Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Realtors expected more from RBI MPC

Posted On: 2021-04-07 04:37:54 (Time Zone: Arizona, USA)

The RBI has maintained its accommodative stance until it sees an appropriate time to drive economic growth without jeopardizing its key goal of taming inflation. With the recent increase in Covid 19 incidents, the Apex bank is faced with the challenging task of balancing inflationary pressures to avoid a rise in borrowing costs. To keep inflationary pressures in check and sustain financial stability, it is expected that the central bank to pursue policy normalization in the second half of FY22. While it is understandable that the repo rate remains unchanged, the real estate sector's need for special steps cannot be overlooked.

Ashok Gupta, CMD, Ajnara India, adds, "The repo rate remains unchanged at 4% which is the sixth time in a row, but we can still expect some support from the Union government and RBI in their upcoming policy meetings to help the industry recover. Its accommodative stance is positive for the real estate sector, which has witnessed some positive movement in demand for the past few months. We can hope that banks will lend strongly to support the sector, leading to the crucial sector in Indian Economy to attract borrowers, as earlier several banks have already provided some exemptions on transaction fees and other related costs."

Praising the unchanged repo rate step, Vijay Verma, CEO, Sunworld Group, said, "It will continue to give the required liquidity cushion to the sector, where leverage plays an important role. The accommodative stance of the RBI repo rate move to keep it unchanged was much expected because earlier, there were no such announcements made, especially for the real estate sector in the last Union Budget. With this move of RBI, a great relief to the sector in the new financial year is likely to prevail."

Buyers are returning to the sector after realizing the value of real estate assets backed by historically low EMIs, but developers, too, need some assistance to speed up the development process. "A sector that contributes significantly to the GDP requires assistance, and developers are expressing their concerns for the government to pay attention to their demands," says Dhiraj Bora, Head Marketing & Communication, Paramount Group.

Because of the global pandemic crisis, the world is suffering one of the worst economic crises, and real estate, among other industries, is feeling the pinch. Harvinder Singh Sikka, MD, Sikka Group, says, "Rates on repurchase agreements are now at record lows, benefiting consumers. However, real estate is undergoing a difficult era, and we hope that the RBI will come out with some direct measures that would help the sector prosper."

Realtors unanimously say that they expected that the RBI would keep the repo rate unchanged. Throwing light on the RBI MPC decision Uddhav Poddar, MD, Bhumika Group, says, "The Apex Bank has kept its repo rate unchanged, which was in line with expectations. it's clear that the apex bank is taking an accommodative stance. The RBI has played a pro-active role and has taken multiple measures for various industries and sectors in recent months. While the real estate sector needs several measures, and we expect a push from RBI to the banks to disburse loans to the sector".

The need was the influx of funds that could help the developers complete the projects on time and gain the trust of buyers, resulting in the sector's revival. "Last-mile financing is needed in real estate, and unpaid loans are a roadblock; one-time loan restructuring would force banks to accept developers' collateral conditions, allowing developers to complete stalled/delayed projects. The situation in 2008 emerged as a result of the Lehman Brothers crisis, and at the time, loan restructuring assisted in reviving the market, which saw property capital appreciation in 2010 after a two-year lull. We are now in a similar situation, and the sector needs government assistance," says Dhiraj Jain, Director, Mahagun Group.

Kushagr Ansal, Director, Ansal Housing, adds, "We expect the new lending support of Rs 50,000 crore to Nabard, NHB, and Sidbi to have a positive effect on the liquidity situation. We must realize that the sector needs assistance in coping with unfinished projects to close the demand-supply gap. Since people realized the value of real estate properties, demand is at an all-time high, and the developer community needs the government's support to ensure that everybody has a home."

Calling for the need to announce direct packages for the sector, Sagar Saxena, Project Head, Spectrum Metro, says, "It is time for the government to pay heed to the sector's long-standing demand for industry status. We foresee the government taking direct sector-specific steps rather than delivering packages with limited effects on real estate."

