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India’s property stocks advanced to the highest in 15 years, signalling a potential breakout, as robust sales added to the optimism over the central bank’s decision to keep interest rates unchanged.
The S&P BSE Realty Index rallied as much as 4.8% Tuesday to its highest level since September 2008, as strong second-quarter sales reported by several developers lift expectations for the upcoming festive season. The NSE Nifty Realty Index climbed by a similar magnitude.
Puravankara Ltd said its sales more than doubled from a year ago, while Ajmera Realty and Infra India Ltd posted a growth of 52%.
Prestige Estates Projects Ltd on Friday said sales jumped 102% from the year-ago period.
The buoyancy in India’s real estate sector is in contrast with China, where a gauge of builders is trading at its lowest level in 12 years amid the country’s on-going property crisis.
Country Garden Holdings Co warned of a potential default, renewing concerns over the debt-laden industry.
In Mumbai, all 10 members of the BSE real estate gauge rose, with Prestige Estates Projects Ltd soaring as much as 19% to a record.