BSE Realty Index: A matter of timing!
The Bombay Stock Exchange launched its BSE Realty Index on July 9.
It represents about 95% market capitalisation of real-estate development companies in the BSE-500 index. The index value today stood at 7,333.97 points.
Per the BSE page, the index rose 15% over two weeks to an all-time high of 8455.25 on July 24, and since then it’s back to 7300 today! Here’s a chart that compares the performance of realty stocks vs. the Sensex-30 market index. Except for India Bulls Real Estate, every other stock has under-performed the Sensex:
A more cynical person that me would say that the launch of the index probably marked a top in realty stocks, and the quick 15% rise was ideal for the big boys to offload their holdings on to us.
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