The real estate sector emerged as the biggest loser in today’s stock market plunge, notably led by Unitech, the country’s second-largest firm, which experienced a sharp fall of over 51%.
Stock Market Decline
The realty index saw a 24.4% decline, more than double the benchmark index Sensex fall of nearly 11%. This index has dropped by 31% in a week, 55.5% in a month, and a staggering 82% over the past year.
Market Capitalization Loss
Real estate companies listed in the index witnessed a cumulative erosion of about Rs 20,000 crore in market capitalization.
Specific Company Performance
- Unitech fell by 51.3%, closing at Rs 30.1 on the Bombay Stock Exchange.
- DLF lost 24%, settling at Rs 203.9 per share.
- Other companies like Ansal Infra, Indiabulls Realty, Omaxe, Parsvnath, Sobha Developers, Peninsula Land, Mahindra Lifespace, and Phoenix Mills also saw declines ranging between 10% and 20%.
- HDIL scripts fell by 9%.
Reasons for Unitech’s Fall
The steepest fall occurred with Unitech following media reports that the firm defaulted on payments to the Greater Noida Development Authority for a land deal struck in 2006.
Unitech’s Response
In response to these reports, Unitech issued a statement to the Bombay Stock Exchange asserting that the authority has revised the payment schedule. Their statement clarified, "Unitech is currently not in default and was never in default with regard to the payment to the authority."