Property stocks on Thursday welcomed the rate cuts by the Reserve Bank and surged by over two per cent on the Bombay Stock Exchange in early morning trade as the move is likely to ease credit flow for developers.
The realty index surged by 2.11% to touch a high of 1,399.40 points. It was later trading at 1,397.48 points, up 1.97% with most of the constituents trading in the positive territory.
Marketmen said the realty counter gained strength from the fact that RBI's move would lead to an increase in liquidity. Besides, an expected slash in home loan rates would also boost housing demand.