Top Picks: Sobha Developers, Kolte Patil and Prestige Estate remain our top sectoral picks. Over last 3M, BSE Realty index has risen 15% outperforming Sensex by 6%. Whilst there has been volume recovery post demonetization, its not significant to drive growth. RERA has resulted in sharp drop in new launches, which shall continue to impact pre-sales and cashflows. Sectoral overhangs (IT/ITES weak job sentiment) continue to be key headwinds whilst GST may not result in meaningful savings for buyers. Unorganized to organized shift yet to reflect in numbers.