Repo Rate Nifty Realty Index rises 1.55% as RBI keeps repo rate unchanged
Mumbai/IBNS: The rate-sensitive Nifty Realty Index on Friday surged over 1.55 percent as the Reserve Bank of India (RBI) kept the repo rate and liquidity stance unchanged during the June 2024 monetary policy review.
The repo rate is a key determinant of interest rates in the economy as this is the rate at which the central bank lends money to commercial banks.
According to reports, changes in the repo rate in the realty sector can significantly impact borrowing costs and, consequently, demand for real estate.
After RBI governor Shaktikanta Das announced to keep the lending rate unchanged at 6.5 percent in the bank's new monetary policy, the Nifty Realty index surged over 1.55 percent, whereas Indian realty majors Oberoi Realty and Sobha hit a new peak, reports said.
As per data, shares of Suntech Realty shot up over 8 percent.
Stock market experts said the realty sector is a rate-sensitive segment, and the central bank keeping the repo rate unchanged has boosted the morale of Dalal Street bulls regarding the rate-sensitive segment.
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