Shares in Mumbai's leading real estate developer, Housing Development and Infrastructure Ltd (HDIL) dropped 16 per cent in trade today, after credit rating agency Credit Analysis and Research Ltd (CARE) downgraded the company's debt, citing "delays in servicing" obligations.
The share of HDIL one of the high beta names was down 16 per cent at Rs 50, on the National Stock Exchange. The stock has seen a sharp drop from a level of Rs 120 in Jan to the current levels.
Market sentiments for the real estate sector stocks have taken a beating in the last few weeks, following immense speculating in these stocks in January.
Marketmen believe that stocks from the sector would continue to languish, following high levels of debt and no major revival in the real estate sector.