Amid the debris of a battered Indian real-estate sector, some analysts say investment bargains may be emerging. Their favorites: blue-chip property companies DLF and Unitech.
This has been a miserable year for Indian property stocks. Rising inflation and interest rates have delivered a double whammy: Capital is more expensive, and consumers are scaling back spending.
The real-estate sector has been witnessing a cash crunch, says Shaleen Silori, a real-estate associate at ICICI Securities in Mumbai.
As a result, Indian real-estate stocks have taken a bashing. So far in 2008, shares of key players DLF and Unitech have skidded 58% and 61%, respectively. In comparison, Indias benchmark index, the Bombay Stock Exchanges Sensex, is down 33%.
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