Realty stocks plunges 6.07% on heavy capital outflows

MUMBAI: Realty stocks were the biggest losers on Thursday falling by over six per cent in early trade on the Bombay Stock Exchange, following heavy capital outflows by jittery foreign funds on fears that worsening financial crisis would dampen demand for property.

The BSE realty index fell by 111.16 points, or 6.07 per cent at 1,1719.78 points after all the 14 constituents of the sectoral barometer were down in a range of two to 7.5 per cent.

Market analysts said selling pressure gathered momentum after reports that India's biggest developers, DLF Ltd, has deferred some residential, commercial and hotel projects due to lower demand and liquidity crunch.

They said Unitech plans to sell hotel properties under construction and reports that the country's leading developers have agreed to cut property prices are putting pressure on the realty stocks.

Meanwhile, an international rating agency has cut its forecast for India's economic growth in 2008-09 and 2009-2010.

DLF Ltd stocks fell by Rs 14.70,or 6.55 per cent at Rs 209.70, while Unitech Ltd lost Rs 2.55, or 6.54 per cent at Rs 36.45 on the BSE.

Besides, Sobha Developers fell by Rs 4.30, or 4.82 per cent at Rs 84.85, Omaxe Ltd by Re one, or 1.96 per cent to Rs 50 and Parsvnath by Rs 1.80, or 4.79 per cent at Rs 35.80.

Indiabulls Realty was down by Rs 7.60, or 7.46 per cent to Rs 94.30, Ansal Infra by Rs 2.10, or 6.09 per cent to Rs 32.40, Aakruti City by Rs 14, or 2.19 per cent at Rs 625.50, Orbitco by Rs 3.95, or 6.70 per cent at Rs 55 and Anant Raj Ind by Rs 1.15, or 2.59 per cent at Rs 45.50.