The Nifty Realty index tanked over 34 points or 4.8 per cent to the day's low at 662.85
Analysts see the sharp correction in stock prices and dislocation in parts of the market as an opportunity for investors to review their portfolios and make appropriate changes.
Sobha, Anant Raj, Prestige Estates Projects, Oberoi Realty, Signature Global and Lodha Developers were down in the range of 4 per cent to 6 per cent on the NSE in intra-day trade on Monday.
Concerns over rising inflation stemming from potential energy supply disruptions and rationing prompted investors to book profits, while FII outflows added to the market pressure, said Geojit.
Mazagon Dock, Concor, IRCTC, DLF and SRF can bounce back from oversold levels owing to a positive divergence on the RSI indicator, explains Muthuselvaraj, technical analyst at Mirae Asset ShareKhan.
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In the past one month, the realty index has tanked 10 per cent, as against 6 per cent fall in the BSE Sensex.
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At 10:45 AM; the Nifty PSU Bank, Nifty Realty and Nifty Auto index were down in the range of 0.67 per cent and 2 per cent, as compared to 0.60 per cent decline in the benchmark Nifty 50.
Realty major DLF Ltd is yet to recognise over Rs 55,000 crore revenue in its financial accounts from the total sales bookings done till December quarter of this fiscal. In its latest investors presentation, DLF Ltd said that the company has sold properties, primarily housing worth Rs 79,885 crore across its existing projects. Till December quarter of this fiscal, the company has recognised revenue of Rs 24,460 crore. The balance revenue to be recognised from sales booked stood at Rs 55,425 crore, the presentation said. DLF is developing residential projects mainly in Delhi-NCR, Mumbai, Tri-city (Chandigarh). In the real estate sector, the developers take advances from customers against sales booked. The revenue gets recognised after the completion of construction of projects or on the basis of percentage of completion method. DLF, the country's largest realty firm in terms of market capitalisation, reported a 16 per cent decline in sales bookings to Rs 16,176 crore in the first
Developer says Q3 sales dropped due to Dahlias pause, no new launches
Realty major states gross zero debt on high net cash position
DLF said that its new sales booking for the quarter stood at ₹419 crore, led by the healthy monetisation of launched inventory
Nifty Realty index correction: The fall in real estate stocks comes after two years of rally that saw the Nifty Realty index climb 34.39 per cent in 2024 and 81.34 per cent in 2023
In the past two weeks, the BSE Realty index has slipped 10 per cent, as against a 2.5 per cent decline in the BSE Sensex.
Real-estate stocks in focus: However, in the past six months, Nifty Realty index has underperformed the market by falling 7.4 per cent, as against 2.1 per cent rise in the Nifty 50.
Nomura highlights that developers are on track for a third consecutive quarter of steady sales momentum, driven largely by sustained interest in branded residential offerings.
In the past one month, the realty index has tanked 8 per cent, as against 2 per cent rise in the Nifty 50.
At 10:25 AM; Nifty Realty and Nifty PSU Bank index were up 1 per cent each, while, Nifty Auto, Nifty Bank and Nifty Financial Services index up in the range of 0.30 per cent to 0.60 per cent.