Equity Alert: Real estate shares down 2-3%; likely to fall more

[K.Karthik Raja]

Equity Alert: Real estate shares down 2-3%; likely to fall more
Tuesday, Jun 3
Equity Alert: Real estate shares down 2-3%; likely to fall more
MUMBAI--11:25AM--Shares of real estate companies were down 2-3% on
negative
sentiment after Prime Minister Manmohan Singh Monday hinted at a fuel
price
hike, which is expected to spur inflation, dealers said.
"Fuel price hike might prompt RBI to tinker with interest rates.
This will
put more pressure on realty stocks," a dealer at a domestic brokerage
said.
Unitech was down 3% at 211 rupees, while DLF fell 2% to 558
rupees.
Parsvnath Developers slipped 2% to 187 rupees, while Sobha
Developers fell
3% to 458 rupees.
Dealers recommend investors stay away from realty stocks until
inflation
worries ease.
"Realty stocks are in correction phase. I expect a 15-20% downside
in these
stocks in the short-term. One could buy the stocks after the
correction," a
Chennai-based dealer said.
Unitech could touch 180 rupees this week, if the market continues
to fall,
he said.

[K.Karthik Raja]

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