The Nifty Realty index has declined in the morning trade on Wednesday as selling pressure was seen in Indiabulls Real Estate, Oberoi Realty, Brigade and Sunteck Realty.
According to the media reports, the Income Tax Department carried out searches at Oberoi Realty group and its vendor Capacit’e Infraprojects for suspicious transactions, including alleged purchase from dubious entities, receipt of ‘on-money’ and price manipulation and cash deposits during demonetisation period. Reacting to this news, shares of Oberoi Realty and Capacit’e Infraprojects slumped in today’s trade.
Shares of HDIL hit 20% lower circuit at Rs8.78 after it said the company will face insolvency proceedings under the provisions of the Insolvency and Bankruptcy Code (IBC) as per an order passed by the NCLT.
Shares of Indiabulls Real Estate and Oberoi Realty, which declined 3.5% each, were leading the index’s fall. Shares of Brigade, SunTeck Realty and Sobha also contributed to the fall, declining 2% each.
Shares of DLF, Mahindra Life dropped 1% each, while Godrej Properties were slightly up.
However, shares of Prestige and Phoenix cushioned the index’s fall, rising over 1% each.
Meanwhile, equity benchmark indices oscillated between gains and losses with the Sensex gaining 12 points at 37,340 levels. The Nifty dropped 5 points at 11,012 levels.
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