Godrej Properties, DLF to Oberoi Realty: Realty stocks rise after RBI MPC meeting, Nifty Realty jumps over 3%

Stocks in the real estate sector experienced gains after the RBI's Monetary Policy Committee meeting, where the market saw significant announcements regarding rate cuts and a reduction in the Cash Reserve Ratio (CRR) by RBI Governor Sanjay Malhotra. Shares of Godrej Properties, DLF, Oberoi Realty, Prestige Estates Projects, Sobha, jumped 3% to 6%.

Nifty Realty experienced a surge of over 3%, with all stocks in the realty indices showing positive movement, except for Raymond, which was the only stock trading in the red.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Nifty Realty is witnessing a strong tick post the RBI policy gaining more than 2.5%, broad based buying is seen, and further up move is expected in near term. Traders can maintain positive bias using minor dips to buy, DLF, Lodha, and Godrej Properties are the top picks from this space.

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities explained that realty stocks are in action following the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) surprising move to cut the repo rate by 50 basis points—double the street's expectation of 25 bps. This unexpected reduction brings the repo rate down to 5.5%, marking the third consecutive rate cut in 2025, with a cumulative reduction of 100 basis points.

This aggressive monetary easing aims to stimulate economic growth, reduce borrowing costs, and make home loans more affordable, directly benefitting the real estate sector. The RBI’s move is expected to enhance banking system liquidity, empowering lenders to pass on the benefit to homebuyers more effectively.

"With this supportive policy stance, I anticipate a strong revival in housing demand and real estate investment over the next 2–3 years, particularly in the affordable and mid-income housing segments.

On technical basis, we advise better to book profits after recent rally in the sector," said Tapse.

Further, Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group stated that for the real estate sector, this rate reduction is set to bolster credit lending, accelerate buying velocity, and enhance development momentum. The resulting decline in home loan interest rates will directly benefit homebuyers by improving affordability and cushioning their financial commitments. 

Lower mortgage rates make home ownership more attainable, driving greater demand and fostering stronger sales indices. Additionally, this move could spur refinancing activity and strengthen investment interest in branded properties known for their attractive returns, particularly among Grade A developers.

RBI repo rate news

RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points, bringing it down to 5.50% effective immediately. As a result, the standing deposit facility (SDF) rate will be adjusted to 5.25%, while the marginal standing facility (MSF) rate and the Bank Rate will be set at 5.75%.

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