Modi's war on black money: Real estate stocks plunge 20% on BSE, NSE

The share price of real estate companies crashed on the BSE and the National Stock Exchanges on Wednesday a day after Prime Minister Narendra Modi announced the eradication of Rs 500 and Rs 1000 banknotes from the system effective November 8 midnight in a swift move to clamp down on black money in the system and against terror financing. 

The real estate sector which is infamous for being the biggest receiver and hoarder of black money in the domestic economy, is likely to take a massive hit. The sector has already been struggling in the last two years, with sky-high prices and piled up inventories. 

On the BSE and NSE, real estate companies were the top losers.

On the BSE, the shares Delta Corp Limited were down at Rs 129.90, Rs 32.45 or 19.99% below the red line. The shares of Housing Development & Infrastructure were down Rs 11.50 or 15.45% lower at Rs 62.95 apiece, DLF (down 16.81%), Prestige Estates Projects (down 10.38%), Indiabulls Real Estate (down 14.91%), Dewan Housing Finance Corporation (down 11.22%).

On the NSE, the CNX Realty index was trading at 172.95, down 25.25 points or 12.74% from previous close.

Delta Corp here was down 11.98%, DLF (18.70%), Godrej Properties (down 2.78%), HDIL (down 15.84%), Indiabulls Real Estate (down 14.89%), Oberoi Realty (8.47%), Phoenix Mills (down 3.60%), and so on.