Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Realtors welcome RBI latest stance, expect relief initiatives in next announcement

Posted On: 2021-05-07 05:42:19 (Time Zone: UTC)

India reported 382,315 new Covid-19 cases on Wednesday. According to the MoHFW, the total caseload now stands at 20,665,148. India has added 2,649,808 infections to its count in the last seven days alone. There are currently 3.49 million active cases in the country. It was appearing that the second wave is threatening economic recovery. However, the RBI on Wednesday showed confidence that it need not deviate from its projections. The real estate sector welcomed the stance taken by the Apex bank as the RBI Governor Shaktikanta Das said, "Restoring livelihoods has become an imperative".

Dhruv Agarwala, Group CEO,, and, said, "The Reserve Bank of India has reiterated its commitment to mitigating the damage due to coronavirus by providing support to many quarters, including a Rs 50,000 crore Term Liquidity Facility, to ease access to emergency health services. The real estate sector was anticipating steps such as assistance in loan restructuring and a moratorium to help it get through these difficult times. In its next announcement, the RBI should take into consideration the needs of the real estate sector."

The RBI also announced steps to shield small and medium enterprises, as well as individual borrowers, from the negative effects of the country's extreme second wave of COVID-19. Considering that the resurgence of the pandemic had made these categories of borrowers most vulnerable, Sarthak Gaur, Director, Gaurs Group, said, "The country's current condition must be balanced with calibrated, sequenced, and well-timed policy steps. The Reserve Bank of India (RBI) has taken measures to restore investor faith. The relief provided to vulnerable category borrowers, such as individuals, small businesses, and MSMEs, is much-needed, as localized restrictions have disrupted them. The improvement in this segment would lead to an improvement in the mall segment, which has been in a difficult situation in some cases due to losses faced by the retailers. Overall, the first round of announcements was fair and balanced, addressing the most pressing issues."

Realtors feel that the steps taken by the RBI will amplify the positive sentiment seen in Q1 2021. Amit Modi, Director ABA CORP & President (Elect), CREDAI Western UP, said, "After the first wave subsided in 2020, the economy was in a better place, but the situation has dramatically changed after the second wave hit the country. The RBI eased lending and restructuring norms for all stakeholders, particularly those smaller businesses and MSMEs that have been impacted by the second wave. We are confident that it will amplify the positive sentiment seen in Q1 2021 across all sectors, including the real estate market, which outperformed expectations with a significant increase in sales."

In his address, the RBI Governor expressed the Apex bank's resolve to do everything at its command to 'save human lives and restore livelihoods through all means possible'. However, the real estate sector was expecting some relief from the Apex bank, which did not come this time. Uddhav Poddar, MD, Bhumika Group, said, "We welcome that MSMEs and small borrowers have got a one-time loan structuring that would be beneficial in the current scenario, since they are the engines of the economy, but this should be extended to all businesses, especially the real estate sector. However, immediate relief by way of EMI deferment and a loan moratorium for all businesses is urgently required as there is a lockdown in nearly all parts of India, and there is hardly any economic activity taking place."

The RBI has maintained that the second wave was debilitating, but it was "not insurmountable". Mr Das also asserted "We do not expect any broad deviations in our projections". Taking positive from the stance taken by the RBI, Akshay Taneja, MD, TDI Infratech, said, "The absence of a moratorium announcement will be viewed positively by the market, implying that the situation is not dire enough to warrant another moratorium. The RBI's actions are unlikely to give the market a big boost, but they are likely to provide downside support and boost morale. However, the pandemic has had a wide impact on the industry. A rollout of wider relief initiatives aimed at mid-corporate and large borrowers, and industries heavily affected by the pandemic, such as real estate, hospitality, would have been beneficial."

