Realty stocks suffer big blow; down up to 17.5%

Realty stocks ended up to 17.5 per cent lower today with DLF, HDIL and Unitech taking a big hit following government's scrapping high denomination currency notes to clamp down on the black money menace.
Shares of DLF crashed 17.47 per cent, HDIL slumped 16.66 per cent and Unitech tanked 8.08 per cent on BSE.
The scrip of Sobha fell 4.94 per cent, Godrej Properties - 2.52 per cent and Prestige Estates Projects - 0.79 per cent.
Led by steep losses in these scrips, the BSE realty index dropped 10.23 per cent to end the day at 1,324.75.
"Real estate sector is likely to witness pressure, on expectations of a slowdown in sales. With a squeeze on cash availability, the sector may witness lower sales which, in turn, might lead to lower prices," said Kalmesh Rao, CEO, Kotak Securities.

"Volumes may get impacted as potential buyers postpone purchases on hopes of reducing prices. Large players who do not have cash dealings may feel limited impact," he said.
In a major crackdown on black money, Prime Minister Narendra Modi on Tuesday evening announced that high denomination notes of Rs 500 and Rs 1000 would no longer be legal tender.
According to experts, demonetisation of Rs 1,000 and Rs 500 notes is likely to hit unorganised builders and secondary (resale) property market.