Lodha, Godrej Properties, other realty stocks slide up to 5% as IT rout sparks fears over housing demand

Real estate stocks plunged up to 5% on Tuesday amid a bloodbath in the IT sector, which is staring at an existential crisis on AI led challenges. India’s tech sector is among the top employers and is linked to the commercial real estate and urban housing demand.

The Nifty Realty index fell 3% today to hit the day’s low of 819.15 with all 10 stocks trading in the red. The worst fall was recorded in Prestige Estates Projects, which was down 5% around 2 pm. The other top losers were Lodha Developers, Signatureglobal (India), and Godrej Properties, which were down between 3%-4%.

DLF, Sobha, The Phoenix Mills, Brigade Enterprises, Anant Raj, and Oberoi Realty between 1% and 3%.

The blood bath in IT stocks brought Indian headline indices down like a pack of cards. While Nifty fell 1.4% or by 350 points to 25,361.50, the BSE Sensex tumbled 1,300 points to hit the day’s low of 81,934.73.

IT companies such as Tata Consultancy Services (TCS), Infosys, and HCL Technologies, among others, faced heavy selling pressure in Tuesday’s trade after Anthropic said its Claude Code tool can be used to modernise legacy systems that run on COBOL.

Infosys shares slid over 4%, HCL Technologies dropped 6%, and Mphasis fell 4%, while Persistent Systems plunged more than 7%. TCS declined 4%, Tech Mahindra 7%, and Wipro around 3%, pulling the Nifty IT index down nearly 5% to 30,026.05 as of 2:26 pm
Also read: Stock market crash: Investors lose Rs 6 lakh crore as Sensex crashes 1,300 pts. 6 factors why stock market is falling today

Realty stocks outlook

Dr. Ravi Singh, Chief Research Officer at Master Capital Services, attributed Tuesday’s fall to IT’s debacle. In his view, the sentiments around realty stocks have dampened because of fears that the office and urban housing demand could take a hit if IT industry falters.
“Both realty and IT stocks are under pressure today, with IT down around 5% and realty slipping close to 3%. The weakness seems more about overall market nervousness than any one specific event. In IT, investors are still unsure about short-term growth, especially with global demand concerns, rising bond yields, and the ongoing discussion around AI impacting traditional business models,” Singh said.

Since real estate is sensitive to interest rates, higher bond yields, and tight liquidity, realty stocks are seeing profit booking after gaining nearly 15% in the past few weeks, he said.

“For now, this looks like sentiment-driven selling rather than a deep structural problem. The long-term story for both sectors remains intact, but in the short term, momentum has cooled, and volatility is picking up,” he added.

Realty stocks performance snapshot

Realty stocks have been big underperformers in 2026 so far. The Nifty Realty index is down 10% on a year-to-date basis. On a 1-year basis, the index has slipped 5%.

Brigade Enterprises, Lodha, Signatureglobal and Godrej Properties have seen their prices erode in double digits up to 27% over a one-year period. A handful of stocks like Sobha, Prestige Estates, Phoenix Mills and Anant Raj have managed to hold on to gains between 5% and 24% in the same period.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)