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Softbpo Global Services to issue equity shares
Softbpo Global Services‘ at its board meeting held on June 03, 2011, has decided issue of 37,50,000 equity shares of Rs10 each for cash at a price of Rs55 per share to the shareholders of the company on right basis in the ratio of 25 new equity shares of Rs10 each for every existing 1 equity share held as on record date.
Softbpo Global Services‘ at its board meeting held on June 03, 2011, has decided issue of 37,50,000 equity shares of Rs10 each for cash at a price of Rs55 per share to the shareholders of the company on right basis in the ratio of 25 new equity shares of Rs10 each for every existing 1 equity share held as on record date.
PTC India sanctions Rs500 cr debt
PTC India Financial Services (PFS) has sanctioned debt aggregating Rs500 crore in its board meeting held on May 25, 2011, to 3 power companies. The projects includes one hydro project promoted by an Indian company in Nepal, one thermal project with captive coal mines, and another company engaged in executing the EPC contracts for power transmission lines.
The loan sanctioned to the above mentioned generation projects will help additional capacity generation of 720 MW with this, the effective debt sanction of PFS as on May 31, 2011 aggregates more than Rs3500 crore.
Weak global cues drag Sensex 115 points lower
After attaining their highest closing level in more than 4 weeks yesterday, the Indian indices fell into the bears grip in today’s trade on heightened worries about the global economic outlook. The markets reacted to the global weakness and traded in a consolidation mode with losses. The news of probe into ADAG group on 2G scam spooked the markets in last hour of trade.
The sell-off in bank, metal, realty, auto, power, Anil Dhirubhai Ambani Group companies’ shares along with heavyweights ICICI Bank, Tata Motors, Reliance Communications and Reliance Infrastructure dragged the markets. However, the markets got some support from fast moving consumer goods (FMCG) and consumer goods (CD) companies’ shares along with HUL, Bajaj Auto, ITC and RIL, which limited losses
Anil Dhirubhai Ambani Group companies’ shares took huge beating in last hour of trade, especially after the news that CBI Trial Court will pass order on plea to probe Anil Ambani today. Reliance Communications and Reliance Infrastructure lost over 4%. Reliance Power and Reliance Capital fell 2.7% each.
The Sensex began the session 183 points lower at 18426 on weak global cues, immediately hitting the day’s low of 18391. The index remained under pressure as global worries continued to weigh. However, some buying in FMCG and CD stocks lifted the sentiments leading the Sensex to touch the day’s high of 18541 in the afternoon session. The Nifty swung around the 5550 level and shut 42 points lower at 5550, while the Sensex fell 115 points in today’s trade to close at 18494.
Market sentiment
The market breadth stood extremely weak. Out of the 2,948 stocks traded on the BSE, 1,659 fell while 1,148 rose. 141 stocks traded unchanged.
Viewing volumes
India’s largest media conglomerate – Sun TV Network was the most traded, with over 1.15 crore shares changing hands on the BSE, followed by India’s Number 2 mobile carrier – Reliance Communications (0.60 crore shares), wind turbine major – Suzlon Energy (0.28 crore shares), India’s second largest developer – Unitech (0.28 crore shares) and a part of the Anil Dhirubhai Ambani Group – Reliance Capital (0.16 crore shares).
Sectoral & stock screening
Among the 13 sectoral indices, ten sectors fell while rest three managed to rise. BSE Bankex was the top loser declining by 1.52%, followed by BSE Metal down by 1.32% and BSE Realty fell by 1.26%. On the flip side, BSE FMCG was the top gainer rising by 1.01%, followed by BSE CD up by 0.34% and BSE Oil & Gas gained by 0.15%
Among ‘A’ group stocks, top three gainers — Rajesh Exports surged by 4.06%, Hindustan Unilever gained by 3.53% and Fortis Healthcare rose by 3.40%. Top three losers — Sun TV Network fell by 27.90%, Sterling International Enterprises slid by 8.56% and D B Realty lost by 5.18%.
Global signals
European markets fell adding to losses suffered in the previous sessions as weak economic data fuelled worries that the US recovery is losing momentum and on the reports that Moody’s downgraded Greek debt.
Majority of the Asian indices closed lower more than 1%, after disappointing US data added to suspicions that the global economy may slow down.
The US stock index futures point to a slightly higher opening on the Wall Street on Thursday.
