Last year, when the Indian markets fell by almost 65% from its peak of around 21,000 levels, Realty sector was the most beaten down to the tune of 90-95%, not even sparing the market leaders. People thought that it was “real estate bubble” that has burst. Investors stayed away from this sector. However, the sector has again risen almost from its grave to see the shine & to sparkle like diamond. If you don’t want to believe read this story. And here I must say that if you can’t afford to take the direct exposure to buying land or villas or apartments, buy few shares of good realty companies & your dreams of owning villa might come true.
FIIs, who resumed their buying spree after a brief pause in the run up to the Budget, are placing their bets on realty stocks. FIIs, who have net bought equity worth more than $6 billion so far this year, have increased their stakes substantially in top realty companies in three months, boosting prices of stocks in the sector.
FIIs have more than doubled their stake DLF, in the country's top real estate company. FII holding in DLF stands at 15.4% for June, the highest since its listing. FIIs have more than trebled their stake in Unitech, which has raised $900 million between April and June.
BSE Realty index, which is among the top performers in the current rally, gained most last week moving up 13.3% while sensex registered 4.3% increase. The rally was led by DLF, which zoomed 18.3% followed by HDIL and Unitech that gained 15.9% and 14.3% respectively.
Stock prices (of realty firms) had corrected 90-95 % from their peaks. But the latent demand (for property) is still high. Now, big investors have come in and realty firms have also reduced debt and as a result equity values have gone up.
FII holding in Unitech, the country's second largest property developer have jumped from 5.96% in December to 22.79% in June, the highest exposure in more than three years. FII stake in the top two realty majors has hovered between 6-8 % in the past two years. FIIs have also increased their stakes in Indiabulls Real Estate (from 41.73% in March to 61.71% in June), Housing Development and Infrastructure and Orbit Corporation.
Snapshot of FIIs’ holding in some real estate sector companies –
Some +ves -
Jun08 / Dec08 / JUN09
DLF - 6.55 / 6.85 / 15.40
UNITECH - 5.41 / 5.96 / 22.79
IBREL - 41.69 / 42.92 / 61.71
HDIL - 9.34 / 10.02 / 7.05 - No. of FIIs increased from 63 to 113.
Some –ves -
Jun08 / Dec08 / JUN09
Orbit Corp - 11.63 / 6.35 /6.50
Ansal Infra - 12.05 / 17.00 / 7.78
Ansal Housing - 19.56 / 16.69 / 3.81
Mahindra Life - 21.74 / 26.74 / 18.27
FIIs, who resumed their buying spree after a brief pause in the run up to the Budget, are placing their bets on realty stocks. FIIs, who have net bought equity worth more than $6 billion so far this year, have increased their stakes substantially in top realty companies in three months, boosting prices of stocks in the sector.
FIIs have more than doubled their stake DLF, in the country's top real estate company. FII holding in DLF stands at 15.4% for June, the highest since its listing. FIIs have more than trebled their stake in Unitech, which has raised $900 million between April and June.
BSE Realty index, which is among the top performers in the current rally, gained most last week moving up 13.3% while sensex registered 4.3% increase. The rally was led by DLF, which zoomed 18.3% followed by HDIL and Unitech that gained 15.9% and 14.3% respectively.
Stock prices (of realty firms) had corrected 90-95 % from their peaks. But the latent demand (for property) is still high. Now, big investors have come in and realty firms have also reduced debt and as a result equity values have gone up.
FII holding in Unitech, the country's second largest property developer have jumped from 5.96% in December to 22.79% in June, the highest exposure in more than three years. FII stake in the top two realty majors has hovered between 6-8 % in the past two years. FIIs have also increased their stakes in Indiabulls Real Estate (from 41.73% in March to 61.71% in June), Housing Development and Infrastructure and Orbit Corporation.
Snapshot of FIIs’ holding in some real estate sector companies –
Some +ves -
Jun08 / Dec08 / JUN09
DLF - 6.55 / 6.85 / 15.40
UNITECH - 5.41 / 5.96 / 22.79
IBREL - 41.69 / 42.92 / 61.71
HDIL - 9.34 / 10.02 / 7.05 - No. of FIIs increased from 63 to 113.
Some –ves -
Jun08 / Dec08 / JUN09
Orbit Corp - 11.63 / 6.35 /6.50
Ansal Infra - 12.05 / 17.00 / 7.78
Ansal Housing - 19.56 / 16.69 / 3.81
Mahindra Life - 21.74 / 26.74 / 18.27
3 comments:
what is the reason behind that some companies in the profit but some in the loss in real estate market?
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