Property demand: Chennai, Gurgaon hot, Mumbai cold

The real estate market is sluggish in Mumbai, but, looking at the absorption rate, residential property is selling like hotcakes in other cities like Bangalore, Chennai and Gurgaon.

Ireo Skyon

Ireo Skyon, located in Sector 60 Gurgaon

Gurgaon:The residential absorption rate in Gurgaon rose 11 per cent in 2011. This is largely due to a high launch activity in the market. Property prices in the market rose 17 per cent during the year. Unsold inventory in the market remains at healthy nine months of average absorption. This means the demand for homes in Gurgaon is much higher than Mumbai.

Chennai: The residential absorption rate in Chennai rose 37 per cent in 2011. High launch activity has resulted in increased unsold inventory in the market. Unsold inventory rose to15 from 10 months early last year. Average property prices rose 8 per cent to 30 per cent in pockets from Anna Nagar to Rajeev Gandhi Salai.

Read more at NDTV

India Business

Bain Capital plans to invest up to $800 million in India in 4 years

Private equity firm Bain Capital LLC today said it will make up to four investments in India that could entail a total of about $800 million saying the country is an “extraordinarily attractive investment destination”.

“In the next four years we will make around three to four investments in India with the size of one investment varying between $50 million to $250 million,” Bain Capital LLC Managing Director Paul Edgerley told reporters on the sidelines of Hero Mindmine Summit here.

When asked about the total investment that the company could make in India in the next four years, he said: “In a year, we will on an average invest $150 to $200 million in India.”

Read more at Economic Times

24 states raise power tariffs in 18 months

Faced with deteriorating health of power distribution companies, as many as 24 states have revised their electricity tariffs in the past 18 months, according to a report.

Low tariff regime has been mainly blamed for the poor financial conditions of power distribution companies (discoms), a scenario that has raised concerns of default in the financial system. Brokerage firm Motilal Oswal said in a recent report said that discoms have set the ball rolling in favor of disciplined efforts to manage cost, file tariff petition and tariff hikes.

Read more at The Times of India

Loan rates won’t fall soon: Bankers

For home loan borrowers the wait for a lending rate cut is set to get longer unless the Reserve Bank of India takes drastic measures. Lenders have informed RBI that they would find it difficult to bring down interest rates soon because of a surge in cost of funds. Latest RBI data shows that year on- year deposit growth has slowed to 13% as on March 23 even as loans unexpectedly grew 17% forcing banks to hike term deposit rates.

On Wednesday, chief executives of large banks met with RBI deputy governor as part of a customary meet ahead of the central bank’s policy announcement on April 17. In the meeting , banks have told RBI that it needs to cut policy rates as well as infuse liquidity through a cut in the cash reserve ratio requirement to bring down rates and stimulate growth. Most bankers told RBI that lending rates will not come in April. Speaking to newspersons after the meet, SBI chairman Pratip Chaudhuri said that if banks brought down lending rates now their margins would be hit.

Read more at The Times of India

Two Indians selected as Yale 2012 World Fellows

Two Indians are among 16 people selected by the prestigious Yale University in 2012 as its World Fellows, bringing the total number of fellows from India to 11 since the program started in 2002.

“Two of the 16 Yale World Fellows for the year 2012 are from India,” the university said in a statement. Ayush Chauhan co-founder and managing director, Quicksand and Ruchi Yadav, senior program officer, The Hunger Project are the two 2012 Yale World Fellows.

Read more at the The Times of India

India still a global growth haven: Atul Singh

Atul Singh, managing director & head (wealth management) at Merrill Lynch Wealth Management, India, tells Puneet Wadhwa the worst is over on the industrial slowdown. Edited excerpts:

It has been a topsy-turvy FY12 for global equity markets. Given the macroeconomic headwinds, how do you see FY13?

Global growth stood at 3.8 per cent in CY2011 and is forecast to decline to 3.6 per cent in 2012, with the euro zone expected to slip into a mild recession. Developed economies remain vulnerable, with crippled sectors, and regions and central banks are expected to provide additional support in the year ahead.

A further upside in the global equity markets would depend on whether stronger economic growth can be translated into higher earnings. Markets remain focused on slowing Chinese and European growth. As a result, we expect the US to deliver relatively better performance but await greater earnings clarity before adding new positions.

Read more at Business Standard

International Business News

US unemployment claims hit 4-year low

The number of people seeking U.S. unemployment benefits fell to a four-year low last week, as layoffs slow and the job market strengthens.

The Labor Department says weekly unemployment benefit applications dropped 6,000 to a seasonally adjusted 357,000. That’s the fewest since April 2008. The four-week average, a less volatile measure, fell to 361,750, also the lowest in four years. The average has fallen nearly 13 percent in the past six months.

Read more at The Times of India

Facebook e-commerce: The next big thing?

A group of e-commerce start-ups, backed by some of the tech world’s most pedigreed financiers, are betting that Facebook Inc can become an e-commerce powerhouse to rival Amazon.com Inc and eBay Inc.

As the world’s largest social network hurtles toward a $5 billion initial public offering, it will come under more pressure from Wall Street to find new sources of profit growth and reduce its reliance on advertising, which accounted for 85 percent of its 2011 revenue.

Read more at The Times of India

Ultimate call sign of super-rich: Boeing, Airbus planes that can house Rolls Royces, horses

In early March, Boeing’s biggest jet, the 747-8 Intercontinental, took off from Paine Field near here, its gleaming white livery shrouded in secrecy.

But the newest version of the airliner, which can carry 460 passengers, was not destined for a commercial airline. This particular model, the 747-VIP, was headed for a private customer in the Middle East believed to be the emir of Qatar.

Read more at Economic Times

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