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Below is quote on Real-estate sector update By Mr. Yash Gupta, Equity Research Analyst, Angel One Ltd   

S&P BSE Realty up by another 2.11% at 4085, in last one week up by 26.8% from 3221 to 4085. We have a Buy rating on Sobha Limited and a Neutral rating on Godrej Properties Ltd.

We have seen a one-sided rally in realty stock last week, as of now we expect some consolidation in real-estate stocks. Some of the stocks like Godrej Properties are up by 32% in the last 4 trading sessions, so we expect some correction in the upcoming week.

There is a fundamental shift in the real-estate sector, like consolidation towards top-10 players, higher affordability due to lower housing interest rates, low inventory ratio, and new job creation in the IT industry, etc. The real-estate sector was consolidated for the last decades and now we have seen a breakout in that along with favorable fundamentals. We believe the real-estate story is long term story but there may be some consolidation for the time being. We have a neutral rating on Godrej Properties Ltd and a buy rating on Sobha Limited.

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