Sobha, Prestige dip after K'taka govt mulls construction ban for 5 yrs

Topics Buzzing stocks

Real Estate
Shares of south India based real estate companies mainly Sobha, Prestige Estates Projects and Brigade Enterprises have fallen by up to 7 per cent on the National Stock Exchange (NSE) in intra-day trade on Friday after reports suggested that Karnataka government was mulling to ban construction activity in the state for 5 years owing to acute water supply shortage.

Among the individual stocks, Sobha dipped 7 per cent to Rs 507, followed by Brigade Enterprises (down 6 per cent at Rs 247) and Prestige Estates Projects (down 4 per cent at Rs 267) on the NSE.

All these stocks have erases partial of their respective intra-day losses and were down less than 2 per cent on the NSE, as compared to 0.17 per cent decline in the benchmark Nifty 50 index at 01:17 pm.

“The Karnataka government is contemplating to ban construction of apartments in Bangalore for next five years due to severe shortage of drinking water faced,” deputy chief minister G.Parameshwara said on June 27.

The decision, however, would be finalized after discussing with the builders, he added.

Thus far in the calendar year 2019, Sobha, Prestige Estate Projects and Brigade Enterprises had outperformed the market by surging in the range of 15 per cent to 21 per cent. In comparison, the benchmark Nifty 50 index up 10 per cent till Thursday.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel