DLF and Unitech led a drop in the real estate developers stock, pulling down the Bombay Stock Exchange’s (BSE’s) real estate index to a month’s low On Monday, as concerns on the transparency of these companies’ balance sheet and slowing sales mounted.
The real estate index on the BSE fell 90.73 points, or 4.87 per cent to 1773.36 compared with 296.42, or 3.4 per cent drop of the Sensex, which closed at 9110.05.
The real estate index on the BSE has plunged 28 per cent since January 5 this year compared with 8.52 per cent of the Sensex in the comparative period.
“People are looking at further downturn in the real estate sector in 2009 with at least 25 per cent correction in prices,” said another analyst with a local brokerage. “The secondary market rates are now lower than that being offered by the builder which is affecting sales further.”
Reflecting the concern DLF led the decline in the real estate stock. DLF fell Rs 11.6, or 5.4 per cent to Rs 204.76 at the close of the trading on the BSE. Unitech dropped Rs 1.85, or 5.1 per cent, to Rs 34.15 while Omaxe Developers declined Rs 2.9, or 5.2 per cent, to 53.05.