Money on the markets

A maturing market amid the mayhem

Shares in real estate firms drop

By Kshitij Anand
November 26, 2010
BSE REALTY INDEX | BSE Sensex | Kshitij Anand

A labourer works at a construction site in the northern Indian city Lucknow February 7, 2006. REUTERS/Pawan Kumar/Files

Shares of real estate developers came under pressure on Thursday following the arrest of top public sector bankers the previous evening on corruption charges.

The CBI on Wednesday arrested five officials from state-run listed companies, including the chief executive of LIC Housing Finance, for taking bribes to facilitate large corporate loans.

The BSE Realty Index closed 5.4 pct down, with DB Realty, HDIL and Unitech dropping 10 pct, 9.7 pct and 6 pct respectively.

The realty sector has been underperforming since the Reserve Bank of India raised rates earlier this month, and the graft scandal has further dampened sentiments.

Do you think it is the right time to invest in this sector?

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