Real estate stocks surged on June 6 after the Reserve Bank of India (RBI) announced a surprise 50 basis point cut in the repo rate during its bi-monthly policy review. The Monetary Policy Committee (MPC) voted 5-1 in favour of the sharp cut, taking the benchmark lending rate down to 5.50%. The move is seen as a strong signal to revive growth, particularly in interest rate-sensitive sectors such as real estate.
DLF rose 3.88% to ₹857.70, Godrej Properties jumped 4.65% to ₹2,419.60, and Prestige Estates gained 2.51% to ₹1,666.90. Other notable gainers included Oberoi Realty (up 2.44%), Sobha (2.60%), and Macrotech Developers (1.65%). The broader sector reaction signals investor optimism, especially in affordable and mid-income housing segments that had lagged luxury housing after the 2022–23 rate hikes.
The MPC also shifted its policy stance from “accommodative” to “neutral” and revised the FY26 CPI inflation forecast to 3.7%, down from 4% earlier. The quarterly inflation trajectory is projected at 2.9% in Q1, 3.4% in Q2, 3.9% in Q3, and 4.4% in Q4. The central bank attributed the easing inflation outlook to strong Rabi crop output, record wheat and pulses production, and expectations of a favourable monsoon season.
The outlook for inflation remains benign, with moderating trends in both rural expectations and key commodity prices, including crude oil. However, the RBI has also cautioned about potential weather-related disruptions and global tariff uncertainties.
The rate cut, coupled with a soft inflation outlook, is expected to improve affordability and demand in the residential real estate market, especially in segments that have been under pressure in recent quarters.
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