Realty stocks end mixed as RS passes real estate bill

first_imgMumbai, Mar 11 (PTI) Realty stocks ended the day on a mixed note today after a bill seeking to regulate the real estate sector, bring in transparency and help protect consumer interests was passed by Rajya Sabha. Cheering the move, shares of D B Realty went up by 2.58 per cent, Phoenix Mills climbed 1.75 per cent and DLF gained 0.38 per cent on BSE. In contrast, some companies witnessed selling as shares of Housing Development and Infrastructure Ltd fell by 2.18 per cent, Unitech dropped by 1.79 per cent, Prestige Estates by 1.49 per cent and Godrej Properties by 1.15 per cent. The BSE realty index too fell by 0.30 per cent to end at 1,179.45. “The bill is expected to improve transparency and help numerous home buyers in the long term, but the bill does not seem to have a huge impact in the near term. However, barring few stocks, others soon corrected on the back of profit booking,” said Hiren Dhakan, Associate Fund manager, Bonanza Portfolio Ltd. It is touted as a major reform measure to regulate the vast real estate sector and bring order to it.Realty developers and consultants also hailed the passage of the regulatory bill in Rajya Sabha, saying the law will bring credibility to property business and protect consumers interest but felt that some of the provisions like imprisonment are harsh.The new law would boost home buyer confidence as well as investment in the realty sector, they said. “Everyone welcomes the bill. We respect the wisdom of Parliament. There are some provisions like imprisonment which are harsh and may be passage with the time they will be set right,” DLF Chief Executive Rajeev Talwar told PTI. The developers expressed dissatisfaction over inclusion of the ongoing projects in the Real Estate (Regulation and Development) Bill. They wanted government authorities, which sanctions the project, to be brought under this bill. PTI SUM MRadvertisementlast_img