Indiabulls Real Estate (up 4.94%), Sobha (up 3.67%), Anant Raj (up 2.08%), Prestige Estates Projects (up 2.03%), Oberoi Realty (up 1.55%), Godrej Properties (up 1.23%), DLF (up 1.1%), Brigade Enterprises (up 1%) and The Phoenix Mills (up 0.39%) surged.

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the establishment of a 'special window' fund to provide priority debt financing for the completion of stalled housing projects that are in the affordable and middle-income housing sector.

For the purposes of the fund, the government shall act as the sponsor and the total commitment to be infused by the government would be upto Rs 10,000 crore.

The fund will be set up as a Category-11 AIF (alternate investment fund) debt fund registered with Sebi and would be professionally run. For the first AIF under the special window, it is proposed that SBICAP Ventures shall be engaged to be the investment manager.

This fund would in turn would provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers.

Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.