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With no significant reduction in interest rates in sight,realty stocks have come off their 52-week highs.
What has further added to the pressure on these stocks is the overall market pessimism that has seen the BSE Sensex shedding about 450 points in two days.
The biggest losers are two of the strongest players in the realty space - Godrej Properties and Sobha Developers.
Many of the realty heavyweights have lost significant value in a short span of about a month or so, barring Godrej Properties that has taken a little longer to lose value from its 52-week high.
Godrej Properties was down by Rs 7.95 at Rs 540. The stock was about 8 per cent short of away from its 52-week low of Rs 500. The stock has been under some pressure after it touched a 52-week high of Rs 688 on December 7, 2012.
Sobha Developers was the biggest loser in terms of value shedding Rs 16.05 to Rs 355.25. It has come off from its 52-week high of Rs 498.30 that it touched barely a month ago-on March 12.
DLF was down by Rs 9.45 at Rs 235.40. It has shed about 15 per cent from its yearly high of Rs 289.25 it hit on March 12. The stock has been witnessing a downward trend even as it is trying to cut its debt burden by selling some assets.
Oberoi Realty was another major player to lose about 20 per cent in a very short span of time. The stock has hit its yearly high of Rs 328 on January 21.
It was only last month that two Mumbai-based developers came under the scanner after it was reported that rating agencies have downgraded the papers for alleged default/delay in servicing their debts.
Hubtown Ltd and Housing Development and Infrastructure Ltd (HDIL), which were mentioned in the media as having been downgraded by rating agencies, slipped to their 52-week lows and these stocks are still to shake off the impact of the report.
The BSE Sensex was down by about 215 points today and after yesterday’s loss of 239 points.
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