Despite reporting a dip in net profits, the stock of DB Realty soared on the bourses on Monday. The stock closed at Rs 125, up about 10 per cent on the Bombay Stock Exchange (BSE).
Analysts said there is a general impression that the real estate sector will do well in the coming days. “There is a feeling that the real estate sector will be the ‘sector’ in the New Year. A number of projects are getting completed and there is a general belief that the money flow will start,” said Arun Kejriwal, Founder, KRIS Research.
The stock has increased from Rs 94 to Rs 125 in the last one month. Billionaire investor Rakesh Jhunjhunwala has also been increasing his stake in the company.
It is a sort of herd mentality, said analysts.
The Realty Index was up 0.87 per cent on the BSE. The portfolio of DB Realty consists of 95 million square feet of prime property across 33 projects.