By Aditya Raghunath
Investing.com -- On November 12, 2020, Rakesh Jhunjhunwala’s RARE Enterprises bought 50 lakh shares of Indiabulls (NS: INBF ) Real Estate according to data filed with the NSE. The stock closed at Rs 55.1 that day. Assuming the stock was bought at the closing price, it would have cost Rs 27.55 crore.
Today, the stock is trading at Rs 85.25, that’s an upside of over 54% or a profit of Rs 15.07 crore in less than two months. The real estate sector has seen a massive uptick in the last two months. Maharashtra's government cut its stamp duty in September and has now cut premiums by 50% in the state.
Sales in Mumbai, India’s most expensive real estate market, for the months of November and December went through the roof. November saw sales of 9,301 units, an increase of 67% from November 2019. December saw a ‘historic high’ or 19,220 units according to property consultants Knight Frank.
Real estate stocks are trading higher today after the Maharashtra government cut premiums by 50% until December 31, 2021. If these reductions are passed to homebuyers, the rally in real estate could continue as buyers continue to buy homes. Prices of homes will come down, new projects might be launched and stuck projects could be revived.
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