Real estate and housing finance company shares were battered in early trade on Wednesday as it is being felt that Prime Minister, Narendra Modi’s announcement to demonetise existing Rs 500 and Rs 1000 notes will impact the housing sector the most. At 9.40 AM, Delta Corp was trading 20 per cent or Rs 32.45 down at Rs 129.90, while HDIL shares fell 15 per cent and was trading at Rs 63. Prestige Realty was down 14.93 per cent or Rs 26.95 at Rs 156.05, while Indiabulls Real Estate slipped 14.47 per cent or Rs 11.65 and was trading at Rs 68.85.
Realty major DLF was down 13.15 percent or Rs 41.25 and was trading at Rs 124.45, while Unitech slipped 12.5 per cent down or Rs.0.70 at Rs 4.99.
The housing finance stocks met with collateral damage on account of the possible hit that the real estate sector might take on account of the the Modi government’s head-on attack on black money. DHFL was trading down 13.15 per cent or Rs 41.25 down and was trading at Rs 272.50, while Indiabulls Housing Finance was down 12.59 per cent or Rs 99 to trade at Rs 687.85. Leading housing finance company, LIC Housing Finance was down 7.35 per cent or lower by Rs 40 to trade at Rs 508.80.
On Tuesday, Prime Minister Narendra Modi announced the government’s decision to phase out all existing Rs 500 and Rs 1000 notes which will be replaced by new series of Rs 500 and Rs 2000 notes. Experts felt that the biggest hit on account of the historic move to tackle the menace of black money would fall on the real estate sector where huge transactions take place in cash. HDFC Chairman, Deepak Parekh was among those who had pointed out the likely hit the real estate sector might take on account of the government’s decision.