Loans
Real estate sector showing optimism in urban India
A sudden decline in home loan rates as a result of base rate cut by the RBI has boosted the sentiment in the Indian real estate sector, says Liases Foras in a research note
 
The performance of the Indian real estate sector during the second quarter as been encouraging and reflects an air of optimism. While price levels kept users’ curiosity intact, lower interest rates lead to increased number of inquiries. “Even as the performance of Q2 FY 2015-16 showed decline on a quarterly basis, the overall buoyancy in the market is palpable. The developments at the macro level seem promising and it is likely that the year will end on a positive note for the residential realty sector,” says Liases Foras in a research note.
 
According to the firm, during the second quarter, sales across eight major cities in India improved by 17% to 67.9 million sq ft from 57.8 million sq ft in Q2 2014-15. 
 
Decline in commodity prices has favoured the developers by bringing down their cost of construction. This arrested unwarranted rise in price levels and kept the end user’s interest intact, points out Liases Foras. In second quarter of FY15-16, the weighted average price of all the major cities in India stood at Rs6,491 per sq ft, with the rise of a meagre 1% both annually and quarterly.
 
 The movement in prices in select cities is given in the table below:
 
 
According to Liases Foras, a sudden decline in home loan rates as a result of base rate cut by the Reserve Bank of India (RBI) came as a pleasant surprise and boosted overall sentiment in the Indian real estate sector. Following the rate cut, some of the leading banks and housing finance companies reduced interest rates on home loans by nearly 25 basis points.
 
The sales performance in the major cities in the real estate sector is given in the table below:
 
 
All eight cities cumulatively clocked highest sales in the cost range of Rs50 lakh-Rs1 crore, with the sales of 22.4 million sq ft (33%), followed by cost range of Rs25 lakh-Rs50 lakh.
 
Increased number of inquiries at the onset of the biggest festive season in the country is accentuating the performance of the sector. Attractive offers, discounts and freebies have definitely led to an increase in inquiries, which is instrumental in improving the conversion rates. However, when viewed from a quarterly basis, the performance has been tepid with Ahmedabad, Kolkata, MMR and Pune on the downside. Hyderabad and Pune witnessed a rise in more than 12% sequential rise in unsold stock, the research note says.

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COMMENTS

SuchindranathAiyerS

6 months ago

This is long overdue. I was debited with renewal fee on a cancelled Standard Chartered Gold Card when I had shifted to Nairobi from Bangalore. Interest was added on it. The debt collector came and badgered my father who, without consulting me, settled. On my return, the Bank began t badger me again. I took the documents and threatened to take them to court. They gave me a letter confirming that I owed them nothing. Years later, I was refused a Credit Card by HSBC with whom I had banked for decades. Luckily, as a former banker, I used my contacts to get a copy of my credit report. I took it to Standard Chartered and told them that if they do not issue a letter to HSBC forthwith, I shall take them to court. They delivered. But think of the stress and trauma for my father who was in his eighties at the time, and the humiliation for me. What happens to somebody without the contacts to get a copy of the credit report to threaten the puisine Bank that behaves like a an Indian High Court that will set aside the Indian Penal Code to favour the sum of the Earth?

Nifty, Sensex to remain weak – Tuesday closing report
While Nifty is oversold on an intraday basis and due for a short bounce, the trend is down
 
We had mentioned in Monday’s closing report that Nifty, Sensex will make a laboured rise and that Nifty is headed higher subject to small dips. The market was bearish on Tuesday and all major indices in the Indian stock markets suffered sharp losses of around 1.5%. Trading volumes were also not too high due to the festival season.
 
The trends of the major indices during the day’s trading are given in the table below:
 
 
Both the bellwether indices opened Tuesday in the negative territory on the back of bearish sentiments following the BJP's rout in the Bihar election, heightened chances of a US rate hike and disappointing quarterly results.
 
