​Shares of Indiabulls Real Estate are soaring. Know why

Shares of Indiabulls Real Estate Ltd, a mid-sized construction company, were the top gainers in the derivatives market after the company reported a sharp jump in quarterly profit on the back of a rise in sales of flats.

Indiabulls Real Estate said its first quarter Net Profit rose 133 percent to 91 crore rupees compared with 39 crore rupees in the same quarter a year ago. Sales during April-June gained 21 percent to 738 crore rupees from 610 crore rupees in the year ago period.

Indiabulls Real Estate rose 4.8 percent, or 2.90 rupees, to 65.10 rupees, the highest since April 17, on the National Stock Exchange, where 73 lakh shares were traded in the first hour of trading compared with the 5-day average of 1.07 crores.

Indiabulls Real Estate's market capitalisation has fallen 17 percent in the past one year to 2,853 crore rupees as investors stayed away from the sector on the back of a fall in demand of real estate in major cities.

Image credit: Indiatimes