On Wednesday, stocks of debt laden companies cracked in trade as rate cut hopes dimmed post the Reserve Bank of India’s (RBI’s) review of the monetary policy a day amid lowering of monsoon forecast by the Indian Metrological Department (IMD).
Unitech slipped around 45% in intra-day deals to hit its 52-week low level on rumours of a payment default, while the CNX Realty, a gauge of real estate companies, lost close to 10% in intra-day deals. The company, however, denied that it was facing a payment crunch.
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“Rumours are being spread by certain segments of the market to profit from trading pertaining to Unitech defaulting on repayments to certain lenders, which are false and misleading. Unitech has in fact significantly ramped up its execution capabilities and expects to increase deliveries considerably this year. These deliveries of existing bookings will add to cash flows and profitability and also help in reducing debt. The company’s debt has been stable and is at manageable levels and its debt equity ratio is one of the lowest in the industry at sub 0.6,”” the company spokesperson said.
On Thursday, Unitech bounced back over 3% in morning trade to Rs 8.9 levels around 10am. By comparision, CNX Realty index was trading around 2% lower and the CNX Nifty was trading 0.2% lower at 8,119 levels.
Among other real estate counters, HDIL lost 3.2% to Rs 94 levels. Delta Corp, Oberoi Realty, Sobha, DLF, Godrej Properties and Indiabulls Real Estate slipped 1% - 2.6%.