Readings: Realty delays, Sector weakness, FII bye-bye
- Business Standard: Rs 8,000 crore premium realty projects face delay
. . . the construction cost for large commercial projects was Rs 2,000 per square foot, on average . . . construction cost is growing 20 per cent every year and the developers are carrying a compounded interest burden of 30 to 40 per cent after three years.
By 2008-end, Mumbai and its suburbs will add 15.4 million square feet of office space.
“In Mumbai, developers need to obtain 56 approvals from environment and forest department, pollution control board and others. It takes over a year to get these approvals,”
- Hindu Business Line: Six sectoral indices hit year lows
. . . six key sectoral indices hit their 52-week lows on Monday as the Sensex fell another 2 per cent. The BSE PSU Index , Bankex, Realty, Auto, Power and Capital Goods were the indices that recorded their new 52-week lows on Monday.
. . . defensive sectors such as BSE Health Care and FMCG are trading close to their yearly highs. Market men say that these sectors are not affected much by an increase in interest rates or even the rising crude oil prices.
In May and June, institutions (FIIs +DIIs) have net sold equities worth Rs 11,472 crore. That tops the Rs 9,525 crore net sales by them in January. Despite high cash positions and new fund-offer collections, local institutions have not been shopping hard in the summer sale.
. . . even the long-term fund managers among the FIIs are pruning their India exposures faced with redemption pressures. India dedicated funds saw redemptions of $205 million during the week ending June 18, 2008.
The rupee has been consistently at just below 43, seems to be held back by RBI intervention.
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