Shares of Realty index slipped in the morning trade on Friday ahead of Goods and Services Tax (GST) council meeting late today. The index is down as selling pressure was seen in Sobha, Godrej Properties, Sunteck and DLF.
Shares of Sobha extended losses in the morning trade after block deal. According to the media reports, ~39.2 lakh shares or 4.1% equity of the company changed hands in a block deals.
Godrej Properties shares slipped 2% after brokerage firm Morgan Stanley has downgrade the stock to underweight from equal-weight, and target raised to Rs802 from Rs707 per share.
On the other hand, Oberoi Realty, Brigade and Indiabulls Real Estate are trading in the positive zone.
As per media reports, the Indian real estate developers have demanded from the finance minister Nirmala Sitharaman to think of lowering down the GST on raw material and if she wants existing two tax slabs of 1% and 5% to give 100% dividends.
The real estate firm said that lower GST on raw material will bring down their input cost leading to price correction that would help home buyers to pay less and for the industry sales growth is directly beneficial for the developers., the media report added.
Meanwhile, equity benchmark indices extended losses with the Sensex declining 195 points at 39,406 levels. The Nifty dropped 54 points at 11,778 levels.
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