Economy News

Expert’s take on Post Budget impact on Real Estate Sector

While the stakeholders have welcomed Budget 2021’s various amendments, the real estate industry is expecting more from the budget.

From health to infrastructure, the various announcements in the budget are being seen as a measure to revive the economy.

Recently, Nirali Shah of Samco Securities said in an interview that in many large cap stocks, the open interest (OI) has halved from their peak seen in the October-November.

Further, this indicates that traders are skeptical in terms of keeping their positions open in futures and commit at such elevated levels respectively.

Moreover, with the FM announcing the extension of tax holiday for affordable housing projects by one more year, there is likely to be more supply in the market, with new launches gaining pace once again.

Increased focus on infrastructure growth and capital expenditure, will impact the overall growth of the real estate sector too.

Also, good infrastructure will propel the development of real estate, both, commercial and housing, along the transit corridors, highways and newly-proposed airports.

However, stakeholders are still hoping for a bonanza for first-time home buyers and real estate investors.

The real estate sector, which contributes more than 8% to the Indian economy and is the second-largest employer after agriculture, is looking for a big push from the government in the form of policy support for its recovery and smooth functioning.

Midcap financials could also witness growth post their robust Q3 performance.

Investors should therefore keep their watchlist ready and enter on dips in this range-bound market.

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