Realty Stocks Slide Ahead Of RBI Policy Review; Prestige Estates, Lodha Lead Losses

Real estate shares declined on June 3 as investors awaited the Reserve Bank of India’s monetary policy decision, with the sector facing broad-based selling amid uncertainty over the interest-rate outlook and weakness across equity markets.

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The Nifty Realty index fell nearly 2% during intraday trade, slipping to 758.90 from its previous close of 773.35. The index touched a high of 773.70 and a low of 753.80 during the session as selling pressure intensified across major real estate counters.

Prestige Estates Projects emerged as the biggest loser within the index, dropping 3.71% to ₹1,343.20. Macrotech Developers, which operates under the Lodha brand, declined 3.04% to ₹876.30, while DLF fell 2.25% to ₹578.55. Godrej Properties traded 1.55% lower at ₹1,693.90, while Anant Raj slipped 1.33% to ₹544.85.

Focus Shifts To RBI Policy Outcome

Market participants remained focused on the outcome of the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting.

A survey of economists, treasury officials and fixed-income market participants indicated that the central bank is expected to maintain the benchmark policy rate at current levels. The expectation comes amid concerns over rising crude oil prices, inflation risks and pressure on the rupee.

The interest rate is a key determinant of the performance of the realty market since the cost of borrowing affects the viability of loans for house purchases. As a consequence, real estate shares exhibit sensitivity to any policy changes.

High Trading Volumes Continued

Although the prices of shares have fallen, trading volume was high in many realty shares. DLF, whose stock was traded over 22 lakh times on the NSE, registered one of the highest levels of trading volumes in the realty sector. Anant Raj followed with over 20 lakh shares changing hands, while Macrotech Developers registered volume of more than 14 lakh shares. The activity reflected continued investor interest in the sector despite the day’s weakness.

IT Sector Decline Adds To Pressure

The fall in real estate stocks also coincided with a sharp correction in information technology shares.
The Nifty IT index has declined nearly 23% so far in 2026, wiping out approximately ₹6.6 lakh crore in market capitalisation. Worries about global technology expenditure, disruptions from artificial intelligence, and geopolitics have been dragging down the industry.

The performance of IT stocks is being monitored by the real estate industry in areas that are key residential centers for IT employees, where they form a substantial chunk of home buyers. Any decline in hiring or worries about hiring can affect expectations about home buying.

While publicly traded builders have kept making inroads into the market in recent years, the focus of investors has remained on variables like interest rates, economy growth, corporate profitability and employment, all of which will determine the future direction of the real estate industry in the quarters ahead.