in the system. Interest rate subvention for first‐time buyers from the middle income group (Rs 0.6‐1.8 million household income) should incentivise fence‐sitters to make purchases. We anticipate office space demand to remain robust with rising rentals and low vacancies,” the brokerage firm said in result preview.