Equity Alert: Real estate shrs fall post repo rate hike; seen weak
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K.Karthik Raja
Jun 12, 2008, 1:50:01 AM6/12/08
to Kences1
Equity Alert: Real estate shrs fall post repo rate hike; seen weak
MUMBAI--11:10AM--Real estate shares were down 2-6% after RBI hiked
the repo rate 25 basis points to 8.00% Wednesday, dealers said.
Unitech, Ansal Properties & Infrastructure, Parsvnath Developers
and Sobha Developers hit their 52-week lows today.
Akruti City was down 2%, while Unitech and DLF slid 5% and 6%,
respectively.
"The repo hike is negative because cost of borrowing will go up
for
developers. Within a fortnight, we might see banks raising home loan
rates.
EMIs (equated monthly instalments) for existing holders and new
entrants would also turn higher.
Do not rule out a further downside in the sector if the broader
market remains weak.
"Unitech is likely to find support at 168 rupees, DLF at 456
rupees and Parsvnath at 155-158 rupees
MUMBAI--11:10AM--Real estate shares were down 2-6% after RBI hiked
the repo rate 25 basis points to 8.00% Wednesday, dealers said.
Unitech, Ansal Properties & Infrastructure, Parsvnath Developers
and Sobha Developers hit their 52-week lows today.
Akruti City was down 2%, while Unitech and DLF slid 5% and 6%,
respectively.
"The repo hike is negative because cost of borrowing will go up
for
developers. Within a fortnight, we might see banks raising home loan
rates.
EMIs (equated monthly instalments) for existing holders and new
entrants would also turn higher.
Do not rule out a further downside in the sector if the broader
market remains weak.
"Unitech is likely to find support at 168 rupees, DLF at 456
rupees and Parsvnath at 155-158 rupees
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