Rupee declines 4 paise against dollar in early trade

MUMBAI: The rupee depreciated by 4 paise to 64.08 against the dollar in early trade due to month-end dollar demand from importers. 

www.sevagiri.com

Besides, a weak opening in the domestic equity market weighed on the rupee, dealers said. A weakness in the US dollar against major world currencies in global market however limited rupee fall. 

The rupee had lost 27 paise to close at more than 5-week low of 64.04 per dollar in the precious session on Friday following persistent demand for the US currency from banks and imMeanwhile, the benchmark BSE Sensex fell below the 28,000-mark to trade at 27,875.31, down by 237 points, or 0.84 per cent over previous close.

porters. 

Source - TOI

Sensex, nifty down 1% each on P-Note, MAT concerns

MUMBAI: In a knee jerk reaction to probable implications of government's move on participatory notes (P-Notes) to curb black money and also its stand relating to minimum alternate tax (MAT) on FIIs, sensex and nifty each fell over 1% in early trade on Monday. Banks and companies with high FII holding, like ICICI Bank and Axis Bank led the slide along with stocks like L&T, Tata Motors and Tata Steel. 

www.sevagiri.com

On Friday evening, the SIT against black money recommended that Sebi should take steps to curb flow of black money into the stock market, including various measures relating to the origin and use of P-Notes, a form of offshore derivatives contract that foreign players invest in which are relatively opaque relating to their actual ownership. For long it has been suspected that P-Notes are used to route black money into the stock market. Dealers said market will remain cautious and wait for further action from the government and Sebi on usage of P-Notes by FIIs. 

Dalal Street is also waiting to see what stand the government takes on MAT before the Supreme Court when a case relating to its applicability comes up for hearing on August 4. 

Last week Shah Committee presented its report to the government on the applicability of MAT. The committee was set up after the income tax department last year issued notices to several FIIs for payment of MAT on their gains from stock trading for the past few years. In case the government presses ahead with MAT on FIIs' operations in India, market may see a sharp correction, dealers said. 

At 1005 IST, sensex was down 304 points at 27,809 while nifty was down 88 points at 8,433.

Source - TOI

Rupee tumbles to over 5-week low at 64.04 vs dollar

MUMBAI: Extending its losses for the third day, the rupee today fell by another 27 paise to end at more than 5-week low of 64.04 per dollar on persistent demand for the US currency from banks and importers amid higher greenback against major rivals overseas. 

www.sevagiri.com

Persistent fall in equity market also affected the rupee value against the dollar, a forex dealer said. 

The rupee resumed sharply lower at 63.99 per dollar as against the last closing level of 63.77 at the Interbank Foreign Exchangemarket and dropped further to 64.06 to close at more than 5-week low of 64.04, showing a loss of 27 paise or 0.42 per cent. 

The rupee had last closed above the 64 level on June 17, 2015, when it ended at 64.12. 

The rupee has lost 49 paise or 0.77 per cent in the three days. 

It moved in a range of 63.87-64.06 per dollar during the day. 

The dollar index, which tracks the greenback against a basket of major currencies, was trading up by 0.19 per cent. 

Oil prices rebounded in early trade after settling at their lowest in the previous session as worries over the demand outlook and continued oversupply weighed on the market. 

Several currencies in the Asian Pacific region dropped to fresh multi-year lows today, while the dollar advanced against its major rivals. 

"The weaker commodity price is helping to boost the dollar's value against emerging market currencies," said Marshall Gittler, head of global foreign-exchange strategy, at Iron FX, in a note tdoay. 

Meanwhile, the benchmark 30-share index Sensex ended lower by 258.53 points or 0.91 per cent.

Source - TOI 

Sensex slides 259 points; extends losses on muted earnings

MUMBAI: Falling for the second straight day, the benchmark BSE Sensex today slipped 258.53 points to end at nearly two-week low of 28,112.31 on muted earning figures reported by companies so far and weak global cues. 

www.sevagiri.com

Moreover, weakness in rupee, which fell 23 paise against dollar (intra-day) too hit sentiments, brokers said. 

Asian markets ended lower after a survey showed China's manufacturing activity tumbled to 15-month lows in July. 

The 30-share BSE barometer fell by 258.53 points or 0.91 per cent to 28,112.31, with all the sectoral indices, except consumer durables and FMCG, ending in negative zone. 

The gauge has now lost 392.62 points in two days. 

The NSE Nifty ended 68.25 points or 0.79 per cent down at 8,521.55 after shuttling between 8,513.50 and 8,589.15 intra-day. 

On a weekly basis, the Sensex and Nifty ended lower by 351 points (1.23 per cent) and 88.30 points (1.02 per cent), respectively. 

Sentiments were also dampened on investors' worries over the fate of key reforms bills including GST, with Parliament's proceedings in the first week of the Monsoon Session completely washed out, they said. 

ICICI Bank suffered the most among Sensex stocks by falling 3.96 per cent to Rs 300.50 ahead of earnings, followed by Wipro down 3.73 per cent to Rs 566.45 after the company's June quarter earnings failed to impress investors. 

