Sobha is one of the top five losers on the BSE since the opening bell. The stock opened with a loss of 3.5% at Rs.526.50 and went on to hit an intraday low at Rs.510.35, going down 6.5%.
One of the biggest realtors in Bengaluru, the impact on Sobha could be big if the Karnataka Govt does go ahead with a 5-year ban on construction of multi-storey residential buildings in Bengaluru on account of the mounting water crisis in the city.
In these tall apartments, most of the dwellers are promised a perennial supply of water but soon taps run dry as water sources dry up. And then the vicious circle of tankers begin. This is what the Govt wants to stop and bring down mindless construction.