Markets

Real estate stocks take a battering

Our Bureau Mumbai | Updated on November 10, 2017

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Realty stocks took a hit on Friday on news of CBI raids on real estate companies and concerns regarding inflation. The BSE Realty index was the worst performing sectoral index on Friday. It shed 3.37 per cent, with 11 scrips declining and only four advancing.

On Friday it was reported that investigating agencies were probing transfer of Rs 214 crore from DB Realty's account to Kalaignar TV; this apparently came to light during investigations into the allocation of 2G spectrum. Shares of DB Realty plunged to an all time low on Friday. The scrip closed down 10.4 per cent at Rs 139.85.

DB Realty's spokesperson in a statement denied that the company had made “any loan to or investment in Kalaignar TV directly or indirectly. DB Realty has no business association with Cineyug or Kalaignar TV.” He also denied arrest of the company's directors.

Unitech tumbled 7.11 per cent, DLF shed 2.77 per cent, HDIL 1.47 per cent, Indiabulls Realty 4.5 per cent and Orbit 3.38 per cent.

On the inflation front, the Prime Minister expressing his concern on the matter intensified fears of a further increase in inflation. This also had its impact on realty stocks, as they are an interest rate sensitive sector, said Mr Abhinav Angirish, Managing Director, Abchlor Investment Advisors.

Mr Alex Mathew, Head of Research at Geojit BNP Paribas Financial Services, said that there was also some amount of profit booking seen in the realty scrips as they had moved up in the last two days.

The BSE Realty index has risen more than seven per cent in the last two days, while the Sensex only rose by 2.3 per cent in the same period.

Published on February 04, 2011

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