Indiabulls leads ‘A’ group

Real estate developer Indiabulls Real Estate soared 27.65% to Rs 136.90, as realty stocks extended gains on hopes cut in lending rates will spur demand for residential properties. The scrip topped gainers in BSE’s ‘A’ group shares.

The Reserve Bank of India, on 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.

E-learning solutions provider Educomp Solutions spurted 23.97% to Rs 2,066.40. It was the second biggest gainer in A group. The stock extended gains for the second session in a row, on acquiring 51% stake in Takshila Management Services, which specializes in setting up schools in cities across India. The acquisition is aimed at Educomp’s plan to set up twenty-five schools over the next two years.

Infrastructure Development Finance Company, which finances infrastructure projects, galloped 20.82% to Rs 62.10. It was the third biggest gainer in A group.

One Comment

  1. Posted October 23, 2008 at 2:43 am | Permalink

    The crisis in the international economic scene is bound to have its repercussions in the State economy as well. The NRIs, the export and import-based companies and the real estate sector may suffer if the global economic meltdown continues. The NRIs will have to share the burden of measures being implemented by their host countries to ward off the crisis. The result will be a slowdown in the remittances from abroad which is likely to affect a spectrum of activities in the State. The boom in the real estate sector was driven by the money supply in the market.For more view-

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