'Daata daani' retail is giving exits to Promoters to buy Luxury Homes, says Shankar Sharma

Decoding the puzzle of rising real estate prices, market expert Shankar Sharma said that retail money is key, which has led to a sharp rise in the demand and prices of luxury properties. Sharma, in a social media post on X (formerly known as Twitter) said that the 'generous' retail investors are giving easy exits to the promoters.

Sharma said that last year retail investors gave an easy exit to overseas investors (FIIs and FPIs). This year they are given exits to promoters, who are recycling this into luxury homes.

"Booming high value property sales are puzzling people. But it doesn't need to be. It's simple. Last year Indian retail generously gave 'knife through butter' exits to F2s. Now, daata daani Retail is giving easy exits to Promoters, who are recycling this into Luxury Homes," said Shankar Sharma's tweet.

Recently, companies including Vishal Mega Mart, Wendt, Praxis Home Retail, Suzlon Energy, Hindustan Zinc, Jubilant Group stocks, Premier Energies, Aditya Birla Capital, Tata Technologies, YES Bank, Niva Bupa Health Insurance and other saw block deals from promoters and other selling shareholders.

The Indian stock market witnessed a historic bull run and retail investors have emerged as the third force after foreign and domestic institutional investors. Retail investors, armed with mobile apps, SIP inflows and infinite optimism, marched bravely into the trading battlefield in the last few years.

The retail 'daata daani' has happily absorbed the 'Long-term story intact' notion. Sharma said that the promoters, meanwhile, were spotted buying luxury villas and penthouses at exotic locations. India’s luxury home sales have soared. The segment comprises units priced at Rs 4 crore and above, recorded a 53 per cent year-on-year sales growth in CY 2024 across the top seven cities.

Recently, Troubled entity Gensol Engineering's promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, were facing scrutiny from Sebi for allegedly diverting company funds, including loans intended for electric vehicle purchases, to acquire a luxury apartment in DLF Camellias, Gurgaon. Jaggi brothers and Gensol were barred by the Sebi from the capital market until further orders.