Realty stocks rally due to declining GST at home

Realty stocks rally due to declining | Trade Nivesh

TRADE NIVESH: Good news for people planning to buy a house. GST Council has reduced the rate of tax on residential houses. This shows the rise in real estate companies' shares on Monday. The fastest is seen in Oberoi Realty, Prestige Estate and Suntec Realty.
According to analysts, the real estate sector has consistently received two inquiries. Prior to the reduction in GST rates, the Reserve Bank of India (RBI) had cut interest rates. This sector was under constant pressure. Earlier, there was a ban on bank robbery. After that, the prices of homes increased due to the GST being implemented.

The NSE Realty Index gained momentum during the early trading on Monday. At 10.15 in the morning, the index was trading with an increase of 1.07 percent. On the index, only a slight weakness was seen in the shares of DLF. Shares of all other realty companies were bullish.

It is worth mentioning that in the year 2019, the BSE Realty Index was weaker than 1 per cent. Since the beginning of this year, shares of Godrej Properties and Oberoi Realty have shown an upward revision up to 10 per cent. However, due to political reasons, the shares of DLF have declined. Trade Nivesh

On Sunday, the GST Council has reduced the rate of tax on construction houses from 12 percent to 5 percent. Apart from this, the eight per cent tax on the affordable homes has been reduced to just one per cent. However, builders will not get input tax credit.

Anuaj Puri, chairman of Encore Property Consultants, said, "The affordable housing is being given a lot of encouragement and buyers of this class will get a lot of benefit, with this move, sales of homes in this category are expected to increase significantly."

Most companies have a lot of non-sale stock in this class. Alok Ranjan, Head of Research, 2 Wealth, said that the reduction in GST rates would give additional benefits to the sector. He said, "There is a positive news for companies with decrease in taxes with stable and soft interest rates."

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