Realty stocks fall amid global crisis

September 16, 2008	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

Realty sector stocks fell by 3.93 per cent, with the weakening of the global financial crisis as most of the foreign institutional investors had invested heavily in this segment. Analysts said the drop was due to concerns that the US investment banking major Lehman Brothers which had filed for bankruptcy, would sell of its investments in the firm. Lehman Brothers Asia holds nearly 2 per cent stake in the company.

The BSE Realty Index lost over Rs 4,000 crore of the total market capitalisation of the 14 realty firms during the day. “Most of the foreign institutional investors were more interested in the realty and developmental projects in the country and thus, the financial crisis in US has impacted the domestic realty stocks, making them fall sharply, since the morning,” SMC Global Vice President Rajesh Jain said.

Anant Raj Industries was the biggest loser in this space on Tuesday, down by 15 per cent. Its scrip ended at Rs 103.45 on the Bombay Stock Exchange. Country’s largest realty firm, DLF’s shares fell to an intra-day low of Rs 400.05 in the morning trade, a drop of over 7 per cent over yesterday’s close of Rs 432.60 on the BSE. The scrip closed at Rs 422.60 down 2.31 per cent. Unitech settled at Rs 140.05, down 2.40 per cent. Other major losers include Parsvnath, Indiabulls Real Estate and Housing Development and Infrastructure which closed with a decline of 3.27 per cent, 6.49 per cent and 4.97 per cent, respectively.

News Published Under:   Real Estate India |

Comments