The shares of real-estate developers tumbled on April 7, accompanying the overall market as US President Donald Trump's reciprocal tariffs triggered recession and trade war fears. The sharp selloff in realty stocks pulled the Nifty Realty index down by nearly 6 percent to close at 776.
While US recession and inflationary pressure remain in sight following the tariffs and counter measures by other nations, few experts suggest that the effect may spill over to the global market. Any economic slowdown is expected to create a strong slump in the real estate sector.
Anant Raj shares closed nearly 8 percent lower, while those of Sobha were down over 7 percent. Heavyweight stocks DLF and Godrej Properties also ended the session nearly 7 percent lower.
Other real estate stocks that closed with strong losses include Macrotech Developers, Prestige Estates, Brigade Enterprises, Oberoi Realty, Raymond and Phoenix Mills.
"Today's sharp correction in the Indian stock markets is largely a spillover from global concerns, rather than domestic fundamentals. The recent US tariff announcements are not specifically targeted at India, they are being applied worldwide. So, while India's direct export exposure to the US is limited, the broader implications of a global tariff regime are unsettling markets everywhere. The real worry lies in how such policy moves could fuel inflation, disrupt supply chains, and trigger a slowdown or even recession over the coming years,” says Abhishek Jaiswal, Fund Manager at Finavenue.
Vipul Bhowar from Waterfield Advisor said, "Currently, the Indian market faces challenges stemming from global uncertainties, which may impact our expected GDP growth. The focus will be on the responses of our government, corporate strategies, and monetary policies to these developments."
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.