The Indian stock market continues trading in the red with Sensex is down 431.33 points or 1.23 percent at 34739.94, and the Nifty shed 132.20 points or 1.27 percent at 10250.80.
Real estate stocks are under pressure with S&P BSE Realty down over 2 percent dragged by Omaxe which hit 20 percent lower circuit on BSE. The stock witnessed spurt in volume by more than 4.10 times. There were pending sell orders of 232,223 shares, with no buyers available. It was trading with volumes of 658,198 shares, compared to its five day average of 163,548 shares, an increase of 302.45 percent.
The other losers included Indiabulls Real Estate which shed 4 percent. The scrip touched lower circuit of Rs 50.65 per share on BSE. Godrej Properties and Prestige Estates shed over 3 percent each while DLF, Oberoi Realty, Sobha and Sunteck Realty were the other losers.
Net sales of Sobha stood at Rs 916.60 crore in March 2020 down 35.57 percent from Rs. 1,422.70 crore in March 2019. Quarterly net profit was at Rs 53.20 crore in March 2020 down 53.74 percent from Rs. 115 crore in March 2019.
Real Estate stocks have been munder pressure after Union Commerce and Industry Minister Piyush Goyal asked the sector not to count on government support.
As per a CNBC-TV18 report, a video of Goyal urging developers to “reduce rates”, “get rid” of inventory and not be stubborn about holding onto prices was been doing the rounds on social media.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
