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7th Pay Commission approved by Cabinet; Real estate sector may get a boost, Bengaluru, Pune among best bets June 29, 2016:  Realty experts feel that the 7th Pay Commission will have a positive impact on the sector and provide opportunity to middle class government employee to own a house with increased disposable income. Photo : Phoenix Real Estate Wednesday proved to be an important day for central government employees as the Union Cabinet cleared the implementations of 7th Pay Commission recommendations, which is expected to benefit to over 1 crore government employees and pensioners. Realty experts feel that the 7th Pay Commission will have a positive impact on the sector and provide opportunity to middle class government employees to own a house with the increased disposable income. Hike in salary indicates an increased spending power and better economic growth. The government has approved rise in salaries and pension for public sector employees. The 7th Pay Com...

Retail real estate back in favour with PE investors   BENGALURU / MUMBAI,  Jun 29, 2016 : India's retail real estate sector received $149 million or about Rs 1,000 crore of private equity investment in the first five months of 2016, according to a report by JLL India. This accounted for 8% of the total PE investment in India during the period, beating expectations of most analysts and marking a turnaround after the lack of investor interest since 2008 baring the singular exception of 2012.  To Expand Please Click on it.. With PE investment in the segment exceeding that in 2007, some experts said it might well cross the previous high seen in 2008.  "India's growing reputation across the globe as an investment destination thanks to Prime Minister Narendra Modi's jaunts, coupled with the slowdown in China's economy, has led to an upswing in private equity investment flowing into the country," said Shobhit Agarwal, managing director, capital market...

Real estate developers pitch for easier lending norms in meeting with RBI Realtor lobby CREDAI also reiterates its demand to allow banks to fund land purchase Mumbai,  Wed, Jun 29 2016 : In a closed door meeting with Reserve Bank of India (RBI) governor Raghuram Rajan on Tuesday, realtor lobby Confederation of Real Estate Developers’ Associations of India (CREDAI) urged the central bank to ease lending norms for real estate projects, while reiterating its demand to allow banks to fund land purchase, according to two people aware of the development. The hour-long meeting was attended by a few members of CREDAI, including chairman Irfan Razack and president-elect Jaxay Shah. CREDAI declined to comment on the meeting, saying it was a private and confidential meeting with the governor. Some of the key recommendations made by CREDAI to the governor include allowing an increase in bank exposure to the real estate sector, reducing risk weightage as well as allowing ext...

Real estate stocks surge; Unitech rallies 8% Mumbai: June 29, 2016: Real Estate stocks ended higher on back of higher volumes. DLF Ltd ended at Rs. 143.95, up by Rs. 10.45 or 7.83% from its previous closing of Rs. 133.5 on the BSE. The scrip opened at Rs. 139.1 and touched a high and low of Rs. 147.7 and Rs. 139.1 respectively. A total of 47348340(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 23813.08 crore. The BSE group 'A' stock of face value Rs. 2 touched a 52 week high of Rs. 142.9 on 09-Oct-2015 and a 52 week low of Rs. 72.5 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 141.2 and Rs. 126.7 respectively. The promoters holding in the company stood at 74.96 % while Institutions and Non-Institutions held 18.07 % and 6.96 % respectively. The stock traded above its 50 DMA. Unitech Ltd ended at Rs. 6.32, up by Rs. 0.46 or 7.85% from its previous closing of Rs. 5.86 on the BSE. The...

UK voted for Brexit – but is there a way back? Several scenarios could see the vote overturned, involving either a Labour or Tory prime minister. But all are speculative Wednesday 29 June 2016: The British public have voted to leave the EU in an advisory referendum – but there have been voices in business, diplomacy, politics and European polities desperately asking if the issue can be revisited. Is that feasible? The short answer is yes, just about, but many forces would have to align. How prepared was the government? The referendum, for instance, has thrown up big constitutional questions for Britain. Oliver Letwin, who was appointed by David Cameron, the outgoing prime minister, to oversee the process of withdrawal, is now at the helm of an expanded European secretariat at the Cabinet Office. But it is clear that very little preparatory work has been done. One of the first questions he will face is the future role of the British parliament in Brexit. The Br...

Today's Recommendations (i)  Rotla India Ltd seems to have formed a temporary bottom around Rs.63. I ts consolidated net profit has grown 64.4 per cent to Rs 59.21 crore for the quarter ended March 31, 2016.  The company had posted a net profit of Rs 36.01 crore in the same quarter last year.  However, Rolta's total income from operations dipped to Rs.846.04 crore in the reported quarter as against Rs 946.14 crore in the year-ago period.  The stock is slowly moving up after the company gave progress report on the future defence project. Rolta India Ltd had informed the stock exchanges that it has done significant expenses “on a very prestigious and time-bound defence project”, which required considerable ongoing investment.  Rolta management is diligently working on addressing the overall situation in a comprehensive manner in consultation with its bankers and strategic advisers. The aim is to arrive at an acceptable solution in the in...

Winning Strokes: Think Different Unitech Ltd (Rs.5.86), continued its upward journey even yesterday, as the stock made an intra-day high of Rs.5.91 in the BSE before closing at Rs.5.86; with a whooping volume of 170.01 lakhs. According to my close sources, the company is taking various measures to bring it back to track. The stock is expected to double in the next 30-45 days. The Wikipedia says: "Unitech Limited is India's second largest real estate investment company, and has recently claimed to be the largest real estate builder in the country".  Moreover, there are hopes that the capital market regulator, the SEBI will consider proposals for relaxed norms for the REITs and an easier set of compliance rules for foreign fund managers keen to relocate to India. The scrip of Jaiprakash Associates Ltd (J P Associates Ltd) today moved to Rs.7.65, before cooling down at Rs.7.51, in the BSE. The stock would have closed near Rs.7.57-7.59 ranges, however, late selling pu...