In the automobile sector, low interest and fuel costs supported by a pent up demand and new launches during the festive season gave a boost to the domestic passenger car sales last month. The domestic passenger car sales grew by 21.80%, industry data showed on Tuesday. According to data furnished by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales during October stood at 194,158 units against 159,408 units in the like month of the previous year.  The data revealed that the total passenger vehicle sales, which include cars, utility vehicles and vans, went up by 21.46% to 268,629 units from 221,163 units sold in October 2014. Furthermore, sales of utility vehicles rose by 20.82% to 58,120 units. The off-take of vans increased by 19.79% to 16,351 units. The industry data for last month showed a 12.73% growth in the overall commercial vehicles segment sales, which is a key indicator of economic activity. The commercial vehicles segment off-take for October stood at 58,596 units from 51,978 units sold during the corresponding month of 2014. Overall exports across categories for the month under review was lower by 5.56% at 289,309 units sold abroad from 306,357 units shipped out during October, 2014. The S & P BSE Auto index rose by 0.1% in Tuesday’s trading.
 
Thanks to a dip in the prices of gold this year, brisk buying of the precious metal was seen as people opened their purse strings for Dhanteras. The newly minted "Made in India" gold coin also saw good sales. The gold coin launched by the government last week, with the images of Ashok Chakra and Mahatma Gandhi, also saw some good buying. "Till 4 p.m. we expect at least 5,000 coins to have been sold across our 18 outlets in India," an official of the Metals and Minerals Trading Corporation (MMTC) told IANS, declining to be named.  MMTC, a state-run unit, is the official manufacturer of this coin. About 15,000 coins of 5 gm, 20,000 coins of 10 gm and 3,750 gold bullions were made available through MMTC outlets initially, the government said on the day of launch.
 
The top gainers and top losers of the indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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Delhi elevated road opens - costing 40% less than budgeted!
Delhi Chief Minister Arvind Kejriwal and union Minister M. Venkaiah Naidu on Tuesday inaugurated a six-lane elevated road that was to cost Rs.247 crore but ended up costing only Rs.143 crore.
 
Speaking on the occasion, Kejriwal gave due credit for the project to his predecessor and Congress leader Sheila Dikshit while Naidu of the BJP praised the Delhi government for completing the road on a reduced budget. 
 
The 1.6-km road on the Ring Road connects Azadpur and Prembari Pul in north Delhi. It is expected to cut down commuting time as it will bypass three major intersections at Ashok Vihar, Shalimar Bagh and Keshav Puram. 
 
Addressing the gathering, Kejriwal said: "The credit for this elevated road from Azadpur to Shalimar Bagh goes to Shiela Dikshit. The foundation stone was laid in June 2013 during Dikshit’s tenure.
 
“The sanctioned cost for the project was Rs.247 crore but it was completed at an actual cost of Rs.142 crore by Delhi's PWD (Public Works Department). 
 
"It is unbelievable,” Kejriwal went on. “This can happen only in an honest government.”
 
Naidu also praised Delhi government’s PWD for completing the project at a lesser cost.
 
“It is for the first time I came to know that a project of Rs.250 crore was completed in Rs.150 crore. I congratulate the Delhi government’s PWD department for this achievement,” Naidu said.
 
The project was delayed for months as it was pending before the National Green Tribunal, which did not give permission to cut trees. 
 
The PWD had sought permission to cut around 1,200 trees but was permitted to fell around 700 trees. 
 
Dikshit was Delhi's chief minister for 15 long years before Kejriwal's Aam Aadmi Party (AAP) ousted her government in December 2013, with Kejriwal himself defeating Dikshit. But Kejriwal resigned after just 49 days.
 
The AAP again took power in Delhi in February this year with a full majority.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Leslie Menezes

1 year ago

PWD engineers completing any project at lower than budgeted cost !!!! Questions How was the budgeting done?? Is the present cost also a overrun or a real saving ??? What about the other projects by the PWD. Are they "similarly" budgeted??. One can have an idea how Congress governments budget projects - almost at twice the cost. Any assurance similar patterns are not followed now. After all the engineers and bureaucrats are the same

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