Hit me baby...
Did FM succeed in hitting realty?
The Finance Minister had blamed the realty beast for driving inflation; & had subsequently increased interest rates. Now comes recent evidence that it worked, though the beast, as our
B&E Sector feature comments, lives on!
Flush with foreign funds, while the industry has grown overall at 30% & emerged as one of the backbones of Indian economy, the sector’s realty index at BSE has remained low. And this despite the fact that a real estate major like DLF has amazingly already crossed the Rs.1 trillion mark in m-cap. While the Sensex & Nifty were thundering up to historical highs, the realty index morbidly slumped by 1.31% last week. Nine out of eleven stocks that constitute the index, marked declines, with the only exceptions being Indiabulls Real Estates & Phoenix Mills. But the question is, in the days to come, will realty stocks experience a further slowdown, as what with interest rates & disclosure norms continuing to act as dampeners. Satish Kannav of Arihant Capital Market, differs. Speaking to B&E, he asserted, “Inflation & interest rates are not going to cause much of impact. Contribution of real estate firms to the economy is going to be tremendous & the sector will see faster growth in Tier II & III cities.” Agrees Amit Saxena, CEO, Planman Financial, “Inflation is controlled, & interest rates won’t be hiked now; so realty can take a positive reality check now.” Index or no index, one doesn’t need a soothsayer to know that the realty sector lives to fight another day.
The Finance Minister had blamed the realty beast for driving inflation; & had subsequently increased interest rates. Now comes recent evidence that it worked, though the beast, as our
B&E Sector feature comments, lives on!Flush with foreign funds, while the industry has grown overall at 30% & emerged as one of the backbones of Indian economy, the sector’s realty index at BSE has remained low. And this despite the fact that a real estate major like DLF has amazingly already crossed the Rs.1 trillion mark in m-cap. While the Sensex & Nifty were thundering up to historical highs, the realty index morbidly slumped by 1.31% last week. Nine out of eleven stocks that constitute the index, marked declines, with the only exceptions being Indiabulls Real Estates & Phoenix Mills. But the question is, in the days to come, will realty stocks experience a further slowdown, as what with interest rates & disclosure norms continuing to act as dampeners. Satish Kannav of Arihant Capital Market, differs. Speaking to B&E, he asserted, “Inflation & interest rates are not going to cause much of impact. Contribution of real estate firms to the economy is going to be tremendous & the sector will see faster growth in Tier II & III cities.” Agrees Amit Saxena, CEO, Planman Financial, “Inflation is controlled, & interest rates won’t be hiked now; so realty can take a positive reality check now.” Index or no index, one doesn’t need a soothsayer to know that the realty sector lives to fight another day.
For Complete IIPM Article, Click here
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
posted by Editorial at
12:43 PM
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