Real estate majors' stocks crack under political pressure
DLF, Unitech shares drop 8% each
May 02, 2014
Source : Business Standard

 

DELHI: Shares of New Delhi-based realty majors DLF and Unitech came under heavy selling pressure on Wednesday, falling eight per cent each, the most in three months.

Market players said the sell-off could have been sparked by apprehensions of a Bharatiya Janata Party (BJP) -led alliance likely forming the next government.

While Robert Vadra, son-in-law of Congress President Sonia Gandhi, has been under a lens for his alleged land deals with DLF, Unitech has faced action from the Central Bureau of Investigation during the second term of the United Progressive Alliance government. Also, Unitech Managing Director Sanjay Chandra was in judicial custody over alleged arbitrary spectrum allocation to his company's telecom arm.

"It's logical to believe a BJP regime will be tough on Vadra, as well as DLF," said an analyst who did not wish to be named.

Unitech has exited its telecom business and is now focusing on real estate. Analysts say, uncertainty over which party might form a government and what its stand could be on the telecom scam probe might have caused a decline in the Unitech stock price.

The DLF shares ended 8.66 per cent lower at Rs 140.25, while Unitech slipped 8.32 per cent to Rs 15.86. The two stocks pulled BSE's realty index five per cent down on Wednesday, even as the benchmark Sensex recouped most of its losses to end 0.2 per cent lower than the previous close.

Both DLF and Unitech refused to comment. BJP leaders, however, have earlier said on record that they do not believe in being vindictive.

Analysts said profit-taking after a sharp run up in recent months could also have led to a fall. In the past two months, realty stocks have outperformed the broader market by a wide margin. Since March, the BSE realty index rose 22.5 per cent until Tuesday, against a 6.4 per cent rise in the Sensex.

"Going ahead, one needs to be cautious. A rational view suggests one should take an investment call in these stocks after election results, rather than taking a plunge now. The markets are already factoring in a positive poll outcome to some extent," said Vaibhav Sanghavi, director (equities), Ambit Investment Advisors.

Latest Realty News

Take the plunge this Akshay Tritiya
May 01, 2014
MUMBAI: Everybody wants to buy a property during the auspicious festive day of Akshay Tritiya but identifying the right property and right spot is a cumbersome job.
Corporators renew demand to save illegal Campa Cola buildings
May 01, 2014
MUMBAI: As a month remains for the extension given to Campa Cola residents to end, corporators have restarted efforts to save the unauthorized structures in the Worli colony.
Six documents to check when booking a flat
May 01, 2014
MUMBAI: When comparing properties we usually look at location, price and possession date. These are no doubt important parameters for short-listing, however there are many more important things to check before you finalize a deal.
Maharashtra approves proposal to up contingency fund to Rs 2500-crore
May 01, 2014
MUMBAI: To provide relief to farmers suffering crop losses due to hailstorm, the Maharashtra government today approved a proposal to hike the limit of contingency fund to Rs 2,500 crore from Rs 1,000 crore.
Report: With results ahead, realty segment positive about future trend
Apr 30, 2014
MUMBAI; As the country awaits the election verdict, both the current as well as future sentiment in the realty industry depicts a significant upward trend, reveals the latest quarterly Real Estate Sentiment Index report by FICCI-Knight Frank.
Stock market gains will help real estate
Apr 30, 2014
MUMBAI: One of the worst-hit industries in the past three years has been real estate. Land prices have stagnated, housing demand has stagnated, commercial demand has shrunk, interest rates have gone up. The Reserve Bank of India has also implemented measures restricting access to capital for real estate firms and, at the same time, limited housing mortgage exposure for banks by assigning high risk-weights.
Ability of Indian companies to generate profit declines
Apr 30, 2014
MUMBAI: In FY13, every rupee of investment yielded only Rs 1.06 worth of revenue for India Inc, down from Rs 1.20 in March 2008 at the height of the economic boom. The bad news doesn’t end only at the steady decline in revenue yield for companies, led by mainly those in construction and infra, realty, metals and mining, telecom and the power sector. The infrastructure and real estate boom proved too costly for Indian companies.
Real estate may get a boost on Akshay Tritiya, agents say
Apr 30, 2014
THANE: Property developers and real estate agents in the city are hoping that by next weekend, many of the under construction houses and townships will be booked. Any festival is considered to be an auspicious time to invest in real estate and Akshaya Tritiya is no exception.
Property market receptive this Akshay Tritiya
Apr 30, 2014
MUMBAI: To say that the property market of Mumbai has been subdued for quite some time would be stating the obvious. Reports of inventory pile up and appreciation despite slow sales have only made the sentiments bearish. The macro-economic outlook in the last year, has also not supported the cause of real estate market in the city. Amidst this gloomy scenario, comes the festival of Akshay Tritiya, which has traditionally been known for property acquisition in the city. It has not only got the em
Indian real estate awaits proactive government
Apr 30, 2014
MUMBAI: Like most other business sectors, the Indian real estate market holds its breath for a stronger and more determined government. The perception which is currently driving market sentiments is that market momentum can either accelerate, remain unchanged or decelerate depending on which party is voted into power. Speaking purely from the viewpoint of market sentiment, there is some validity to this perception. However, the fact is that the true benefits of political stability and proactive

Latest Realty News Of State

Realty Talk's