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Sunday, May 06, 2007
R Sreesankar of IL&FS Investsmart believe that next quarter could be even worst for real estate sector.
Sreesankar told CNBC-TV18, “Sugar, I think it is not sweet at all; it doesn’t look sweet also. As per at least my view it is going to be tough time for sugar companies to come back into the black in the near-term and from an investment perspective at least it is four-five quarters away, at least four quarter that means more than a year.”
He further added, “From real estate perspective, yes, the impact of interest rates hike, plus every possible company is probably coming out with an IPO / kind of valuations, so the valuations that everybody is expecting seeing the kind of demand or valuations in the market as very high and you travel around you find that the supply of apartments are extremely on the high side. So to my mind it’s only a matter of time before you are going to see this increased supply of property going to impact the prices. It need not happen everywhere, it probably will happen in pockets where you are going to see large amount of supply coming in at one go. In many number of places, even probably if you take in Mumbai, you may not see fresh supply of apartments coming up. So in those areas you may have see prices still remaining firm but I cannot say that generally across India, so I am bit cautious out there and I am not very optimistic about the high prices that we pay for many of these real estate stocks. I wouldn’t like to look for investment in the sector because I still believe that next quarter could be even worst.”
SOURCE : MONEYCONTROL.COM
Sreesankar told CNBC-TV18, “Sugar, I think it is not sweet at all; it doesn’t look sweet also. As per at least my view it is going to be tough time for sugar companies to come back into the black in the near-term and from an investment perspective at least it is four-five quarters away, at least four quarter that means more than a year.”
He further added, “From real estate perspective, yes, the impact of interest rates hike, plus every possible company is probably coming out with an IPO / kind of valuations, so the valuations that everybody is expecting seeing the kind of demand or valuations in the market as very high and you travel around you find that the supply of apartments are extremely on the high side. So to my mind it’s only a matter of time before you are going to see this increased supply of property going to impact the prices. It need not happen everywhere, it probably will happen in pockets where you are going to see large amount of supply coming in at one go. In many number of places, even probably if you take in Mumbai, you may not see fresh supply of apartments coming up. So in those areas you may have see prices still remaining firm but I cannot say that generally across India, so I am bit cautious out there and I am not very optimistic about the high prices that we pay for many of these real estate stocks. I wouldn’t like to look for investment in the sector because I still believe that next quarter could be even worst.”
SOURCE : MONEYCONTROL.COM
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