India Morning Report: REIT’s make a splash in India again

Real Estate investments are likely to become one of Modi Government’s new priorities, with the earlier edition of REITs being a recipe for disaster in liquidity assurance and primary requirements of the markets still making it unviable to allow smaller retail participation in the sector.

One could well see REIT entry requirements upgraded from INR 1 mln to INR 5 mln in this version of the revamp allowing REITs to skip any pressure of Daily NAVs on the business. But my information is unlikely to be the last word on this stream. The Big SLR cut in addition yesterday pushes out a real deliverable in terms of new investments that steam India’s NDA phase of growth from here.

Euro falling CPI spurs policy action from Draghi later today , building on the recent weakness in the Euro. Also the Union Pound ( GBP/Pound Sterling urban/slang usage prompted here) is likely to ensure Sc otland does not press on in the EU and in referendum to separate from UK

PSU Banks are likely beneficiaries from a new bank holding structure in other reform push approved in the PMO adding to defined pathways successfully likely to be implemented by the Narendra Damodardas Modi government. It looks like MSCI would come under pressure again for its indices as float based definitions scar up a detrended , cut in MSCI India index and India moves out of its pegged peer groups on its over performance. India Nifty bottom is unlikely to go to 7100 and the Sensex could well try to strap on boosters to make 25000 a key support in the coming months, entcing an assessment of fresh buying though not at the index level.  15200 levels hold on the Banknifty and will likely move up again in the coming weeks.

Nifty is likely to hit a lasting 7500 score to underscore a move higher to 7800/30000 levels from here. As we predicted, Inflows are definitely capable of beating previous records in the Fiscal 2015.  The Rupee probably broke on FII sales exiting Equity before returning to Debt.

The list of losers is likely to include DRL/Sun Pharma and HCL Tech, though the worries on GAIL seem to be misplaced.

 

 

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