New real estate-focused funds trying to raise capital are finding it difficult to convince investors, especially those abroad, to part with their money because of the prolonged uncertainty in the domestic economy and risks inherent in the sector.
Investors prefer handing over their money to funds that have experience in completing a full cycle from raising capital to selling their investments, although even established funds are faced with similar challenges, say analysts.
Read more: Mint
DLF’s Gurgaon project hits court roadblock
Realty major DLF’s new premium high-rise residential project The Crest, off Golf Course Road in Gurgaon, is in a legal tussle.
The Punjab and Haryana high court on Wednesday stayed the project’s construction, sale and marketing on a petition filed by the resident welfare association (RWA) of DLF Park Place – a group-housing society.
The RWA alleged that The Crest has encroached on its condominium property.
The ex-parte order was passed by the division bench of justices SK Mittal and NK Sanghi.
Read more: Hindustan Times
Indian economy probably grew 4.8 per cent Jan-March: Poll
Indian economic growth probably nudged up in the three months to March from a near four-year low the previous quarter, a Reuters poll showed on Tuesday, suggesting a gradual turnaround from a prolonged slowdown.
The median consensus of 37 economists showed gross domestic product expanded 4.8 percent year-on-year, better than the 4.5 percent growth in the previous three months, which was the lowest in fifteen quarters.
“It is only a marginal improvement with much of the support from a slight recovery in manufacturing sector and better trade data in this quarter (January-March) compared to the previous quarter,” said Kruti Shah, an economist at Karvy stock broking.
If the consensus proves correct it would mean India’s full year growth for 2012/13 (April/March) was worse than an official preliminary estimate given in February that pointed to decade low growth of 5.0 percent.
Read more: The Economic Times
How to benefit as interest rates fall
After a long wait, it is finally here – a downturn in interest rates. The Reserve Bank of India (RBI), after raising its policy rates from 4.75 per cent to 8.5 per cent over 2010-11, began to take its foot off the pedal last year. Since April 2012, rates have declined from 8.5 to 7.25 per cent. But if you expected these rate cuts to significantly help borrowers and trim deposit rates, it hasn’t played out exactly that way.
These trends in interest rates have a two-fold impact on retail investors.
Limited EMI savings
Higher policy rates translate into higher interest rates on all the loans that borrowers take on a floating rate basis. Therefore, when rates move up, there is a spike in equated monthly instalments (EMIs) for home loans.
In July 2010 the base rate for SBI, the rate to which all its lending rates are linked, stood at 7.5 per cent. A floating rate home loan taken then, with a mark up of 1 per cent, would have carried an interest rate of 8.5 per cent. With RBI raising repo rates, SBI’s base rate went up to 10 per cent by August 2011 and the rate on your home loan would have moved up to 11 per cent. Let us say you took a home loan for Rs 40 lakh for 15 years. The steep increase in rates would have meant a Rs 6,074 spike in your EMI from Rs 39,390 to Rs 45,460, a 15 per cent increase.
Read more: Business Line
Japan to sell bullet train technology to India: Report
India is seen set to use Japanese bullet train technology for a high-speed connection between Mumbai and Ahmedabad, a report said Wednesday, the centrepiece of a huge package of infrastructure sales.
Prime Minister Shinzo Abe and Manmohan Singh will issue a joint statement at a summit later in the day giving details on a feasibility study for the railway, a newspaper said.
Abe is to offer a sweetener in the form of 101.7 billion yen ($1.0 billion) in yen-based loans to India, the newspaper said, as Tokyo fights off competition from nations such as France, which has the TGV high-speed rail network.
Japan under Abe is embarking on a renewed drive to sell roads, rail and power stations to emerging nations, including India, in a bid to offset lassitude in the domestic economy that has left it treading water.
Read more: The Economic Times
Top five Indian IT services firms grow 13.3% in 2012
The top five Indian IT services providers combinely grew 13.3% to reach $34.3 million in revenues in 2012 the period when the overall IT services industry grew just 2%, research and advisory firm Gartner said on Tuesday.
This however is lower than the 21.8% growth reported by them in 2011.
The Gartner report includes Cognizant since the company predominantly has an India-based delivery model and its management is largely India-based.
According to the report, even though the growth rate of India-based providers has been slowing for some years, this trend was more pronounced in 2012.
However, “this growth rate is still quite high compared with the IT services worldwide, or the growth of the top 10 global IT services providers”, it added.
The report said the top five Indian IT services companies have improved their market share from 3.5% in 2011 to 3.7% in 2012. Nasdaq-headquartered Cognizant which overtook Infosys in terms of annual revenues in 2012 improved its global ranking to 23 in 2012 from 28 in 2011.
Read more: Business Standard
US targets to send 15000 American students to India every year for higher studies
The United States is looking to triple the number of Americans going to India for higher studies in the next five years.
“That is still far from our goal of 15,000 in five years,” Tara Sonenshine, the Under Secretary of State for Public Diplomacy and Public Affairs, told the visiting Human Resources and Development Minister, Pallam Raju, in a roundtable interaction earlier this week.
Currently, while more than 100,000 Indian students visit US to study every year, the number of American students who studied in India in 2011-2012 was a mere 4,300 and far less than those going to China for studies.
“We have to look at what are the obstacles to getting American students to go so that we can boost interest and participation,” Sonenshine said.
Robert Blake, the Assistant Secretary of State for South and Central Asia had earlier said that the US government was working with the Indian government to streamline the education visa processes, which have been repeatedly identified as a key reason for why so few American students go to India.
Source: Press Trust of India