Sizzling rally in realty stocks seen extending on rates

India’s property stocks have risen by 36% since March, with investors anticipating that the central bank could cut interest rates next year. Cooling inflation has allowed the Reserve Bank of India to keep rates unchanged, in contrast to China where the property sector remains in a weak state. Indian property firms are also seeing an increase in earnings, with Godrej Properties and DLF reporting year-on-year increases of more than 40% in Q4 earnings. Despite the possibility of higher retail food inflation, countries’ favourable government policies and rising income levels are expected to support Indian developers.