 "Real estate shares crack; Realty index plunge 13%")
Shares of real estate shares under severe pressure falling by up to 20% on the bourses after Prime Minister Narendra Modi on Tuesday announced that Rs 500 and Rs 1,000 currency notes would no longer be printed, as part of his government's fight against black money.
Delta Corp, DLF, Housing Development & Infrastructure (HDIL), Indiabulls Real Estate, Unitech, Oberoi Realty, Sunteck Realty and DB Realty were among few real estate stocks, down between 12% 20% on the BSE.
At 10:15 am, the Nifty Realty and S&P BSE Realty index were down 14% and 13%, respectively; as compared to 3% decline each in Nifty50 and S&P BSE Sensex.
Delta Corp, DLF, Housing Development & Infrastructure (HDIL), Indiabulls Real Estate, Unitech, Oberoi Realty, Sunteck Realty and DB Realty were among few real estate stocks, down between 12% 20% on the BSE.
At 10:15 am, the Nifty Realty and S&P BSE Realty index were down 14% and 13%, respectively; as compared to 3% decline each in Nifty50 and S&P BSE Sensex.
“In real estate, we believe most of the cash is used in land transactions (by entities or individuals) and sellers potentially hold un-explainable sums. Post the Income Declaration Scheme 2016, and the recent government doctrine, we believe it could be difficult for them to adjust such huge sums of cash,” analyst at Kotak Institutional Equities said in a note.
“We believe NCR and MMR markets will be affected more versus those like Bangalore, Pune, Chennai and Hyderabad as the former have a higher proportion of investors. Transactions in tier-2 and small towns will be affected in the near-term the most, as we believe the ‘use of cash’ in transactions is higher in such markets,” the report added.
“We believe NCR and MMR markets will be affected more versus those like Bangalore, Pune, Chennai and Hyderabad as the former have a higher proportion of investors. Transactions in tier-2 and small towns will be affected in the near-term the most, as we believe the ‘use of cash’ in transactions is higher in such markets,” the report added.
| COMPANY | LATEST | PREV CLOSE | LOSS(%) |
| DELTA CORP | 129.90 | 162.35 | -19.99 |
| DLF | 115.40 | 143.65 | -19.67 |
| H D I L | 60.95 | 74.45 | -18.13 |
| INDBULL.REALEST. | 66.60 | 80.50 | -17.27 |
| ELDECO HOUSING | 498.90 | 599.45 | -16.77 |
| VIPUL LTD | 74.00 | 88.10 | -16.00 |
| PENINSULA LAND | 16.00 | 19.00 | -15.79 |
| SUNTECK REALTY | 233.00 | 275.50 | -15.43 |
| ANANT RAJ | 42.50 | 50.10 | -15.17 |
| ARIH.FOUND.HSG. | 52.00 | 61.25 | -15.10 |
| AJMERA REALTY | 127.00 | 147.95 | -14.16 |
| J KUMAR INFRA | 172.20 | 199.05 | -13.49 |
| UNITECH | 4.93 | 5.69 | -13.36 |
| LANCOR HOLDINGS | 25.75 | 29.70 | -13.30 |
| PRESTIGE ESTATES | 159.00 | 183.00 | -13.11 |
| HUBTOWN | 87.10 | 99.65 | -12.59 |
| D B REALTY | 40.10 | 45.60 | -12.06 |
| NITESH ESTATES | 11.30 | 12.83 | -11.93 |
| KOLTE PATIL DEV. | 108.00 | 122.25 | -11.66 |
| ANSAL PROPERTIES | 16.60 | 18.75 | -11.47 |
