11:40 pm Interview:
Pirojsha Godrej, MD & CEO, Godrej Properties in an interview to CNBC-TV18, said the response for the second phase of its prestigious ‘The Trees’ project has been as overwhelming as the phase one.
According to him, the phase II sales numbers so far have been good. He also expects average realisations for phase II to be at least 10 percent higher than those of phase I.
Although the overall residential market has been weak for the sector, the company has found takers for its projects, says Godjrej. The weakness was especially seen in NCR and Ahmedabad compared to Mumbai, he added. However, commercial real estate has been the pocket of strength for the sector, says Godrej.
11:20 am IDBI’s stake sale: IDBI Bank shares rallied 6 percent intraday as a media report suggested that the government has started process for dilution in the bank.
“The International Finance Corporation (IFC – subsidiary of World Bank), one of the investors interested in buying a stake in IDBI Bank, has finished inspection of the assets and liabilities of the state-run lender,” a media report said quoting unnamed sources.
The report added that UK’s development finance institution CDC Group Plc and US private equity firm TPG Capital are also in talks with the government to buy a stake. According to a report, quantum of stake sold to a strategic investor will likely be 15 percent or higher.
Finance Minister Arun Jaitley in his Union Budget speech in February said, “The process of transformation of IDBI Bank has already started. Government will take it forward and also consider the option of reducing its stake to below 50 percent.”
The Government of India currently holds 80.16 percent equity stake in the bank.
Also read – Still a buy on dips market; PSU banks’ valuations good: HDFC Sec
11:00 am Market Check
The market continues to rise with support from banks, capital goods and FMCG stocks. The Sensex is up 166.11 points or 0.7 percent at 25118.85, and the Nifty is up 51.70 points or 0.7 percent at 7656.05. About 1343 shares have advanced, 774 shares declined, and 134 shares are unchanged.
ITC, SBI, Bharti Airtel, L&T and Hindalco are top gainers while Lupin, Dr Reddy’s Labs, Hero MotoCorp, BHEL and Coal India are losers in the Sensex.
Oil prices dipped slightly as fresh oversupply concerns spurred by an increase in operational US rigs bridled a recent rally. This follows a week of gains that lifted US benchmark West Texas Intermediate (WTI) above USD 40 for the first time since December, buoyed by a sharp drop in the dollar, making oil more affordable, and revived optimism that producers would strike a deal to freeze output.
Spot gold eased but found support from a weaker dollar as the US and European central banks kept alive the prospect of cheaper capital for longer.
As central bank rhetoric turns more dovish, investors will search for further hints of easing in a week with few data releases to indicate whether years of loose monetary policy are having any material effect.