Nifty Realty Index outperforms Nifty 50. What is the driving force behind the rally?

Nifty Realty Index outperforms Nifty 50. What is the driving force behind the rally?

by 5paisa Research Team Last Updated: Nov 16, 2021, 12:21 PM IST

Nifty Realty Index has outperformed the Nifty 50 on a YTD basis. Here are the top three stocks of Nifty Realty!

The NIFTY Realty Index is designed to reflect the performance of real estate companies that are primarily engaged in the construction of residential and commercial properties. The rescheduling of index constituents happens bi-annually every year.

Nifty Realty has outperformed Nifty 50 on a YTD basis delivering staggering returns of 74.91% returns as against 29.25% of Nifty 50. The aforementioned performance can be attributed to the fact that the real estate companies are performing exceptionally well in recent times and the government’s supportive policies towards development and infrastructure promote the overall development of the real estate business.

Speaking of Nifty Realty, it has gained a massive 125% year-on-year basis while its three-month performance stands out at 39%. Nifty Realty is above all its key moving averages and RSI is strong at 60. It looks strong on technical factors as it continues to achieve newer highs. Not only Nifty Realty looks strong in short term, but it also has the potential to perform well in longer-term too.

In today’s trading session, the Nifty Realty index is seen trading flat with positive bias despite the fact the markets are reeling under selling pressure.

Nifty Realty constitutes 10 stocks which are Macrotech Developers, Oberoi Realty, Brigade Enterprises, Prestige Estate, DLF, Sunteck Realty, Indiabulls Real Estate, Godrej Properties, Sobha limited and Pheonix Limited. The index heavyweights are DLF and Godrej properties which have a weightage of 25.07% and 23.69% respectively. Some stocks of the realty sector have delivered more than 100% return on a YTD basis and have turned out to be multibagger stocks. They are the main driving force behind Nifty Realty’s stupendous rally. Even the underperforming stocks in the Nifty Realty pack have delivered a mind-boggling return in the range of 40-45 % YTD, which shows that the index, as a whole is extremely bullish.

The three stocks that have turned multibagger on a YTD gaining more than 100% returns:

  • Indiabulls Real Estate- 127.68% 

  • Sobha- 113.25%

  • Brigade Enterprises- 102.73%
     

SENSEX
54,052.61
-236.00 (-0.43%)
Nifty 50
16,125.15
-89.55 (-0.55%)
Nifty Bank
34,290.15
42.55 (0.12%)
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SENSEX
54,052.61
-236.00 (-0.43%)
Nifty 50
16,125.15
-89.55 (-0.55%)
Nifty Bank
34,290.15
42.55 (0.12%)

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