HDIL top loser on BSE

HDIL is currently the top loser on the BSE, down 9% at Rs.55.55 and it hit a new 52-week low today at Rs.52.20. With more sellers dotting the counter than buyers, it is streaked in deep red.

The stock has plunged on market rumours that the Maharashtra Gov might cancel its contract for Mumbai International Airport Limited project, where it is building homes under slum rehabilitation. Though the company has refuted these rumours, market refuses to relent. Moreover, with banks not expected to transmit yesterday’s 25 bps rate cut by RBI, as such, realty stocks are down as EMI’s are not expected to come down in a hurry and demand would remain low.

There is also a big worry of bankruptcy and though the company has denied this, marketmen fear the worst. In early Jan, the promoter of the company had to urgently sell some stake to raise Rs.57 crore for land payment. For a company which was the largest realty company in terms of market cap, this panic sale sparked fears and till date, it has not been able to dissipate these worries.