Nifty Realty Index Down 9% in April

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Nifty Realty Index Down 9% in April
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- The real estate sector is the second-largest employer of people in the country after agriculture. It accounts for around 6-7% of the GDP. If this sector gets hit, it is certain that economic growth in the country will also be affected.

April has not been good for this sector. The second wave of the virus has caused quasi-lockdown-like situations across large parts of the country. The most severely impacted state has been Maharashtra, which is home to India’s largest realty market: Mumbai. The Nifty Realty Index is now below its December 31, 2020 level.

Nifty Realty index closed April 22 on 305.15. It closed March 31, 2021, at 334.14. It closed December 31, 2020 at 313.85.

Nifty Realty is still almost 90% higher than its 52-week low which is a very good sign but if the lockdowns and curbs persist, the number can go lower. The two quarters from October to March saw the sector recover smartly as demand for residential realty soared.

In fact, Sunteck Realty Ltd (NS: SUNT ), a Mumbai-based firm, reported a 27.38% rise in total collections to Rs 321 crore in Q4 FY21 as against Rs 252 crore in Q3 FY21. This was a record number in collections for Sunteck. Pre-sales also rose 6.30% to Rs 371 crore in Q4 FY21 as compared to Rs 349 crore in Q3 FY21.

However, this news was tempered by the fact that India recorded over 3.32 lakh new cases of COVID-19 and over 2,245 deaths on April 22. Unless the vaccination drive resumes in full force and lockdowns are done away with, a horrible April could extend to a terrible May as well.

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  • Xpertvoice Invest xpert @Xpertvoice Invest xpert
    Realty sector is the one which is being hurted by increasing cases of COVID 19.
    Like 0

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