Majority of realty stocks turn into multibaggers; top stock Sobha delivers towering 5x returns!

What’s more striking is the fact that the majority of real estate stocks have been multi-baggers, barring one stock

The Indian benchmark indices staged a strong comeback after an initial kneejerk reaction to the fragile global cues. After opening lower, the buying interest was seen right from the word go as Nifty formed an open=low scenario, where both low as well as the opening price was similar. Thereafter, slowly but steadily, the bulls climbed the staircase while in the last leg of the trade, momentum sparked and indices closed near the day’s high.   

Nifty closed with gains of nearly 0.41 per cent and reclaimed its 16,300 mark while Sensex too added 0.47 per cent to reclaim the 54,700 mark. Buying interest was seen across the board; hence, the advance-decline ratio was strongly in favour of bulls. Meanwhile, all the sectors participated in the rally, barring Nifty Pharma and Nifty Media. However, one sector stood out with its brilliant performance as it jumped over 2.5 per cent and was the top-performing sectoral index.   

In fact, in the last two trading sessions, the sector gained nearly 4 per cent while on an MTD basis, it delivered an eye-popping return of 13.21 per cent and has been the show-stopper. Nifty Realty index is inside the improving quadrant and is seen maintaining and further improving its relative momentum against the broader Nifty 500 index.   

Talking about Nifty Realty index, let us examine how the stocks from this index have performed since March 2020 (closing) to date: 

So, investors, who bought these stocks and followed the saying of Nathan Rothschild, “the time to buy is when there’s blood in the streets” would have been rewarded handsomely as all the stocks from this index have been in green with Sobha Ltd leading from the front. Construction company Sobha Ltd delivered towering gains of over 400 per cent, followed by Brigade Enterprises, which jumped 270.34 per cent.   

What’s more striking is the fact that the majority of real estate stocks have been multibagger">Multi-bagger, barring one stock i.e. Indiabulls Real Estate, which advanced over 60 per cent during the same period.