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REAL ESTATE STOCKS BOOM

By
Real Estate Agent with bharatwajbildtechpvt.

 

Real estate companies are on a roll on the bourses. In less than two months since the BSE sensex saw its 2009 bottom on March 9, price of six realty stocks on the BSE have more than doubled (see table) while price of 26 stocks have gained over 50% during the same period. Compared to this, the BSE sensex has gained about 46%.

  

On an aggregate basis however, investors in these stocks have made just about Rs 31,000 cr during this period with combined market capitalisation of 54 listed realty stocks at Rs 77,400 cr.

  

While analysts said a combination of factors have led to this sudden surge in stock prices, market players are advising caution to investors.

  

At least three reasons have led to the spurt in real estate stocks: the recent spate of debt restructuring by the highly-leveraged real estate companies, some pick up in sales volues, at least by the sector leaders, and sale of assets or reduction in land

banks, sector analysts said.

  

The third reason for the rally is lately some of the large firms sold part of their assets or backed out of ambitious projects. Meanwhile, Heavy selling after midseason gains, weighed on the local bourses as sensex dropped by 178 points.

 

Courtesy:- TOI dt:- 07-05-2009

 

 

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