4 hrs ago
Lodha Developers Leads Realty Rally on RBI Rate Hike Bets
Real estate company shares rose on Friday, led by Lodha Developers.
Its shares gained more than 4%.
Other property companies also increased in value.
Investors were thinking about whether India’s central bank might raise interest rates.
The US Federal Reserve had just raised its own interest rate by 25 basis points.
Higher interest rates can make home loans and construction borrowing more expensive.
That can make some people less willing to buy homes.
Some analysts expect the Reserve Bank of India to raise rates in October and December.
Other analysts think the RBI may wait and watch the economy first.
Lodha Developers rose more than 4% to ₹1,148.50 on the BSE, becoming the top gainer in the index.
Prestige Estates, DLF, Mahindra Lifespaces, Godrej Properties, Phoenix Mills and Sobha each gained more than 1%.
The Nifty Realty index climbed 2%, outperforming the benchmark Nifty’s 0.1% gain.
The rally followed the US Federal Reserve’s 25-basis-point rate increase and expectations of possible Reserve Bank of India hikes.
Analysts differ on the RBI’s next move, with some expecting October and December increases while others anticipate a near-term pause.
- Who
- Lodha Developers led gains among realty stocks, while investors and analysts assessed possible Reserve Bank of India policy action.
- What
- Indian realty stocks rallied, with Lodha Developers gaining more than 4% and the Nifty Realty index rising 2%.
- Where
- On Indian stock exchanges, including the BSE.
- When
- Friday, September 18; the article also discusses possible RBI decisions in October and December.
- Why
- Investors responded to the US Federal Reserve’s rate increase and expectations that the RBI could raise interest rates, affecting borrowing costs and housing demand.
Expect RBI Rate Hikes
Expect Near-Term RBI Pause
Timing of monetary tightening
Expect RBI Rate Hikes
Some analysts, including Axis Capital, expect the Reserve Bank of India to raise rates in October and December, with external pressures strengthening the case for tightening.
Expect Near-Term RBI Pause
Other analysts expect the RBI to remain cautious and maintain a pause in the near term.
Impact on real estate
Expect RBI Rate Hikes
Rate-hike expectations can attract buying in stocks if investors see policy tightening as manageable or already reflected in prices.
Expect Near-Term RBI Pause
Higher rates could increase home-loan and developer financing costs, pressure project economics and margins, and make buyers more cautious.
Key facts
- Lodha Developers price
- ₹1,148.50 per share on the BSE
- Lodha Developers daily move
- More than 4% higher
- Nifty Realty performance
- Up 2%
- Benchmark Nifty performance
- Up 0.1%
- Federal Reserve decision
- Rates raised by 25 basis points to a 3.75%-4% target range
- Lodha 52-week high
- ₹1,344, reached in July 2026
- Lodha five-year return
- Up 127%
Quotes
Axis Capital
Financial research and investment banking firm commenting on expected RBI policy moves
“We expect the RBI to deliver rate hikes in October and December. The Fed's latest move has complicated the policy calculus, bringing a third hike firmly into play, although when it materializes will depend on incoming inflation and external-sector dynamics.”
livemint.com
Sources
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