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:

CESC Q4FY21 Results Review Report - Loss decline, strong CF make valuation attractive - HDFC Securities

White Goods & Durables - Analysis of pressure cooker market: TTK Prestige is key beneficiary - ICICI Securities

CESC - Good earnings in a challenging environment - ICICI Securities

Somany Ceramics - Walking the talk - ICICI Securities

DB Corp - Rise in newsprint price adds to risk - ICICI Securities

CEAT - Market share ambitions remain strong - ICICI Securities

Consumer Staples & Discretionary - Worm's world view #32: Conversations with paint dealers regarding price hikes - ICICI Securities

Oil & Gas - Oil, gas & spot LNG surge to bring gains for GAIL & OIL - ICICI Securities

Asset Management Companies - Positive trends to support earnings - ICICI Securities

Q4FY21 Result Update - Lemon Tree Hotels - ICICI Direct

Q4FY21 Company Update - Globus Spirits - ICICI Direct

Q4FY21 Result Update - DB Corp - ICICI Direct

Q4FY21 Result Update - Somany Ceramics - ICICI Direct

KEC International: Company Update - Building on diversification - HDFC Securities

LIC Housing Finance - Q4 FY21 Result Update - YES Securities

Entertainment Network Ltd - Beating on solutions business - ICICI Securities

Asahi India Glass - Operating leverage, product mix aid margins - ICICI Securities

Whirlpool of India - Market leading revenue growth - ICICI Securities

Lemon Tree Hotels - Wait for recovery gets longer - ICICI Securities

LIC Housing Finance - Stupendous growth momentum; needs to shore up provisioning and capital buffer - ICICI Securities

Quant Pick - Bank of Baroda - ICICI Direct

Company Update - Amara Raja Batteries - Investor Event Outcome - ICICI Direct

Q4FY21 Result Update - Bhel - ICICI Direct

Q4FY21 Company Update - NRB Bearings - ICICI Direct

CESC - Q4FY21 First Cut - ICICI Direct

Q4FY21 Result Update - Entertainment Network India - ICICI Direct

LIC Housing Finance Results Review Report - Balance sheet beefs up; P&L to stay soft - HDFC Securities

Jubilant FoodWorks 4QFY21 Results Review Report - Missing excitement; recovery priced in - HDFC Securities

BFSI Sector Update - MFI Consultation Paper Takeaways - Incrementally positive for NBFC-MFIs - HDFC Securities

Q4FY21 Result Update - JK Cement - ICICI Direct

Q4FY21 Result Update - Minda Industries - ICICI Direct

Stock Tales - Indo Count Industries - ICICI Direct

IPO Review - Krishna Institute of Medical Sciences Ltd - ICICI Direct

Q4FY21 Company Update - Greenply Industries - ICICI Direct

IPO Review - Dodla Dairy Ltd - ICICI Direct

Lemon Tree Hotels - Q4FY21 First Cut - ICICI Direct

Jubilant Foodworks - Q4FY21 investor call takeaways - YES Securities

Greenply Industries Ltd - Q4 FY21 Result Update - YES Securities

Whirlpool of India Ltd - Q4 FY21 Result Update - YES Securities

New India Assurance Report - CoRs disappoint yet again - HDFC Securities

Maintain BUY on Kajaria Ceramics - Performance shines through; outlook bright - HDFC Securities

Retain ADD on Deccan Cement - Volume strong; high other expense dents margin - HDFC Securities

Reiterate ADD on NHPC - Lower generation impacts earnings - HDFC Securities

Maintain BUY on JK Cement - Robust volume and utilisation - HDFC Securities

Maintain BUY on DLF - Gaining traction - HDFC Securities

Maintain BUY on Capacite Infraprojects - Marginal miss - HDFC Securities

DLF Ltd - Q4 FY21 Result Update - YES Securities

Greenply Industries Ltd - Q4FY21 first cut - YES Securities

Coal India - Coal makes a comeback - ICICI Securities

Kajaria Ceramics - Q4FY21 beat largely priced in - ICICI Securities

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

disclaimer copyright © 2005 - 2020