Realty companies under sell-off pressure; DLF skids 4%

Realty companies under sell-off pressure; DLF skids 4%
PTI
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First Published: Thu, May 14 2009. 11 17 AM IST
Updated: Thu, May 14 2009. 11 17 AM IST
Mumbai: Shares of realty companies suffered losses on the Bombay Stock Exchange (BSE), with the country’s largest real estate firm, DLF, plunging by 4% in the morning trade.
Shares of DLF fell by 4.43% to touch a low of Rs222.20 on the BSE after its promoters yesterday raised Rs3,860 crore by offloading 9.9% stake in the company.
On the volume front, a good 10.30 lakh shares changed hands in the first few minutes of trade.
The 14 share BSE realty index opened on a weak note and declined further to a low of 2,212.09 points, down 3.63% over the previous close.
“DLF is reeling under cash crunch. Investors have turned cautious. The market took the promoters’ decision positively in the beginning, but they resorted to profit selling later,” Ashika Stock Brokers Research head Paras Bothra said.
Indiabulls Real Estate plunged 5.44% to Rs137.2 and Unitech dropped 5.07% to Rs46.85 on the BSE.
“Nervousness in the market is likely to continue. Weakness in the global indices could make the investors jittery from taking any fresh position,” domestic brokerage firm Sharekhan said in its research note.
Other major sectoral losers include Sobha Developers (2.23%), HDIL (1.58%) and Omaxe (2.28%). The Sensex today tanked over 324 points to 11,695.52 in opening trade on increased selling by funds amid political uncertainty.
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First Published: Thu, May 14 2009. 11 17 AM IST