Realty stocks down despite thrust on affordable housing in the Union Budget1 min read . Updated: 05 Jul 2019, 12:28 PM IST
- The government plans to build 19.5 million rural houses
- Realty Index fell over 1% in noon trade on Friday
Mumbai: Shares of realty companies were down despite thrust on affordable housing in the Union Budget. Realty Index fell over 1% in noon trade on Friday. Among stocks, Oberoi Realty fell 3.3%, Prestige Estate 2.2%, Sunteck declined 2.1%, DLF 1%, Indiabulls Real Estate 0.5%.
Finance Minister Nirmala Sitharaman in the Union Budget said the government plans to build 19.5 million rural houses in the second phase of its “Housing for All" programme. In the last five years, the government has built 15 million rural houses, she said.
Analyst are focusing fiscal deficit and borrowing targets with focus on any tax reforms. According to a Bloomberg survey government will widen the budget deficit target to 3.5% of GDP at upcoming budget, up from a February estimate of 3.4%.
"Given the clear-cut mandate, the government has never before opportunity to make bold announcements in this budget. Apart from privatization or corporatization of the government institutions to limit the drag on the balance sheet, measures to drive investments, which have been under pressure, would be welcome. Reforms in the agriculture sector to boost the income of the farmers could be a major focus. To further stimulate economic growth and accelerate corporate earnings, the government should also consider a reduction in the corporate tax rate for all the companies" said Arun Thukral, MD & CEO at Axis Securities .
Finance minister Nirmala Sitharaman is presenting her maiden budget at a time when the economy is showing signs of slowing down amid tepid tax collection. Consumer demand which has been the only engine so far driving the economy also looks vulnerable now.
Earlier on Thursday, chief economic adviser said the government will keep its fiscal deficit under control as it sees a rebound in economic growth from a five-year low. The Finance Ministry said growth will probably reach 7% in the current fiscal year that began on April 1. The government will seek to avoid undermining private investment by widening the fiscal deficit, Krishnamurthy Subramanian, author of the Economic Survey report and chief economic adviser, told reporters Thursday.
So far this year, Sensex and Nifty have gained nearly 10% each while foreign investors bought $11 billion and domestic institutional investors sold ₹7173 crore in equities.