Real estate stocks were in focus after CLSA said the push towards data centres and global capability centres (GCCs) is likely to offset concerns related to Minimum Alternate Tax (MAT), with long-term positives outweighing the mid-term impact.
CLSA noted that tax clarity and easing of compliance norms are supportive for annuity-focused real estate developers. The brokerage added that the tax holiday extended till 2047 for foreign data centre companies is a key positive for the sector and provides long-term visibility for developers aligned with this theme.
However, CLSA flagged that restrictions on MAT credit remain a near-term negative for the real estate space. Despite this, the brokerage believes that structural drivers linked to data centres and GCC-led demand provide stronger long-term support, outweighing the mid-term impact of MAT-related issues.
Within the sector, CLSA identified DLF and Embassy REIT as its top picks.
Disclaimer: This article is based solely on brokerage inputs provided by the user. The views expressed are those of the brokerage and do not constitute investment advice or recommendations by the publication.
