Realty shares tumble
Anant Raj Industries (down 10.61%), Prestige Estates (down 9.80%), Indiabulls Real Estate (down 7.12%), DLF (down 4.72%), Unitech (down 4.60%), D B Realty (down 4.32%), Sobha Developers (down 3.65%), Parsvnath Developers (down 2.71%), Godrej Properties (down 2.69%), HDIL (down 2.32%), Peninsula Land (down 2.29%), Sunteck Realty (down 1.77%), Phoenix Mills (down 1.53%) and Oberoi Realty (down 0.97%), edged lower.
The BSE Realty index was down 4.01% to 1,389.41. It underperformed the Sensex, which was down 1.40% at 15,274.40.
The BSE Realty index had underperformed the market over the past one month until 16 December 2011, falling 13.49% compared with the Sensex's 7.66% decline. The index had also underperformed the market in past one quarter, sliding 19.67% as against 8.52% fall in the Sensex.
High interest rates keep realty sales growth under pressure as purchases of both residential and commercial property are largely driven by finance.
At its mid-quarterly monetary policy review meet on Friday, 16 December 2011, the Reserve Bank of India (RBI) left its main lending rate unchanged. The central bank also refrained from cutting the cash reserve ratio (CRR) despite tight liquidity in the system. The repo rate was left steady at 8.5% after increasing it 13 times since March 2010. The bank rate also remains static at 6%. The central bank kept its end-March 2012 inflation forecast unchanged at 7%.
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