Shares of DLF Ltd surged to its day's high

DLF Ltd., India's top real estate company, surged to its day's high on Wednesday after it announced a project-specific joint venture with an overseas sovereign fund.

GIC, Singapore's sovereign wealth fund, will invest 1,990 crore rupees into a joint venture overlooking DLF's two projects in Central Delhi, DLF said in a statement to the exchanges.

As a consequence, DLF jumped 5 rupees, or 4.7 percent, to 111.40 rupees on the National Stock Exchange with 1.04 crore shares traded compared with a 5-day average of 1.46 crore shares. Open Interest rose 4.8 percent over Tuesday, indicating a modest build up of long positions.

DLF's market capitalisation fell 40 percent in the past one year to 19,200 crore rupees as investors stayed away from a sector exhibiting falling prices and slipping demand. The stock is trading at 0.7 times its book value of 154 rupees.

Image credit: Indiatimes