Sobha, DLF, other real estate shares rise up to 6% on optimism over Fed rate cut

Shares of real estate firms rallied up to 6 percent in Wednesday’s trade amid optimism that the US Federal Reserve may go for further rate cuts later this year.

The Nifty Realty index rose over 3 percent, recovering from the previous day’s losses, as investors cheered comments from Fed Chair Jerome Powell indicating possible monetary easing.

"Fed Chair Jerome Powell warned that the sharp slowdown in hiring is increasingly threatening the US economy, hinting at the possibility of two more rate cuts this year," Jigar Trivedi, Senior Research Analyst at Reliance Securities told PTI.

Expectations of lower US interest rates tend to improve global liquidity and risk sentiment, often leading to increased foreign inflows into emerging markets like India. There are also expectations that India's