Equity Alert: Realty shares down; may decline more as outlook weak
MUMBAI--1:30PM--Shares of realty companies extended losses on
worries over inadequate funding for their projects and slowdown in
demand,
dealers said.
The sentiment dampened after the mortgage crisis in the U.S.
worsened
further with the collapse of more financial majors, they said.
Index major Unitech declined over 4% at 138 rupees, while DLF shed
nearly
4% at 417 rupees.
Among mid-caps, Indiabulls Real Estate slumped nearly 6% at 226
rupees.
"Among rate-sensitive sectors, real estate certainly looks weak as
the
they will face difficulty in raising funds due to high interest rates
and
also because foreign firms are not much willing to invest in the
sector,"
said an analyst at sharekhan.com.
The sector is witnessing slowdown in demand and there is scope for
further price correction of 15-20% in the near-term, he said.
"It's better not to look at this sector until inflation comes down
to 5-7%,
which is not possible in the near-term. The stock prices are in for
further
downfall and will hit new-year lows if the broad market trend
continues like
this," said the head of institutional dealing at a domestic brokerage
house.
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