Shares of real estate companies witnessed a surge as investors cheered the central bank’s decision on REITs.
The Reserve Bank of India (RBI) on Thursday allowed banks to invest in real estate investment trusts (REITs) as well as infrastructure investment trusts (InvITs).
A REIT is a special form of corporation that invests primarily in real estate. REITs do not pay federal income taxes as long as they pay out 90% of their earnings to shareholders in the form of dividends.
As a result, DLF, Prestige Estates, Unitech, and Godrej Properties, among others surged between 1 and 6 percent intraday. A few of them even clocked their 52-week highs.
At 14:45 hrs, real estate major DLF was quoting at Rs 156.65, up Rs 6.95, or 4.64 percent on the BSE.
Meanwhile, Prestige Estates Projects was quoting at Rs 230.25, up 3 percent.
Sobha, on the other hand, was quoting at Rs 406.35, up Rs 6.50, or 1.63 percent. It touched a 52-week high of Rs 417.00. Meanwhile, Unitech was quoting at Rs 6.06, up Rs 0.21, or 3.59 percent.
Godrej Properties too clocked 52-week high of Rs 452.2, up 2.14 percent.