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Shares of real estate companies were under pressure with the National Stock Exchange (NSE) CNX Infra index touched 52-week low of 163 today.
Housing Development and Infrastructure and DLF were down 5% each at Rs 79.30 and Rs 96.45 respectively. Godrej Properties, Prestige Estates, Sobha and Unitech were down 1%-4% on the NSE.
DLF (Rs 96), Sobha (Rs 332), Unitech (Rs 6.45) and Prestige Estates Projects (Rs 202) have touched their respective 52-week lows in intra-day trade today.
At 03:09 PM, CNX Realty index was down 2.5% as compared to 0.21% fall in the CNX Nifty. In past three months realty index dipped 19% against 1.3% rise in the benchmark index.
According to Aashiesh Agarwaal analyst at Edelweiss Securities, volumes were weak across most markets, including Tier-II and Tier III cities. NCR remains weak and Bangalore continues to slow, while Pune has also witnessed a weak Q1FY16. Mumbai has shown initial signs of volume pick.
“However, we believe Mumbai volumes are expected to gain traction only in H2FY16, as physical markets hit the lean patch of monsoon. Launches in Mumbai have also been slow on account of regulatory uncertainty and due to lack of meetings by the state environment assessment committee for a prolonged period of time,” analyst said in a result preview.
Housing Development and Infrastructure and DLF were down 5% each at Rs 79.30 and Rs 96.45 respectively. Godrej Properties, Prestige Estates, Sobha and Unitech were down 1%-4% on the NSE.
DLF (Rs 96), Sobha (Rs 332), Unitech (Rs 6.45) and Prestige Estates Projects (Rs 202) have touched their respective 52-week lows in intra-day trade today.
At 03:09 PM, CNX Realty index was down 2.5% as compared to 0.21% fall in the CNX Nifty. In past three months realty index dipped 19% against 1.3% rise in the benchmark index.
According to Aashiesh Agarwaal analyst at Edelweiss Securities, volumes were weak across most markets, including Tier-II and Tier III cities. NCR remains weak and Bangalore continues to slow, while Pune has also witnessed a weak Q1FY16. Mumbai has shown initial signs of volume pick.
“However, we believe Mumbai volumes are expected to gain traction only in H2FY16, as physical markets hit the lean patch of monsoon. Launches in Mumbai have also been slow on account of regulatory uncertainty and due to lack of meetings by the state environment assessment committee for a prolonged period of time,” analyst said in a result preview.
