The
Indian Government Demonetization of 500 & 1000 currency note kicked down
real estate companies. The listed Companies like DLF, Oberoi Realty and others
already witnessed 25 to 30% correction. Given the ongoing notes from different
bodies of government coming on daily basis, it is clear that Government
initiative will make it harder for new home or commercial buyers to buy the
property whereas the cash oriented sector may face major cash crunch.
Government
already made it clear that their next target would be benami property which
will lead to a situation where in Real Estate inventory will pile up. The
already inventory stressed sector based companies may witness fall in their new
bookings, cancellations of bookings and subsequently lower revenue. I won't be
surprised if some of the profitable companies go into red.
In
my point of view, real estate listed companies may correct another 30% in
coming months.
It's
a golden opportunity for the investor to keep on tracking some of the good
companies like DLF,Oberoi,Shoba Developers and others in order to grab those
share at rock bottom level and hold it with long term view.
Please
stay away from F&O market.
Disclaimer:
Consult your financial adviser before investing.
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