Money on the markets

A maturing market amid the mayhem

Realty stocks slump

November 3, 2009

The BSE Realty Index lost 9.8 percent on Tuesday in a broader market that slipped nearly 500 points on the first trading day of November.

Realty majors Unitech and DLF ended the day with losses of over 9 percent each. DLF shares have dropped more than 30 percent since October.

Indiabulls Real Estate and Sobha Developers fell 16 percent and 10.5 percent respectively.

The sector took a hit after the Reserve Bank of India raised bank provisioning requirements for commercial real estate loans in its quarterly policy review on Oct. 27.

The BSE Realty Index has dropped 23 percent since October. Would you take advantage of this fall and invest in this sector?

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