The real estate index dropped 38 per cent during the day mainly on speculation that a key DLF official was exiting the company and partly on fears that realty balance sheets may not reflect the correct land bank position.

The stock price of DLF, the country’s largest property company, touched an all-time low of Rs 145 in morning trade on rumours that CFO Ramesh Sanka had sold 100,000 shares from his employee stock option (Esop) portfolio and put in his papers.

The stock ended the day at Rs 217.60, over 7 per cent down over Wednesday’s close of Rs 234.60, after the CFO clarified that he had sold shares for personal reasons but still held a major chunk of Esops, and denied that he had resigned.

The BSE Realty Index, which fell 24 per cent in intra-day trading, ended the day at 1864.09 points, 5.15 per cent down from Wednesday’s close with stocks of Ansal Infrastructure, Anant Raj Industries and Peninsula Land falling 10.34, 9.94 and 9.52 per cent, respectively.

On fears of false valuations, Singh said: “We carry the land book at cost price. It has never been revalued. The land acquired by my grandfather or father still carries the same price on our balance sheet. Indians are good entrepreneurs and they make money on every opportunity. It is for them to make money.”

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