Demonetisation To Hit Real Estate Sector: Moody’s

Swarajya Staff

Dec 01, 2016, 08:49 PM | Updated 08:49 PM IST

Construction/Real estate
Construction/Real estate

Global credit rating agency Moody's Investor's Service on Wednesday (30 November) said volumes in the real estate sector would be negatively affected in 2017 due to demonetisation.

Sector-wise, the outlook for exploration and production firms reflects higher production volumes, low subsidy burdens and a recovery in oil prices, which will offset lower natural gas prices and higher royalty payments.

In the telecom sector, operators will face intensifying competition and pressure on margins although growth in data consumption will offset the headwinds. The outlook for the ferrous and non-ferrous metals and mining segments reflects their expectation for earnings growth, supported by higher production volumes.

In the automobile sector, companies will benefit from improving customer sentiment following an above-average monsoon season, expected falling vehicle prices when the Goods and Services Tax comes into force from April 2017.

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