The benchmark BSE Sensex opened on a positive note Thursday amid buying by domestic as well as foreign institutional investors ahead of February derivatives expiry.

Investors, however, were cautious on concerns over the tension between India and Pakistan.

The 30-share index was trading higher by 81.45 points, or 0.23 per cent, to 35,986.88. The gauge had lost 308 points in the previous two sessions.

The NSE Nifty too was trading in the green, up 35.35 points, or 0.33 per cent, at 10,842.

Major gainers that supported key indices were Coal India, Bharti Airtel, ONGC, Sun Pharma, PowerGrid, Asian Paint, RIL, Infosys, ICICI Bank, IndusInd Bank, SBI, Tata

Motors, Yes Bank, HUL, HDFC Bank and Vedanta, rising up to 1.42 per cent.

According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, while attacks on the India Pakistan border and war-like situation continue to make headlines, Indian markets have been resilient.

"Clearly, the market appears to be suggesting that things will subside as both sides do not appear to want an escalation.&nbsp;

"The flip side of the event is that investors seem to be recognizing a greater likelihood of a victory for the current regime in upcoming elections; with the follow-on implication that while the near term may be fraught with tensions and a fear of escalation, the medium term picture is possibly clarifying in terms of election outcome and that's a positive for the market," he said.&nbsp;

Investors are covering their pending short positions on the last trading session of February futures and options (F&amp;O) expiry in the derivatives segment, brokers said.

Market is also awaiting GDP numbers and fiscal deficit data scheduled for release later in the day.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net of Rs 423.04 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 66.81 crore Wednesday, provisional data showed.

Elsewhere in Asia, Hong Kong's Hang Seng gained 0.06 per cent, while Japan's Nikkei was down 0.35 per cent in early trade Thursday. The Shanghai Composite Index fell 0.35 per cent.

The US Dow Jones Industrial Average ended 0.28 per cent lower Wednesday.&nbsp;

The rupee, meanwhile, rose 10 paise to 71.14 against the US dollar in opening.

The benchmark BSE Sensex opened on a positive note Thursday amid buying by domestic as well as foreign institutional investors ahead of February derivatives expiry.

The benchmark BSE Sensex opened on a positive note Thursday amid buying by domestic as well as foreign institutional investors ahead of February derivatives expiry. Investors, however, were cautious on concerns over the tension between India and Pakistan. The 30-share index was trading higher by 81.45 points, or 0.23 per cent, to 35,986.88. The gauge had lost 308 points in the previous two sessions. The NSE Nifty too was trading in the green, up 35.35 points, or 0.33 per cent, at 10,842. Major gainers that supported key indices were Coal India, Bharti Airtel, ONGC, Sun Pharma, PowerGrid, Asian Paint, RIL, Infosys, ICICI Bank, IndusInd Bank, SBI, Tata Motors, Yes Bank, HUL, HDFC Bank and Vedanta, rising up to 1.42 per cent. According to Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, while attacks on the India Pakistan border and war-like situation continue to make headlines, Indian markets have been resilient. "Clearly, the market appears to be suggesting that things will subside as both sides do not appear to want an escalation. "The flip side of the event is that investors seem to be recognizing a greater likelihood of a victory for the current regime in upcoming elections; with the follow-on implication that while the near term may be fraught with tensions and a fear of escalation, the medium term picture is possibly clarifying in terms of election outcome and that's a positive for the market," he said. Investors are covering their pending short positions on the last trading session of February futures and options (F&O) expiry in the derivatives segment, brokers said. Market is also awaiting GDP numbers and fiscal deficit data scheduled for release later in the day. Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net of Rs 423.04 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 66.81 crore Wednesday, provisional data showed. Elsewhere in Asia, Hong Kong's Hang Seng gained 0.06 per cent, while Japan's Nikkei was down 0.35 per cent in early trade Thursday. The Shanghai Composite Index fell 0.35 per cent. The US Dow Jones Industrial Average ended 0.28 per cent lower Wednesday. The rupee, meanwhile, rose 10 paise to 71.14 against the US dollar in opening.

