SumanSpeaks: The Information Super Highway

The Indian Real Estate Industry : Pros and Cons Photo : Business Today It was another tough year for the real estate builders – with sales of residential housing units remaining weak in the 1st and 2nd quarters of 2017. Overall, the year 2017 has been a mixed bag – as far as the performance of real estate stocks are concerned. Real estate has been the most affected sector post NDA government's decision to implement the process of demonetization of around 86% of Indian currency. On the eve of demonetization nearly 87% of transactions in India were in cash, meaning the country is more cash driven than Russia, Brazil and Mexico. This rocked the boat of the cash driven Real Estate sector.  This year saw the effects of the implementation of demonetization, with land sales reaching stagnation due to more involvement of cash transactions. But this somewhat reduced the land prices making the end products more affordable to the consumers.  By April 2017, when the mark...

WINNING STROKES Today was a day for the shareholders of  Housing Development & Infrastructure Ltd (HDIL) , as the stock which was recommended yesterday around Rs.59 to the Premium Members and also in this blog, almost around the same price rocked the boat of the bears as it made an intra-day high of Rs.66.70. The share closed the day at Rs.65.80 in  the NSE, up 11.34% but is still more than 80% lower than its seven-year-old price. Its all-time high price level was Rs.1,113 which it hit on January 8, 2008.  According to some media reports, HDIL had land reserves of 200.47 million quarter feet as of September 30, 2016. It boasts of being the owner of largest land bank in the Mumbai metropolitan region, which it can capitalize to cut its debt. JP Morgan noted HDIL’s balance sheet cost of land is at 50-70%  lower than market value. It expects margins of the company to be above 30% even under affordable housing price points. After today's performance and recen...

Pre-Session : Market may open on a flat note 29-Dec-17: Domestic stocks may open on a flat note on last trading day of calendar year 2017. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 3 points at the opening bell. Among macro economic data, India's infrastructure output data for the month of November 2017 will be released today, 29 December 2017. Infrastructure output in India increased 4.7% year-on-year in October of 2017, following a downwardly revised 4.7% rise in the previous month. Overseas, Asian stocks were trading mixed following the moderately higher close seen stateside. US stocks rose yesterday, 28 December 2017 amid thinned-out trading between holidays. Back home, key benchmark indices, led by index pivotals State Bank of India and HDFC, logged modest losses in volatile trade yesterday, 28 December 2017. The Sensex fell 63.78 points or 0.19% to settle at 33,848.03, its lowest closing level since 21...

Market Pulse Key benchmark indices traded in a small range near the flat line in afternoon trade. Trading was lackluster and rangebound around the flat line so far during the session. Key indices opened higher and traded with small gains in early trade. Stocks traded in a small range around the flat line later during the session. Trading may remain volatile during the latter part of the day as traders roll over positions in the futures & options (F&O) segment from the near month December 2017 series to January 2018 series. The December 2017 derivatives contracts expire today, 28 December 2017. Among secondary indices, the S&P BSE Mid-Cap index rose 0.23%. The S&P BSE Small-Cap index gained 0.55%. Both these indices outperformed the Sensex. The breadth, indicating the overall health of the market, was positive. On the BSE, 1,506 shares rose and 1,111 shares fell. A total of 179 shares were unchanged. Shares of power generation and power distribution...

Pre-Session : Market may open on a positive note 27-Dec-17: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 24 points at the opening bell tracking firm Asian stocks. Overseas, Asian markets were mixed in early trade, with most markets shrugging off overnight declines seen on Wall Street. Meanwhile, investors in the region await the release of industrial profit numbers out of China. US stocks closed lower in light volume trade yesterday, 26 December 2017 as shares of Apple tumbled, offsetting gains in energy stocks as oil prices hit their highest in more than two years. Back home, trading after a long weekend resumed on a buoyant note as key benchmark indices, led by Reliance Industries and Bharti Airtel, logged modest gains yesterday, 26 December 2017. The Sensex rose 70.31 points or 0.21% to settle at 34,010.61, its record closing high. Foreign portfolio investors (FPIs) sold shares worth a net Rs 44.07 crore yester...

Winning Strokes Source : The Business Standard Yesterday, was the day of Anil Ambani as most of the stocks from this group performed excellently.  Reliance Anil Dhirubhai Ambani (ADA) Group shares surged after witnessing recent volatility in stocks. Reliance Communications (RCom) (up 30.78%), Reliance Infrastructure (up 2.41%), Reliance Nippon Life Asset Management (up 1.16%), Reliance Capital (up 7.02%), Reliance Home Finance (up 0.45%), Reliance Naval and Engineering (up 5.63%) and Reliance Power (up 3.85%) gained. Yesterday, the internet got inundated with the news that RCom plans to settle on buyers for assets including its spectrum, telecom towers, optical fibre and real estate, with all transactions to close between January and March.   Reliance Communications Ltd’s planned sale of its wireless business assets by the end of March would be the latest instance of upheaval that has swept through the telecom industry since the entry of Reliance Jio Infocomm Ltd. ...

