India's realty, related stocks hit by court ban in some states

Unitech

03/09/2018 10:11

** India's real estate and related sectors were hit after
reports said the top court has banned construction activities
for over a month in states  - that have not framed a solid
waste-disposal policy - like Maharashtra, Madhya Pradesh and
Uttarakhand
    ** Nifty Realty index  .NIFTYREAL  falls as much as 1.9 pct
before erasing losses, with DLF Ltd  DLF.NS  losing the most -
down as much as 4 pct
    ** Unitech Ltd  UNTE.NS  falls as much as 2.5 pct and
Indiabulls Real Estate  INRL.NS  sinks as much as 3 pct
    ** Ultratech Cement Ltd  ULTC.NS  down 1.4 pct, Ambuja
Cements Ltd  ABUJ.NS  nearly flat
    ** A prolonged blanket ban on construction activities will
hurt firms like Oberoi Realty Ltd  OEBO.NS , Godrej Properties
 GODR.NS  and Sunteck Realty Ltd  SUNT.NS , apart from ongoing
infrastructure projects - Kotak Institutional Equities analysts
write
    ** The Supreme Court on Friday banned all construction
activities until Oct. 9 in some states and centrally
administered territories, and imposed fines for not framing a
policy in solid waste management norms, media reports said
    ** Morgan Stanley analysts say ban to affect steel and
cement demand near term; ACC Ltd  ACC.NS , Ambuja and Ultratech
will see greatest impact

 ((Reuters Messaging:
tanvi.mehta.thomsonreuters.com@reuters.net))