Winning Strokes: Think Different Unitech Ltd (Rs.5.86), continued its upward journey even yesterday, as the stock made an intra-day high of Rs.5.91 in the BSE before closing at Rs.5.86; with a whooping volume of 170.01 lakhs. According to my close sources, the company is taking various measures to bring it back to track. The stock is expected to double in the next 30-45 days. The Wikipedia says: "Unitech Limited is India's second largest real estate investment company, and has recently claimed to be the largest real estate builder in the country". The scrip of Jaiprakash Associates Ltd (J P Associates Ltd) today moved to Rs.7.65, before cooling down at Rs.7.51, in the BSE. The stock would have closed near Rs.7.57-7.59 ranges, however, late selling pulled the price down.  The total loans of Jaiprakash Associates, the real estate and infrastructure company, stand at Rs.58,250 crore against a market capitalisation of less than Rs.2,000 crore. The RBI recently came up...

Today's Calls:  1. Buy Axis Bank Ltd at Rs.515, T: Rs.540, SL: Rs.507. 2. Buy Jaiprakash Associates Ltd (J P Associates Ltd) at Rs.7.58, T: Rs.10.5-12.40, SL: Rs.6.7 (on closing basis).   3. Buy JSW Energy Ltd at Rs.80.40, T: Rs.91-97, SL: Rs.76. The Economic Times, wrote today:  The government is mulling an additional Rs 25,000 crore allocation to roads, railways and power sectors over and above the allocation made to them in the Union Budget, potentially providing a mid-year boost to public spending.  All three ministries — road transport and highways, railways and power — are currently in advanced talks with the finance ministry to secure additional allocation.  This is going to push up the demands for the stocks in the Infrastructure, Banking and Power Sectors. Those who are already holding the shares of J P Associates Ltd should further accumulate, on intra-day declines.  Moreover, both Unitech Ltd (Rs.5.85) and J P Associates Ltd ...

Today's Calls:  1. Buy Axis Bank Ltd at Rs.515, T: Rs.540, SL: Rs.507. 2. Buy Jaiprakash Associates Ltd (J P Associates Ltd) at Rs.7.58, T: Rs.10.5-12.40, SL: Rs.6.7 (on closing basis).   3. Buy JSW Energy Ltd at Rs.80.40, T: Rs.91-97, SL: Rs.76. The Economic Times, wrote today:  The government is mulling an additional Rs 25,000 crore allocation to roads, railways and power sectors over and above the allocation made to them in the Union Budget, potentially providing a mid-year boost to public spending.  All three ministries — road transport and highways, railways and power — are currently in advanced talks with the finance ministry to secure additional allocation.  This is going to push up the demands for the stocks in the Infrastructure, Banking and Power Sectors. Those who are already holding the shares of J P Associates Ltd should further accumulate, on intra-day declines.  Moreover, both Unitech Ltd (Rs.5.85) and J P Associates Ltd (Rs...

Axis Bank Ltd: Buy CMP: Rs.515 Edelweiss maintains a buy rating on Axis Bank Ltd with a 12-month target price of Rs.585.  The brokerage house says, even in a tough scenario, the bank will deliver a return on equity of 16-17%. The strong operating metrics and strengthened liability franchise also lend comfort. Meanwhile, Axis Bank has sought approval of shareholders to raise Rs.35,000 crore through multiple instruments including green bonds and from overseas markets. The approval would be sought at Axis Bank’s 22nd Annual General Meeting of shareholders on 22 July. The funds, which would be within the overall borrowing limits of the bank, will be raised in one or more tranches on a private placement basis.  The Reserve Bank of India (RBI) on 31 May 2016, notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 62% of the paid-up capital of Axis Bank, from existing 49% under the Portfolio Investment S...

Reliance Power Eyes Rs 714 Crore From Tilaiya Procurers [ Editor : Buy the shares of Reliance Power Ltd at the CMP of Rs.48.80, for a short term target of Rs.53, SL: Rs.47.60. Reliance Power reported 15.8% rise in consolidated net profit at Rs..20.16 crore for the fourth quarter ended March 31, 2015-16 on the back of higher power generation. It had posted net profit of Rs.276.47 crore in the January-March quarter of 2014-15. The promoters holding in the company stood at 74.98 % while Institutions and Non-Institutions held 10.48 % and 14.21 % respectively. At Rs.48.80, t he stock traded above its 200 DSMA. ] New Delhi.  June 27, 2016:  After pulling out of Tilaiya UMPP on a host of issues, Reliance Power is looking to secure a total of Rs 714 crore as bank guarantees and compensation from 18 procurers of the electricity project. Of this, Rs 600 crore will be in the form of bank guarantees the procurers had offered to buy electricity and another Rs 114 crore as ...

“Bracksies”: how Brexit could wind up not actually happening... Please Click on the Photo to Expand June 25, 2016: Fun fact: Brexit, the United Kingdom’s narrow vote to exit the European Union, is not actually legally binding. The Prime Minister, be it David Cameron (who has resigned but could remain in office until October) or his successor (almost certainly pro-Brexit former London mayor Boris Johnson) can simply decide to ignore the result.  In practice, it’s hard to see that happening; the voters have spoken, and politicians are loath to overturn the express will of the people. But Cameron still hasn’t done the one thing he needs to do to ensure that the UK actually exits: invoke Article 50 of the Treaty on European Union. And until he does, there are still ways he could keep Brexit from happening. What is Article 50? Here is the meat of Article 50, which establishes the procedures for a member state to withdraw from the EU: 1. Any Member State may de...