Our Bureau

Mumbai , Oct. 17

STOCK prices of companies, which own huge real estate in Mumbai, fell sharply following the Bombay High Court's judgment setting aside the sale of National Textile Corporation (NTC)'s land in the city.

Brokers and analysts turned cautious after the court's decision as they expect that these companies may not realise the full value as the value of the land would fall.

Among the stocks that fell today include Bombay Dyeing (down 6.96 per cent at Rs 332.15 on BSE), Nirlon (7.43 per cent at Rs 16.20), Morarjee Realities (4.34 per cent at Rs 260.20) and Nesco (down 4.35 per cent at Rs 554.75). Stock price of other companies too fell but trading volumes in them were very low.

Most of the market players, who have interest in the real estate companies' shares, were not clear what the order exactly means but they said the judgment was not positive for companies planning to sell land.

The Indiabulls Financial Services Director, Mr Gagan Banga, said, "We are still reading the full order and until the details are known, it is difficult to comment on the impact of the order".

Indiabulls had bought land in two mills in Mumbai this year for development into real estate.

Stock price of these companies, which have land in Mumbai, had risen in the past on the potential value of the land although their main business was negligible.

Dealers said that following the High Court order, the value of land of these companies would come down and this may not result in the full unlocking of the value as anticipated by market players.

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