Mumbai: The real estate sector is facing the brunt of the market meltdown on 9 June with realty major DLF suffering the most, falling 6.43% to its lifetime low in the early morning trade.
DLF opened on a weak note at Rs500.05 and declined further to hit an intra-day low of Rs488.60, a 6.43% fall from its previous close.
The realty major was quoted at Rs490, down 5.76% at 10.41 am and over 3.54 lakh shares exchanged hands on the BSE.
“The decline is because of higher inflation, that can only be checked by higher interest rate and this will eventually hurt real estate and financial sector the most,” SMC Global Vice President Rajesh Jain said.
The realty index of the BSE hit an intra-day low of 5,785.45 points and later quoted at 5,787.37 points at 10.45 am.
“Realty sector is under-performing for the last five to six months and this scenario is likely to continue because of weakening global cues and fears of a further rise in inflation,” Jain added.
The other major losers in morning deals were Jaiprakash Associates, Reliance Infrastructure, Housing Development and Finance Corporation and Tata Motors .
The Bombay Stock Exchange benchmark index Sensex slipped 513.20 points to 15,058.98 points in the first five minutes of trade on 9 June, triggered by weak global markets.
The wide-based National Stock Exchange index’s Nifty dipped below 4,500 points level by losing 141.15 points to 4,476.65.