NIFTY REALTY INDEX FALLS 4% AS RISING YIELDS

The Nifty Realty index fell more than 4% on September 11, hitting its lowest level in over two months as a broad-based selloff across Indian equities weighed heavily on real estate stocks. Among the biggest losers, Godrej Properties, Lodha Developers and Prestige Estates declined 6.2%, 6% and 4.6%, respectively. Nifty Realty index was trading 4.36% lower. Other major constituents also remained under pressure, with Oberoi Realty falling 4.24% and DLF declining 3.83%. The selloff in real estate stocks came against a backdrop of rising global inflation and bond yields. US producer-price inflation data released on Thursday pointed to renewed price pressures, partly driven by higher energy costs, raising concerns about the Federal Reserve’s interest-rate outlook. US Treasuries also faced selling pressure after the US Treasury’s latest buyback operation attracted less demand than investors had expected. The move pushed the 10-year US Treasury yield close to 5%. Surging crude oil prices have further intensified inflation concerns and driven global bond yields higher, putting additional pressure on equities. Indian government bonds also declined sharply in early trade on Friday, with the benchmark 10-year yield crossing 7%, its highest level in more than three months. Higher bond yields can weigh on real estate stocks as borrowing costs remain a key factor for developers and homebuyers. Rising oil prices could also add to inflationary pressures and complicate the outlook for interest-rate cuts.