Experts from India's leading Financial Advisory firm InvestCare (P) Ltd has predicted in an advisory issued to their Investors, that there is a double dhamaka in store during Diwali this year for Indian Investors spread across two major asset classes. They have indicated that Consumers can expect a bumper Diwali this year despite the weak economy, which has cut down demand.
Experts at InvestCare are expecting premium housing projects to get cheaper by up to 20 per cent closer to Diwali. Potential buyers will not have to negotiate the discount with the individual buyers since the realty companies are in all probability going to make such announcements.
Sales at premium housing projects, where realty companies enjoy healthy margins, have fallen sharply and companies are sitting on unsold inventories. The unsold inventories could soon impact cash flow for the realtors. Depending on the project, a cut up to 20 per cent could be possible.
"A cut in prices is definitely possible for premium housing projects. If companies can cut prices, it will help bring back the buyers to the market despite the weak environment", Ajit Mishra, Managing Director, InvestCare (P) Ltd, said.
The situation is very different from the apartments being sold for the mass market. Since the builders have a lot more financial muscle, they can hold on to prices. However, they are open to negotiated deals with potential buyers, which can help cut down price for the buyer.
Gold prices could inch up after the compromise announced on shutdown and the situation of uncertainty continues in US. In the event of the debt ceiling being raised, the U.S. Federal Reserve will have to print more dollars, pushing up the prices of gold further north.
"Since U.S. debt is rising and the trend indicates it will continue, we are confident that gold prices will go up substantially from current levels to around Rs.35,000 mark”, Samar Vijay, Director, InvestCare (P) Ltd, said.
Gold prices are closely watched in India because India, along with China, we are amongst the two biggest consumers of gold in the world. Indian consumers account for nearly 20 per cent of annual gold purchases. The bull run for gold, which started in the middle of the last decade, seems set to continue because central banks across the world are printing money to support their weak economies.
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