2012 : Indian Realty stocks to underperform

The top of the year  2011, realty sector, which saw maximum value destruction amongst the BSE sectoral indices. While the BSE Sensex declined by about 23% in the calendar year-to-date (December 26, 2011) sectoral indices of the realty sector plummeted by 50%.

The negative trend in Indian real estate industry is likely to continue as liquidity will remain a concern for the sector. Buyers will also remain away from projects which require longer execution periods.
The India real estate sector will continue to underperform as interest rates continue to be high, both for the developers and buyers.

Overall fundamentals and buyers sentiments are continue to be weak for the sector and recovery is not expected in the next 5-6 months

BSE sectoral indices will continue to underperform in 2012 due to slackening demand, lack of funds and uncertain economic and finance conditions.

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