Realty index outperforms Sensex on cheaper home loan rates
Seven realty shares rose by 2.71% to 14.19%, on hopes a decision to offer lower interest rate on some home loans will revive housing demand At 13:18 IST, the BSE Realty index was up 5.82% at 5,571.72, outperforming the Sensex, which was up 1.55% at 9,840.10. DLF, Unitech, Indiabulls Real Estate, Omaxe, Sobha Developers, Ansal Properties & Infrastructure, Puravankara Projects were up by 2.71% to 14.19%. Indian state-run banks will offer special rates on some loans to home buyers and small businesses, as part of a government-led initiative to boost economic growth and shore up confidence amid a global liquidity crisis. Public sector banks will offer home loans up to Rs 5 lakh at 8.5% and between Rs 5 lakh to Rs 20 lakh at 9.25%. The new home loan rates, part of a move to stimulate demand in the affordable housing segment, will be effective until 30 June 2009. Currently, loans in that category cost borrowers more than 10%. The banks will take a 10% margin on home lo