Stock experts opined that real estate shares face severe pressure to sell off. This was all the more infuriated by BSE closing its real estate index at 1,822.14 after a 3% drop.
Stock market witnessed severe pressure for real estate shares to sell off. 7.8 % inflation of September had hurt the real estate investors’ sentiment. This was all the more increased by the profit-booking. The 7.8 % inflation of September was the ten- month highest in the year.
The real estate shares faced the worst fall. All other sectors performed better than real estate shares. The shares of all real estate majors like DLF, Unitech etc. faced severe setback. DLF shares were priced Rs.208 after declining by 4.3%. Shares of Unitech were sold at Rs.25.65 with a 4.8 % decline.
With a 6.8% drop Anant Raj Industries became the biggest loser. With a decline of 5.7 % HDIL stood second worst after Anant Raj Industries.
There exists no sign of soon recovery and so most of the real estate shareholders are cutting off their shares. According to KR Choksey Securities’ MD Deven Choksey, only lowered interest rates can recover the real estate shares. He added that besides the lowered interest rates the economy also should do well.
In September BSE real estate index had beaten Sensex with its 22 % growth. Meanwhile Sensex could achieve a mere 7.6% of growth in the same period.
Following the recent trends the stock markets experience more demand for technology or defensive shares. Stock investors show a negative sentiment towards the real estate shares. Banking sector and other capital goods sectors are also treated with negative sentiment.
An independent stock market analyst S P Tulsian opined that the real estate shares would witness a 5% growth from the current levels. He added that a few individual- stocks would fall deeper.
During this setback to the real estate shares DB Realty remained successful and exceptional. DB shares experienced a 5% upward growth. Each share was priced at Rs.103.65. Rakesh Jhunjhunwala’s Rare Enterprises buying 1.25 million DB shares is said to be the reason for this growth. One thing is sure that the real estate shares would not be as profitable as it was in the past.
