Fourteen realty stocks tumbled 2.74% to 22.48% at 11:17 IST on BSE as the sector is expected to feel the heat of the government's move to phase out the old Rs 500 and Rs 1000 notes.
Indiabulls Real Estate (down 22.48%), Housing Development & Infrastructure (down 21.09%), DLF (down 20.92%), Lancor Holdings (down 15.82%), Oberoi Realty (down 13.64%), Unitech (down 13.18%), Kolte-Patil Developers (down 12.56%), D B Realty (down 12.5%), Brigade Enterprises (down 12.32%), Prestige Estates Projects (down 12.05%), Puravankara Projects (down 9.31%), Sobha (down 8.45%), Godrej Properties (down 2.94%) and Omaxe (down 2.74%) edged lower.
The S&P BSE Realty index tanked 210.65 points or 14.27% at 1,265.14. It underperformed the Sensex which was down 956.49 points or 3.47% at 26,634.65.
The S&P BSE Realty index had underperformed the market over the past one month till 8 November 2016, sliding 6.21% compared with 1.67% fall in the Sensex. The index had also underperformed the market in past one quarter, declining 9.59% as against Sensex's 2.1% fall.
In a historical move that will add record strength in the fight against corruption, black money, money laundering, terrorism and financing of terrorists as well as counterfeit notes, the Government of India (GoI) decided that the five hundred and one thousand rupee notes will no longer be legal tender from midnight of 8 November 2016. The GoI accepted the recommendations of the Reserve Bank of India (RBI) to issue two thousand rupee notes and new notes of five hundred rupees will also be placed in circulation. Notes of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal tender and will remain unaffected by the decision. The Prime Minister said the steps taken by GoI would strengthen the hands of the common citizens in the fight against corruption, black money and counterfeit notes.
Persons holding old notes of five hundred or one thousand rupees can deposit these notes in bank or post offices from 10 November 2016 onwards till 30 December 2016, the Prime Minister announced yesterday, 8 November 2016, evening.
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Analysts expect that a lot of property purchases may get deferred in the short term in the wake of the government's latest measures to curb black money. Reports suggested that luxury real estate and land prices could correct near term, though it may be a positive over the long run.
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