Realty stocks extended losses for a second consecutive day as profit booking continued in these stocks. The National Stock Exchange’s realty index fell as much as 4.6 per cent on Tuesday after closing 5.45 per cent down on Monday.
The sharp fall in realty stocks came amid a selloff in broader markets. The Sensex fell nearly 300 points, while the broader Nifty slipped below the key 7,300 levels as markets saw an extension of a selloff that started in late trading.
Traders said the selling in realty stocks indicated profit taking after a dream run. The CNX Realty index has gained nearly 23 per cent over the last one month as compared to 8 per cent gain in Nifty.
Realty stocks have gained on hopes that the new government led by Narendra Modi will pursue growth and clamp down on high interest rates. The Reserve Bank of India has raised rates thrice since September.