Sensex crosses 34,000-mark 26-Dec-17:  Trading after a long weekend resumed on a buoyant note as key benchmark indices, led by Reliance Industries and Bharti Airtel, logged modest gains. The barometer index, the S&P BSE Sensex, rose 70.31 points or 0.21% to settle at 34,010.61. The Nifty 50 index gained 38.50 points or 0.37% to settle at 10,531.50. Most of the appreciation was collected in late trading. However, the boost was sufficient to take the Sensex beyond a record 34,000-point mark and the Nifty to cross the 10,500 milestone for the first time in their history. Key indices gained for the second straight day. Stocks edged higher early in the session. Trading was characterized by a bout of volatility. Key indices traded on a flat note in morning trade after alternately moving above and below the flat line. Stocks slipped into the negative zone and hit fresh intraday low in mid morning. Indices continued to trade with small losses till afternoon trade but firmed up ...

MBL Infrastructure Ltd : Will bidding by Promoters Trigger an Open Offer ? CMP: Rs.27.10 Photo : Slideshare The Shares of MBL Infrastructure Ltd has been buzzing since the last few days. It hit the upper circuit limit of 5% on Thursday after the Economic Times reported that the firm could become India’s first roadbuilder to achieve a successful insolvency resolution on about Rs.1,700 crore of outstanding loans. The news assumes significance, from the point that the Lakhotias (promoters) have built the company from a scratch and mere two bad years have put a spanner in their efforts.  According that report the promoter Anjanee Kumar Lakhotia had agreed to infuse in about Rs.120 crore into the business which is nearly five times more than the capital he had promised initially. The repayment period on the loans is also proposed to be reduced to about 9.5 years from 12, the ET reported.  “Creditors seemed receptive about the revised resolution plan, and they have...

Market Pulse Key indices continued to hover between gains and losses near the flat line in early afternoon trade amid mixed Asian cues. The BSE Sensex is now trading flat at 33,776.4 up marginally 0.90 points, while Nifty is now seen at 10,450.70 up 6.50 points or 0.06%. The market opened higher and swung between gains and losses near the flat line in a lackluster session of trade so far. The S&P BSE Mid-Cap index rose 0.6%. The S&P BSE Small-Cap index gained 0.81%. Both these indices outperformed the Sensex. The market breadth indicating health of the market was strong. On the BSE, 1,569 shares rose and 880 shares fell. A total of 175 shares were unchanged. Most realty stocks extended recent gains. D B Realty (up 20%), Unitech (up 15.25%), NBCC (up 0.3%), Godrej Properties (up 0.13%), Housing Development & Infrastructure (HDIL) (up 0.63%), and Oberoi Realty (up 0.07%) edged higher. DLF (down 0.22%), Sobha (down 0.83%), and Indiabulls Real Estate (down...

Market Pulse The stock market continued to trade with small gains in afternoon trade. The BSE Sensex is now trading at 33,878.69 up 41.95 points or  0.12%, while the NSE Nifty is now seen at 10,473.55 up 10.35 points or 0.10%. The market swung between gains and losses near the flat line in early trade. The Sensex and Nifty, both, hit record high at the onset of the session. Stocks soon slipped into the red and traded with small losses in morning trade. Indices turned positive in mid-morning trade and traded with small gains so far. Among secondary indices, the S&P BSE Mid-Cap index rose 0.47%. The S&P BSE Small-Cap index gained 1%. Both these indices outperformed the Sensex. The breadth, indicating the overall health of the market, was strong. On the BSE, 1,652 shares rose and 893 shares fell. A total of 174 shares were unchanged. IT stocks were mixed. Wipro (up 0.79%), Infosys (up 0.74%) and HCL Technologies (up 0.29%) gained. Persistent Systems (do...

Market Pulse Key indices were trading with modest gains in morning trade as firmness in global stocks supported gains on the bourses. At 10:20 IST, the barometer index, the S&P BSE Sensex, gained 98.95 points or 0.29% at 33,700.63. The Nifty 50 index rose 32.20 points or 0.31% at 10,420.95. The S&P BSE Mid-Cap index rose 0.79%. The S&P BSE Small-Cap index gained 1.1%. Both these indices outperformed the Sensex. The broad market depicted strength. There were more than three gainers for every loser on BSE. 1,668 shares rose and 476 shares fell. A total of 104 shares were unchanged. Auto stocks extended recent gains. Mahindra & Mahindra (M&M) (up 0.86%), Ashok Leyland (up 0.61%), Maruti Suzuki India (up 0.94%), Eicher Motors (up 2.07%), Bajaj Auto (up 0.92%), Hero MotoCorp (up 0.91%), Tata Motors (up 1.53%) and TVS Motor Company (up 0.66%) gained. Telecom stocks were mixed. Reliance Communications (up 0.51%), Tata Teleservices (Maharashtra) (up 3.92...