GST Update: Realty stocks buzzing, Nifty Realty up 2 per cent

Realty stocks ring-in the new year with handsome gains. Prestige was up by 5 per cent, while Godrej Properties, Oberoi Realty, Unitech, DLF, Brigade were up by 3 to 2 per cent gains on Tuesday, the first day of the year 2019.

Nifty Realty Index was the best performing sectoral index in the morning session, up by 2.47 per cent, followed by Nifty Pharma and Nifty PSU Bank were up close to 0.40 to 0.30 per cent, respectively.

The GST Council in its recent review meeting considered proposals to cut GST rate applicable on real estate, this is expected to make flats cheaper soon. The council is schedule to meet in January. The central government is planning to bring under-construction flats under the 5 per cent slab, and to avail this rate, builders have to source their raw material from GST paying suppliers.

Also, another reasons for this uptick in realty stocks is the sector is experiencing renewed investor interest as an alternative asset to equities.

Meanwhile, the benchmark indices were experiencing a slightly selling pressure after opening green on the first day of the year. Nifty50 was trading at 10,832.75, down by 29.80 points or 0.27 per cent and BSE Sensex was at 35,983.15, down by 85.18 points or 0.24 per cent, at 11:43 hours.