Realty stocks in focus

RBI yesterday changed the statutes of lending for real estate investment trust (Reits) and infrastructure investment trust (InvIts). It has capped the exposure to 10% of the unit capital of such instruments. RBI stated that banks should not invest more than 10% of the unit capital of a Reit or an InvIt subject to overall ceiling of 20% of its net worth.

RBI also prohibited banks from becoming a professional clearing member of commodity derivatives segment of Sebi-recognised exchanges unless it satisfies certain prudential criteria.

The central bank also prohibited banks from offering broking services for commodity derivatives segment of Sebi recognised stock exchanges except through a separate subsidiary set-up for the purpose or one of its existing subsidiaries.

These new rules have once again brought the realty stocks in the limelight today, which is why you have India Bull Real Estate  and DHFL among the top five gainers on the BSE, up over 4.6% and 3.5% respectively. The S&P BSE Realty Index is up 1.3% currently with 8 out of the 10 stocks in the index quoting in the green.