Other prominent losers were Lupin, Tata Motors, GAIL, SBI, Vedanta, M&M, Tata Steel, BHEL, L&T, Coal India, Infosys, Axis Bank, Maruti Suzuki, ITC, Dr Reddy's and ONGC. 

Sectorwise, BSE capital goods index suffered the most by falling 1.57 per cent, followed by realty 1.32 per cent. 

Broader markets also depicted a weak trend with the BSE mid-cap index falling 0.61 per cent and small-cap by 0.58 per cent. 

Out of 30-share Sensex stocks, 21 ended lower. 

Meanwhile, foreign investors bought shares worth Rs 185.42 crore yesterday as per provisional data. 

Globally, a rise in European stocks at opening on better corporate earnings and a weak trend at the other Asian markets also influenced the trading sentiments.


Source - TOI 

JLL India asks home buyers to avoid Noida Extension, Greater Faridabad

NEW DELHI: Property consultant JLL India has advised home buyers to avoid certain locations, including Noida Extension, in Delhi-NCR real estate market due to delays in projects delivery, oversupply, speculation and lack of infrastructure.

www.sevagiri.com

JLL India has declared Noida Extension, Greater Faridabad and Delhi's L & J zones as 'high-caution' areas.

"The National Capital Region (NCR) has some locations that buyers are best advised to avoid. Various issues like delays in delivery , oversupply, speculation and infrastructure deficit have been plaguing these markets, rendering them unsuitable for first-time home purchase," JLL India CEO - Operations & International Director Santhosh Kumar said.

On Noida Extension, which is part of Greater Noida, Kumar said the primary issue impacting this location's viability as an investment destination is the oversupply of housing units.

"With 1.5-2 lakh units slated to hit this market, prices are unlikely to appreciate much. Many land acquisition issues involving local farmers have sullied the market here over the last few years. The ensuing delays and litigations, resulting higher compensation being paid to farmers for their land, has also decreased overall affordability," he said.

The government's decision to compensate developers for their losses by allotting them higher floor area ratio (FAR) would result in far greater development congestion than was originally envisaged for this area, Kumar said, adding that delays in completion of projects being another concern.

"Despite its disproportionate housing supply, Noida Extension has lost much of its earlier attractiveness," he said.

JLL said that congestion will turn this area into an uninspiring concrete jungle even though metro and a wide road connecting Noida Extension to Noida are on anvil.

Source - Economic Times

Fullerton India receives housing finance licence from NHB

Mumbai: Non-banking finance company Fullerton India on Thursday announced the receipt of housing finance licence from National Housing Bank.

www.sevagiri.com

The NBFC said it has set up a new housing finance company — Fullerton India Home Finance Company Ltd — as its fully-owned subsidiary.

Fullerton India Home Finance will largely cater to affordable housing in the lower and middle-income segments through Fullerton India’s branch network.

The new company will provide customers access to a diversified loan portfolio across loan against property, mortgage loans and home loans. The average ticket size of these loans will be in the range of Rs. 6-7 lakh.

Source : Business Line

'Housing for all' project to give Indian economy a much needed boost

MUMBAI: The Housing for All (HFA) project will give the Indian economy a much needed boost. However, its success will depend on the ramping up of the existing urban infrastructure, fast tracking of approval processes and also targeting the actual beneficiary, says India Ratings and Research (Ind-Ra).
www.sevagiri.com

The direct benefit of HFA to the economy is estimated to be Rs 15 trillion in a seven-year timeframe (FY16-FY22). "Funding of the investment of Rs 15 trillion through public-private partnerships and ramping up the supply of raw materials for construction namely steel and cement are big challenges for the execution of the HFA scheme," it said.

Municipal services such as supplying piped water, sewerage, sanitation and municipal solid waste management are also far from being equipped to take on a project of this magnitude in the next seven years.

"Apart from providing impetus to the construction sector, the scheme will increase employment opportunities and help grow the services sector. Sectors supplying crucial inputs to the construction sector, such as cement, iron and steel, will also grow. The growth of other sectors will depend on the strength of the forward and backward linkages of the construction sector with the rest of the economy," said Ind-Ra.

As the output of sectors supplying inputs to the construction sector increases, it will increase the demand for goods and services in the economy due to higher income generation. The economic impact of the scheme will also be felt at the state level. The biggest beneficiary of this will be Uttar Pradesh, followed by Maharashtra and West Bengal. These are the top three states in terms of housing shortages and increased construction activities will help these states' economies to grow.

The scheme to provide 20 million houses in three phases over FY16-FY22 has a central grant component (Rs 100,000 per slum household) going to the state government, and central assistance (Rs 150,000 other households) is likely to go directly to households. Also, the central government will provide interest subvention to households at 6.5% for loans up to a 15-year tenor through two nodal agencies - Housing and Urban Development Corporation Limited and National Housing Bank.

Source : Toi