Realty Sector Down 4% On Housing Rate Concerns

The realty index slipped 4.45% on inflationary concerns as realtors feared a rise in housing loan rates last week.As the Bombay Stock Exchange benchmark plummeted to touch nearly nine-month low, the realty sector index suffered a loss of 250.79 points at 5383.81, after touching a low of 5349.80 points.

The downward march of the index was led by realty major DLF and housing financing firm Housing Development Finance Corp. DLF Ltd stocks fell by Rs 21.82 to Rs 456.35 and HDFC by Rs 53.35 at Rs 528.15.

Marketmen said with the rate of inflation touching a 13- year high of 11.05%, bankers and other lenders would be forced to raise interest rate on housing loans which would have a negative impact on real estate sales.

Meanwhile, shares of Akruti City declined nearly 8% to Rs 790.10 and Shobha Developers by Rs 25.75 at Rs 360.95. Also Indiabulls Real estate declined 5.91% to Rs 354.05.

One Comment

  1. Posted July 17, 2008 at 3:17 am | Permalink

    Yes from last 2 months when the house loan rates are hike the price of the Real estate level become down which is to be effective in the current situation.Also the big builders like DLF and Unitech also become at downfall level

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