Led by Unitech, realty stocks witnessed massive selling pressure today, falling sharply by up to 52 per cent, a day after the RBI hinted that there may not be any more interest rate cut in the near-term.
Shares of Unitech nosedived 51.63 per cent to Rs 6.50 — its 52-week low on the BSE.
The stock also faced massive selling pressure amid reports of company defaulting on loans.
Following the sharp losses in these scrips, the BSE realty index tumbled 6.54 per cent to 1,404.32 points.
EMIs on home and auto loans are expected to come down with SBI and other banks cutting lending rates after RBI had yesterday slashed policy rate by 0.25 per cent.
Reserve Bank Governor Raghuram Rajan, however, cautioned that uncertain monsoon may prevent future rate cuts.
The central bank in its second bi-monthly monetary policy has used subdued inflationary condition to “front load” the repo rate cut to 7.25 per cent to spur investment and growth.
Meanwhile, the benchmark BSE Sensex was trading with a sharp loss of 413.37 points at 26,769.98.