Money on the markets

A maturing market amid the mayhem

Realty index dives

By Kshitij Anand
October 27, 2009
BSE REALTY INDEX | BSE Sensex | Stocks | Unitech

The BSE Realty Index slid nearly 8 percent to a two-month low on Tuesday after the Reserve Bank of India (RBI) withdraws some liquidity measures.

The BSE Realty Index ended 6.2 pct down, with the main losers being Puravankara (down 9.9 percent), Omaxe (down 9.6 percent), HDIL (down 8.6 percent) and Unitech (down 7.6 percent).INDIA-ECONOMY/

“The sector is just recovering and this will definitely affect developers,” Sarang Wadhawan, managing director, Housing Development & Infra, said.

The RBI, in its quarterly policy review on Tuesday, increased provisioning for commercial real estate loans to 1 percent from 0.4 percent for standard assets, and also raised the statutory liquidity ratio by 1 percent.

The realty index has gained over 70 percent so far this year.

Do you think realty stocks will fall further on the RBI’s move?

«
»

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •