Realty stocks gain upto 4% on Cabinet nod to Real Estate Bill

Mumbai: Realty stocks gained as much as 4 percent ON after the Union Cabinet approved various amendments to the contentious Real Estate Bill.

Shares of Prestige Estates Projects climbed 4.43 percent, Unitech rose by 3.26 percent, while Housing Development and Infrastructure Ltd was up 1.95 percent.

Similarly, Puravankara Projects climbed 1.36 percent and DLF went up by 0.95 percent on BSE.

"Realty stocks remained in limelight today after Cabinet approved the Real Estate Bill that could boost investment in the presently ailing sector," said Achin Goel, Head - Wealth Management and Financial Planning, Bonanza Portfolio Ltd.

The Union Cabinet yesterday approved various amendments to the contentious Real Estate Bill, introducing provisions for depositing 70 percent of the project cost by builders into an escrow account and punishment for violations of the proposed law, meeting key opposition demands.

Reaching out to the opposition, the Cabinet, in its meeting approved a string of amendments to the Real Estate (Regulation and Development) Bill, 2015, aimed at protecting the interests of buyers and promoting investments in the sector while ensuring transparency.

Meanwhile, in the broader market, the benchmark BSE Sensex ended 216.27 points up at 25,252.32.