DLF IPO Brings Heyday For Realty Stocks

May 9, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Since, the real estate giant DLF has got the nod for its mega initial public offering (IPOs), there has been a rush for real estate stocks on Monday.

The real estate stocks of famous construction companies including Unitech, Indiabulls Real Estate, Sobha Developers, Ansal Properties, Akruti Nirman, and Parsvnath Developers shot up speedily. However, the surge didn’t continue for the whole day and the prices came down in the later half of the day.

Unitech emerged as the only gainer who ended by 4.74 per cent or Rs 20.05 to Rs 443.45 while Indiabulls Real Estate slipped down by 3.84 per cent to Rs 351.40. Parsvnath Developers stocks traded down 1.19 per cent to Rs 308 and the stocks of Sobha Developers were down by 1.12 per cent to Rs 854.85.

Experts see the recent drop in prices bringing great investment prospects for real estate investors. The investments made in commercial sector over the past few months imply bright future for Indian real estate. However, residential sector may take sometime to normalize.

The fact that the Reserve Bank of India (RBI) has brought a significant drop in the risk weightage on home loans of less than Rs 20 lakh from 75 per cent to 50 per cent is also another positive factor, add experts.

Profit booking pulled the stocks later in the day whereas they were trading excellently on heavy buying from investors. Other counters are also seen to experience the same situation.

Shobha Developers was trading at about 3 per cent high from Monday at Rs 889. Contrary to this, Ansal Properties was trading at Rs 294.35, up by 3.71 per cent from previous close, in early trading on Tuesday.

News Published Under:   Banking and Finance |

Comments