Real estate stocks do well December 30, 2008
Posted by dhirendra1972 in Choppy Trades, Interest Rate, Profit, Rate Cuts, Realty Gainer, Realty Stocks, Shareholders, Sharp Rise.Tags: Gain, Real Estate, Shares, Stocks, Trades
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Good morning friends. I’m sure that after reading this article all shareholders will be happy. This is the much awaiting fact that shareholders want to know. There should be always a hope.
Shares of real estate companies were up, but gave back a portion of early gains, as investors booked profits in choppy trades. Analysts said the spurts of strength in realty stocks in recent days can be attributed to hopes of further cuts in interest rates.
“Most of the strength in selective stocks is due to hopes of interest rates going down. Since last few days, we have witnessed a series of rate cuts by banks due to pressure from the government. At this point of time, concern about lending to real estate sector is still weighing on majority of institutional investors,” says a real estate analyst.
At 12:30 PM, BSE Realty was at 2,237.35 points, up 1.4% from the previous close, but off the day’s high of 2,291.21.HDIL, Indiabulls, Unitech and Parsvanath, which were up over 2%, were leading the pack of realty gainers.
Investors are hoping that the cut in interest rates would spur demand for property, but analysts said that is not enough. It is believed that realty players should cut prices significantly to revive demand from prospective clients, which will also ease the burden of these companies.
Expectations of a sustained strength in property prices had led to builders buying lands at exorbitant prices through borrowed money. But, with sales drying up following the sharp rise in interest rates, these highly-leveraged companies are under great deal of pressure.
ref: theeconomictimes
Realty stocks in demand on SBI, HDFC Bank rate cuts December 22, 2008
Posted by dhirendra1972 in Cut Rate, Deposit Rate, Interest Rate, Lending Rates, Realty Stocks, Sector Banks.Tags: Banks, Interest, Loans, Rates, Real Estate, Stocks
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Realty stocks resumed their northward journey on Monday after interest rate cuts by the country’s largest banks over the weekend raising hopes that demand for home loans from customers will rise.
SBI, on Saturday, announced cuts in prime lending rates by 0.75 percentage point and deposit rates by upto one percentage point effective January 1, 2009. After the rate cuts, SBI home loans of up to Rs 30 lakh, for tenures between 15 and 25 years, will be available at 9.5%, loans of Rs 30 lakh to Rs 75 lakh at 10.75% and those above Rs 75 lakh at 11%.
Interestingly, for 5-year home loans up to Rs 30 lakh the rate will come down to 9%, which would be lower than even the concessional rate of 9.25% offered by public sector banks.
The rate cuts announced by SBI are bound to lead to similar cuts by others in the home loan business, which is good news not just for prospective home buyers, but also the beleaguered real estate sector.
Meanwhile, HDFC Bank on Friday reduced its home loan lending rates by 0.5 percent or 50 bps. The new lending rates of the bank on loans less than Rs 20 lakh will be 10.25 percent while on amount above Rs 20 lakh, rates will 11.25 percent. The new rates will be applicable with immediate effect but existing customers will get benefit from January 1.
HDFC’s closest competitor in home loans ICICI Bank had earlier in this month reduced interest rates by 150 basis points to 11.50 percent for fresh loans of up to Rs 20 lakh.
At 10:45 am, the BSE Realty Index climbed as much as 6 per cent with Unitech, up 7.57 per cent, fronting the rally. Among other realty stocks in the limelight, Indiabulls Realty rose 5.01 per cent, Parsvnath Developers climbed 4.09 per cent, HDIL was up 4.06 per cent and DLF climbed 3.66 per cent.
Ref: theeconomictimes
Inflation dips as hopes of rate cut rise November 21, 2008
Posted by dhirendra1972 in Commercial Banks, Inflation Rate, Interest Rate, Liquidity, Money Banks, Repo Rate, Single Digit Level.Tags: Banks, Capital, Corporations, Expeort, Inflation
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The inflation rate eased to a nearly six-year low of 8.9 per cent for the week ended November 8, from 8.98 per cent for the week before raising hopes of fresh round of interest rate cut over the next few days. It could bring cheer to corporations grappling with options to meet capital requirements for planned and current projects.
Inflation slipped to single-digit levels after 21 weeks and hitting 12.91 per cent in August. Earlier this week, the Reserve Bank of India (RBI) Governor D Subbarao met Finance Minister P Chidambaram to discuss steps to make more funds available to the corporations.
The RBI has cut the cash reserve ratio – proportion of money banks have to park with the central bank – by 3.5 percentage points to 5.5 per cent releasing about Rs 1,40,000 crore into the system. The repo rate – the rate at which banks borrow from the RBI – has also been cut by 1.5 percentage points to 7.5 per cent.
“Given the increasing downside risks to the growth momentum coupled with tight liquidity conditions, we expect RBI to cut CRR and repo rate by 50 basis points each in near future,” said Kaushal Sampat, chief operating officer of data services and consulting firm Dun and Bradstreet. On Monday, Prime Minister Manmohan Singh conferred for more than one-and-a-half hours with key macroeconomic managers, including Chidambaram, Commerce and Industry Minister Kamal Nath, Subbarao and Planning Commission Deputy Chairperson Montek Singh Ahluwalia and other senior officials on the current economic downturn and shrinking demand for India’s exports.
India’s exports are projected to decline by 15 per cent in October this fiscal, for the first time in any month in five years, and likely to miss the $200 billion target for 2008-09.
