STOCK BUZZ

major difference in the forecloseure procedure of Indian Banks and US Banks, which limit the foreclosure in India. In US, banks issue loans with the property as a mortgage. And the loan is non recourse in nature. So the banks has the power to collect the dues only from the mortgaged property and not from the borrower. So for example, home buyer has taken a loan worth $2mln for the house that was worth $2.1mln at the time of issuance. Now suppose the outstanding amount is $1.8mln where as worth of the underlying house has been decreased to $1.6mln. So if the home owner does not pay the dues, bank will foreclose the property and sell it for $1.6mln. US Banks can not ask the borrower to pay the difference of $0.2mln. Where as in India, loans are recoursable. So, in above example, An Indian borrower is required to pay the difference of $0.2mln to bank. When loan is non recourse, it makes a sense for the buyer not to pay the due of $1.8mln and foreclose the property and buy the similar prop...

Real Estate market in India : Our Economic Analyst has issued warning for all those who invested in Real Estate properties in Metro Cities. This is your last chance to sell real estate property and book your profit. Real Estate will take not be as good as it was 6 to 8 months back..

This is continuation of Indian Real estate posted on April 30 2008 ( Indian Real Estate Part 1 ). The latest data shows the median US home price is $200,000. This is about Rs. 84 lakhs. Note that these US homes are independent houses, not apartments and the surrounding infrastructure is excellent (roads, power, water). Now compare this with the inflated apartment prices here, with no roads, water or power and tell me, who will buy apartments here?Secondly the present GDP growth in India may be around 8% and the retail (not WPI) inflation may be 12% (just wait till the high diesel prices seep through the economy). This means that far from growing the Indian economy is SHRINKING (GDP -Inflation).Now analyse this economy and the real estate prices based on this and draw your own conclusions.Cheers!.

Everyone dreams of owning a piece of land in IT city, but that land might just be harder to come by if the realtor's lobby finds place at Vidhana Sodha. It's a business that made landowners in Bangalore millionaires overnight. As the city turned from pensioner's paradise to IT hub, land became the most sought after commodity here. But over the last few years, this land has become concentrated in the hands of a few and the worrying factor is that the landlords are now looking to become policymakers. Kupendra Reddy, a contestant from Bommanahalli, and one of the richest candidates in these elections, holds around 240 acres of land in Bangalore's prestigious HSR layout, where prices have crossed Rs 15 crore an acre. "I come from infrastructure brand. I know infrastructure very well, how to develop cities, roads, how to put satellite townships, provide schools, hospitals, etc.," he defends. . And the one thing that rings common to all these public facilities is ...

If high prices have been holding you from buying your dream house all these years, here’s something to cheer about. In the first quarter of this year, there has been a 15-20% price correction in markets across the country, especially in the residential segment. In fact, in many markets, the level of transactions have gone down drastically, which has resulted in this dip. This is also because residential capital values in some micro markets in the metros have shown a negative growth in the last one quarter. After tracking capital values in metros such as Mumbai, Chennai, Bangalore as well as Pune and the National Capital Region (NCR), the result was that either there has been a fall in prices of residential values or they have not increased in the last three months. In fact, places like Gurgaon have seen a dip of 15%, while the plot rates have come down by 20% in Noida. In Greater Noida, the plots which were selling at Rs 55,000-60,000 are now available for Rs 40,000 to Rs 45,000. In In...

Real Estate loans in India : Is this real Bubble? I’ve been waiting for some official confirmation of the bursting of the real estate bubble in India. Although bursting of the bubble (or even the existence of it) is still just hearsay, it is widely accepted that Indian real estate market is stuttering (to put it the best way I can). This article in the New York Times puts the depreciation in New Delhi and surrounding areas at 20%. I thought this is a good time to do a followup on my first post on Indian real estate. In the midst of the bursting housing bubble in US, UK, Spain, Ireland ..etc., sub-prime has become a common word (it also was nominated as the word of the year). There are several articles, blog entries and web sites detailing the life cycle of a mortgage loan in these countries, especially in the US, talking about how these loans are converted to Mortgage Backed Securities (MBS) and packaged as Credit Default Obligations (CDO) and sold to hedge funds, central banks, privat...

Buy for Feb 6th 2008 Buy GMR Infra >188.1,192, 199 Stop Loss 185.9 Buy Polaris Software >92.5,94.5,99 Stop Loss 88.84.

Buy for Feb 1st ( GMR Infra ) Buy GMR Infra >174.1,181,191 Stop Loss 168.9 And here is the rest of it.

As i mentioned earlier this is a portfolio stock 30 to 50 % returns yoy is assured. Stock price should have been 200+ ,its getting out of the retail investors who go it through ipo . I dont see its going down with huge volumes 146 is the support at downside. last time it bounced back from that level ,in days to come it will trade in the range of 175 + if some one is serious about investment of 2 to 3years horizon This is the infra stock to hold on its trading at a PE of 8 where as roman torat is trading with PE multiple of 23 ,and the only stock with returns of 15% after PAT where as industry average is 6 to 9% with all these positive factors if some one do not want to invest ,then its not a prudent decision for good stock market investor . Ask the analysts if you are not sure certainly they would recommend one news from company would take the price up ,think about buying it when its available at a attractive price Down side from here is less than 10 rupees so a safe bet