Booming realty shares in India yet to win over BNP Paribas

Mumbai

PROPERTY developers have beaten every industry group on India's benchmark equity index this year, but BNP Paribas Asset Management India Pvt isn't impressed.

A gauge of realty stocks has soared 62 per cent since Jan 1, almost five times the climb in the S&P BSE Sensex, as the government took steps to bolster the industry that was one of the worst hit by its cash ban in November. "They have moved up sharply, but we have our reservations," said Karthikraj Lakshmanan, a senior fund manager of equities at BNP Paribas. "Our focus is on whether a developer has been able to generate cash flow and deleverage. That we haven't seen in a meaningful way."