We are negative about the realty space: Ambareesh Baliga

Ambareesh Baliga, VP, Karvy Stock Broking Ltd in a chat with ET Now talks about the property stocks.

What about property stocks the likes of Indiabulls Real Estate for example which took a bit of a downtick. That 10% high or service tax on commercial real estate leasing with the retrospective effect, you think it’s a big dampener for a predominantly commercial real estate company?

It should be. I think it’s a big dampener and overall our view on realty space has been quite clear for the last couple of months. We are still quite negative overall. It is just not that commercial realty space overall, we are negative on the realty space as such. Looking at the sort of inventory build up which is there, the property prices especially in the A grade cities can't really move up much more from where they have. We have seen a decent move up in the last couple of months and at the same time you will also have pressure building up on the input side which again is not too good for the realty space.