Equity Alert: Fears of hike in interest rates pull realty shrs dn

[K.Karthik Raja]

Equity Alert: Fears of hike in interest rates pull realty shrs dn
MUMBAI--12PM--Shares of real estate companies were down 2-6% on
worries
of hike in interest rates after inflation touched a 13-year high of
11.05% in
the week to Jun 7, dealers said.
Dealers said rate hike fears became imminent after government
Saturday
said monetary measures were the first line of defence against
inflation.
"It is obvious RBI will take action but the question is when and
how.
After the RBI action, the real estate shares can bounce back slightly
as some
short covering might be triggered. But more downfall is in store till
inflation comes under control," a Chennai-based dealer said.
Sobha Developers slumped 7% to 335 rupees, while Omaxe was down
over 5%
at 156 rupees. Unitech and Parsvnath Developers declined 5% to 175
rupees and
145 rupees each, respectively. DLF slipped 2% to 446 rupees.
Technical analysts pegged support for DLF and Unitech at 438
rupees and
167 rupees, respectively.
------------------------------------------------------------------------------