Realty stocks plunges 7%, Unitech loses 14%

Realty stock suffered the most in early trading today as the sectoral index crashed by almost 7% on heavy capital outflows by jittery foreign funds after a rating agency downgraded the country's second largest realtor Unitech Ltd, sending its shares tumbling 14%.

Reflecting the bearish mood in realty stocks, the Bombay Stock Exchange realty index dropped 135.86 points, or 7%, to 1,717.63 points, with all the 14 constituents of the sectoral indices falling up to 7.43%.

Unitech dipped almost 14% to Rs 30.10 in early trading on the BSE. Over, 49.85 lakh shares changed hands.

The country's largest realty firm DLF dipped 8% at Rs 194.10 and nearly 6.43 lakh shares traded on the bourse.

Market analysts said selling pressure gathered momentum after rating agency Fitch downgraded Unitech's National Long-term rating to 'B' from 'BBB' and also downgraded the ratings of its debt instruments.

They said fears of disappointing third-quarter earnings too put pressure on the realty sector stocks.

Besides, Akruti city fell 3.33% to Rs 590, Ansal Infra 4.15% to Rs 25.40, HDIL 4.61% to Rs 101.35 and Indiabull Real Estate 5.60% to Rs 115.45.

Sobha Developers dropped 3.59% at Rs 83.25 and Parsvnath 3.36% to Rs 38.85.