Shares of real estate companies closed higher on Thursday as investors started accumulating some sector-specific beaten down stocks.
Property developer Unitech posted its best single-day gain in nearly 16 months, rallying 9.6 percent after JPMorgan upgraded the beaten down stock to “overweight” from “neutral”, citing cheap valuations, reasonable gearing, comfortable liquidity and high embedded land value.
The stock is still down nearly 39 percent this year.
The BSE Realty index was up 2.8 percent on Thursday, outperforming the benchmark index, which was up 0.8 percent.
Shares of Sobha Developers, Indiabulls Real Estate, Orbit Corp and Parsvnath Developers were up between 4 and 6 percent on Thursday.
Do you think it is the right time to invest in the sector which has dropped over 20 percent so far this year?