Mumbai: Led by Unitech, realty stocks witnessed massive selling pressure Wednesday, falling sharply by up to 52 percent, a day after the RBI hinted that there may not be any more interest rate cut in the near-term.
Shares of Unitech nosedived 51.63 percent to Rs 6.50 its 52-week low at the BSE.
The stock also faced massive selling pressure amid reports of company defaulting on loans.
Housing Development and Infrastructure Ltd plummeted 16.9 percent, Indiabulls Real Estate slumped 15.33 percent, Anant Raj (11.45 percent), DLF (9 percent) and Oberoi Realty (7.73 percent).
Following the sharp losses in these scrips, the BSE realty index tumbled 6.54 percent to 1,404.32 points.
EMIs on home and auto loans are expected to come down with SBI and other banks cutting lending rates after RBI yesterday slashed policy rate by 0.25 percent.
Reserve Bank Governor Raghuram Rajan, however, cautioned that uncertain monsoon may prevent future rate cuts.
Central bank in its second bi-monthly monetary policy used subdued inflationary condition to "front load" the repo rate cut to 7.25 percent to spur investment and growth.
Meanwhile, the benchmark BSE Sensex was trading with a sharp loss of 413.37 points at 26,769.98.