Concludes Vikas Garg, Deputy MD, MRG World, "While the government has taken some measures in recent months to help the sector, such as introducing stress funds and stimulus packages, further changes are required to help the sector grow. Without sufficient government funding for developers, it would be difficult to retain real estate demand."

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Nestle India 1QCY21 results - Views by Himanshu Nayyar, Lead Analyst - Institutional Equities, YES SECURITIES

ICICI Prudential Life Insurance - Q4FY21 Result Update - YES Securities

Power: Sector Thematic - Reforms essential for renaissance - HDFC Securities

ACC 1QCY21 Results Review Report - Strong margins! - HDFC Securities

ICICI Prudential Life 4QFY21 Results Review Report - Strong micro; challenging macro - HDFC Securities

ACC Ltd - Q1CY21 Result Update - YES Securities

ICICI Prudential Life Insurance - Business momentum upwards; valuations remain attractive - ICICI Securities

Multiplex - Business disruption again - learnings and better cash position to help - ICICI Securities

ACC - Strong show led by lower costs - ICICI Securities

Brookfield India REIT - Building a strong edifice - ICICI Securities

Q4FY21 Result Preview - Oil & Gas - ICICI Direct

Q1CY21 Result Update - ACC Ltd - ICICI Direct

ACC Q1CY21 Results - Views by YES SECURITIES

Comments on Rupee from industry experts - April 19, 2021

Autos & Logistics 4QFY21 Results Preview - HDFC Securities

ADD on Mindtree - Gaining momentum - HDFC Securities

ICICI Lombard 4QFY21 Result Review - HDFC Securities

Mindtree - Q4FY21 Result Update - YES Securities

ICICI Lombard - Q4FY21 Result Update - YES Securities

HDFC Bank - Q4FY21 Result Update - YES Securities

Mindtree - Subtle downgrade in outlook! - ICICI Securities

SBI Cards and Payment Services - Play on monetisable payments growth - ICICI Securities

ICICI Lombard General Insurance Company - Cyclical recovery can protract; fundamentals remain intact - ICICI Securities

HDFC Bank - Resilience and consistency displayed to its core - ICICI Securities

Home First Finance Company - Tech-led affordable housing play at affordable valuations - ICICI Securities

Q4FY21 Result Update - Wipro Ltd - ICICI Direct

ICICI Direct - Covid Recovery Pulse - E-Way bill generation ends March 2021 on strong note...

Derivatives Strategy - Positional Future - ICICI Direct

Gladiator Stocks - Escorts - ICICI Direct

Q4FY21 Company Update - Tata Metaliks - ICICI Direct

Q4FY21 Result Update - MindTree Ltd - ICICI Direct

Q4FY21 Result Update - HDFC Bank - ICICI Direct

ICICI Direct Derivatives Weekly View (April 16): Sustainability above 14700 may trigger fresh uptrend...

Market Outlook - Technical - By Dharmesh Shah, Head - Technical, ICICIdirect

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on Monsoon outlook

ADD on Wipro - Improving growth visibility - HDFC Securities

Building Materials 4QFY21 Results Preview - Strong demand to support robust margin - HDFC Securities

Consumer Discretionary 4QFY21 Results Preview - Bargains few and far between - HDFC Securities

Consumer Durables 4QFY21 Results Preview - HDFC Securities

Wipro - Q4FY21 Result Update - YES Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on March 2021 Monthly Trade Balance

Wipro - Q4FY21 Result Update - Lofty multiples leave limited margin of safety - ICICI Securities

FMCG & Alco Bev 4QFY21 Results Preview - HDFC Securities

Maintain BUY on Infosys - Q4FY21 Results Review - Buy the dip - HDFC Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on March 2021 WPI Data released today

Non-leveraged financials 4QFY21 Results Preview - HDFC Securities

Infosys - A reality check! - ICICI Securities

Infosys - Q4FY21 Result Update - YES Securities

Polymer price tracker - PVC prices continue to rise - April 15, 2021 - ICICI Securities

Bharti Airtel - Restructuring aimed at digital biz, AGR-tax efficiency - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020