Realty stocks plunge on rate hike worries

PTI Mumbai | Updated on January 10, 2011 Published on January 10, 2011

Rate hike fears hit realty stocks on the BSE on Monday. - Nagara Gopal   -  Business Line

Real estate companies suffered widespread losses on the BSE on Monday dragging down the sectoral index by 3.55 per cent on sell-off by funds on fears of a rate hike by RBI to rein in inflation.

The realty index of the Bombay Stock Exchange suffered the most among sectoral indices registering a fall of 89.49 points, or 3.55 per cent, to 2,570.94 after touching an intra-day low of 2,562.13. DLF Ltd, HDIL, Unitech Ltd, and DB Realty were among the major losers.

Meanwhile, the benchmark Sensex tumbled by 467.69 points, or 2.38 per cent, the second biggest drop this year, to close at 19,224.12.

Analysts said trading sentiment, particularly in rate sensitive realty sector stocks, remained distinctly bearish on fears of a hike in key interest rates by the Reserve Bank to curb rising inflation.

Selling pressure gathered momentum on fears that a hike in interest rate would create hurdles for development and construction and adversely affect demand for houses.

Stocks of DLF Ltd, lost 3.33 per cent to Rs 259.80 after touching an intra-day low of Rs 258.50, while Unitech Ltd fell by 3.42 per cent to Rs 59.30.

Other weak counters in the segment were, HDIL fell by 7.81 per cent to Rs 169.30, Sobha Developers by 4.60 per cent to Rs 296.90, Parsvanath Developers by 3.31 per cent to Rs 55.50, Ananat Raj Industries by 0.25 per cent to Rs 100, Orbit Corporation by 4.30 per cent to Rs 71.20, DB Realty by 1.26 per cent to Rs 195.35 and Indiabull Real Estate by 3.36 per cent to Rs 120.80.

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Published on January 10, 2011
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