Accurate, Indo Tech, Transformer, Voltamp witness losses
In today’s trade transformers stocks fell in the range of 2-4%
Accurate Transformers fell over 2% and touched the day’s low of Rs75.15. Till now, 3 shares have traded on the BSE as against the two-week average volume of 677 shares.
On the monthly basis stock fell by 17% from Rs90.55
Accurate Transformers closed at Rs75.15, down by 2.41%, with a volume of 3 shares on the BSE.
Indo Tech Transformers dips over 4% and touched the day’s low of Rs142.20. Till now, 15,561 shares have traded on the BSE as against the two-week average volume of 6,459 shares.
The stock had opened at Rs145.95 and hit the day’s high of Rs147.85
On the monthly basis stock fell over 8% from Rs154.75
Indo Tech Transformers closed at Rs142.35, down by 4.46%, with a volume of 15,561 shares on the BSE.
3. Transformers And Rectifiers (India)
Transformers And Rectifiers slipped over 3% and touched the day’s low of Rs257.15. Till now, 12,933 shares have traded on the BSE as against the two-week average volume of 5,088 shares.
The stock had opened at Rs260.20 and hit the day’s high of Rs271
On the monthly basis stock fell over 5% from Rs272
Transformers And Rectifiers closed at Rs263.95, down by 0.99%, with a volume of 12,933 shares on the BSE.
Voltamp Transformers, slides by 3% and touched the day’s low of Rs563.10. Till now, 1.49 lakh shares have traded on the BSE as against the two-week average volume of 0.58 lakh shares.
The stock had opened at Rs580 and hit the day’s high of Rs596.80.
Play safe with commercial property
High returns are a lure for investment in office space, but both loan-to-value and tenures are lower.
Property consultants say sluggish volumes in the residential sector and hardening interest rates have come as a boon for retail investors in office properties.
Today, in Mumbai, investors can own smaller units of space, of 500 to 1,000 sq ft, in Grade A buildings (those centrally air-conditioned and with standard amenities), in contrast to a few years earlier, when only larger units were available, says Ramesh Nair, managing director, West India, Jones Lang LaSalle (JLL), an international property consultant.
If you look at Lower Parel (in south-central Mumbai), you can own office space for Rs 1.5 crore, which was not possible a couple of years ago,” says Nair. While residential prices are upwards of Rs 20,000 a sq ft, office values are at Rs 15,000 a sq ft in Lower Parel.
Rental yields have also shot up from 9-10 per cent to 12-15 per cent in the past couple of months, due to increase in interest rates and borrowing costs. Rental yield is the amount of money an owner receives in rent over the course of a year and expressed as a percentage of the amount of money invested in the property.
“If you prefer higher yield and low upside, investment in office properties is a better bet,” says Prakrut Mehta, national director, office and industrial agency, Knight Frank India.
Besides, the advantages of small units are that it is easier to find tenants and the premises can be used for business by their owners if they happen to be of a entrepreneurial bent.
According to JLL, the demand for office space in India will be around 200 million sq ft over the next five years. Post the global financial crisis, the prices across most markets dropped 35-40 per cent and have bottomed out in most markets, offering investors a good opportunity to buy into commercial real estate.
Nair says there is an almost 50 per cent jump in absorption of office space in the past two years.
RISK FACTORS
But retail investors should not forget that the office market was hit hard during the property slowdown of 2008-2009 and the last one to recover from the lull, as companies and financial institutions deferred leasing transactions
“It is a high risk, high return investment segment. Investors should bear this factor in mind,” says Mehta of Knight Frank.
High vacancy levels are also one of the risks associated with investing in office properties.
According to JLL estimates, vacancy levels in office properties across the country have risen from two to three per cent to 18-19 per cent due to increased supply over the years.
“Investors need to study the demand and supply dynamics in a particular location where they are investing. If they do not engage in sufficient research, they may end up buying into micro markets which have or will have high vacancies,” Nair adds.
There is also a restriction on bank funding. Banks lend only up to 60 per cent of the loan to value ratio to buy commercial properties, subject to the borrower’s adequate net worth and established ability to repay. Again, the loans are given subject to a maximum of seven years.
“Your equity contribution is higher and tenure is fixed. You have to tackle these two issues,” says Mehta.
Investors also need to check developer credentials, potential for infrastructure development and quality of project management before deciding.
The imagination imitates it is the critical spirit 
