After much hue and cry from the public regarding the ban on 500 and 1000 rupee notes by the Central government last night, today at the closing of Sensex, share prices of DLF, HDIL, IndiaBulls, Oberoi Realty, Prestige, etc. witnessed a slope down by its respective percentages.
Real estate section hit the worst as 500 and 1000 rupee notes got discarded the center which was announced late night by H’nble PM, himself, on the basis of “surgical strike” on black money, corruption, terrorism reference. The high denomination currencies will not accepted anywhere anymore thus introducing Rs. 2000 note in Indian currency 2 days later to which real estate majors got subjected to share sloping down at once.
DLF shares went down by 23.8% eventually being the biggest losers wherein other competitors HDIL was at 16.24% low, Oberoi Realty sloped by 9.95%, Indiabulls at 6.55% low, Prestige settled to 0.11% and Kotak Securities slipped by 0.23% henceforth sending condolesences to the land owners in the country.
The crashing of the real estate was quite expected as transactions or trade “in cash” is valued the most as well as plays as the King. Ban on 500 and 1000 rupee note on permanent basis last night essays a significant role in the downfall of share prices. Infact the slope of share prices is quite steep in BSE and NSE if compared to the benchmark creation.
Although, the Sensex is likely to surge high soon as government plans to introduce Rs. 2000 note and renew Rs. 500 note which might come as merry decision for the real estate market. “The perception that the sector is used to deploy cash will subside over a period of time, which augurs well for real estate companies”, as stated to ibtimes.co.in
The brokerage experts reportedly stated that, Only individuals with large sums of unaccounted cash will be affected by the government’s move. In real estate, we believe most of the cash is used in land transactions (by entities or individuals) and sellers potentially hold un-explainable sums. Post the Income Declaration Scheme 2016, and the recent government doctrine, we believe it could be difficult for them to adjust such huge sums of cash.
DLF share prices slided to Rs. 118.30 with a depreciation of 25.05 points by 17.47%. Market Capital stood at 211.10B with P/E Ratio at 30.61 at 3:08p.m. HDIL shares closed to Rs. 62.20 with 12.30 points down by 16.51%. Market Capital declared at 27.12B with P/E Ration at 8.05.
Oberoi Realty shares sloped to Rs. 302.40 with 36.30 points low by 10.72%. Market Capital stood at 102.97B with P/E Ration at 21.92. Indiabulls Ventures share priced at Rs. 22.15 with 1.50 point low by 6.34%. Market Capital stood at 651.38 with P/E Ration at 10.33.
Prestige Estates closed to Rs. 183.65 with 0.35 points high by 0.19%. Market Capital stood at 69.27B with P/E Ration at 25.5. Kotak Mahindra share price stood at Rs. 819.50 with 8.45 points high by 1.04%. Market Capital stood at 23.23 with P/E Ration at 35.11.