Sensex, Nifty open positive ahead of February derivatives expiry

Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points.

Markets witnessed severe selling Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low and global crude oil price breached the USD 86 a barrel.

The gauge had lost 550.51 points Wednesday on rupee woes and surging crude oil prices.&nbsp;

Led by the sharp sell-off in equities, the market capitalisation of BSE-listed companies tumbled Rs 5,02,895.97 crore to Rs 1,40,39,742.92 crore (USD 1.90 trillion).

The dollar figure has been arrived at by calculating the m-cap from rupee's intra-day low of 73.81 Thursday.&nbsp;

With this, market capitalisation of BSE-listed firms slipped below the USD 2 trillion.

"The strongest of businesses and the bluest of blue chips have cracked in the last couple of sessions, which highlights the prevailing negative sentiment and an environment of pessimism. With the rupee hitting a record low, crude prices moving northwards, increasing fears of a broadening current account deficit along with the liquidity worries led to another major fall in the indices and broader markets.&nbsp;

"With deteriorating macros, all eyes will now be on the second quarter earnings and how the current liquidity situation is addressed," said Devang Mehta, Head ? Equity Advisory, Centrum Wealth Management.

The bloodbath on the bourses was primarily triggered by a continued slide in the rupee which hit yet another low of 73.81 (intra-day) against the dollar, brokers said. 
From the 30-share pack, 24 scrips declined, while 6 advanced.

RIL was the worst hit from the pack plunging 7.03 per cent followed by Hero MotoCorp 5.45 per cent and TCS 4.54 per cent.

In the broader market, the S&amp;P BSE midcap index fell by 1.93 per cent and smallcap index 2.07 per cent.

"Indian markets have been seeing a sharp sell-off on account of depreciation in rupee and higher crude prices. This negative sentiment was further reinforced by fears of liquidity crisis to support credit growth following the IL&amp;FS scare," said Nitasha Shankar, Sr Vice President and Head of Research, YES Securities.

Nearly 400 stocks hit their 52-week low on BSE Thursday.

At the BSE, 1,889 stocks declined, while 775 advanced and 138 remained unchanged.&nbsp;

Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points. Markets witnessed severe selling Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.

Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points. Markets witnessed severe selling Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low and global crude oil price breached the USD 86 a barrel. The gauge had lost 550.51 points Wednesday on rupee woes and surging crude oil prices. Led by the sharp sell-off in equities, the market capitalisation of BSE-listed companies tumbled Rs 5,02,895.97 crore to Rs 1,40,39,742.92 crore (USD 1.90 trillion). The dollar figure has been arrived at by calculating the m-cap from rupee's intra-day low of 73.81 Thursday. With this, market capitalisation of BSE-listed firms slipped below the USD 2 trillion. "The strongest of businesses and the bluest of blue chips have cracked in the last couple of sessions, which highlights the prevailing negative sentiment and an environment of pessimism. With the rupee hitting a record low, crude prices moving northwards, increasing fears of a broadening current account deficit along with the liquidity worries led to another major fall in the indices and broader markets. "With deteriorating macros, all eyes will now be on the second quarter earnings and how the current liquidity situation is addressed," said Devang Mehta, Head ? Equity Advisory, Centrum Wealth Management. The bloodbath on the bourses was primarily triggered by a continued slide in the rupee which hit yet another low of 73.81 (intra-day) against the dollar, brokers said. From the 30-share pack, 24 scrips declined, while 6 advanced. RIL was the worst hit from the pack plunging 7.03 per cent followed by Hero MotoCorp 5.45 per cent and TCS 4.54 per cent. In the broader market, the S&P BSE midcap index fell by 1.93 per cent and smallcap index 2.07 per cent. "Indian markets have been seeing a sharp sell-off on account of depreciation in rupee and higher crude prices. This negative sentiment was further reinforced by fears of liquidity crisis to support credit growth following the IL&FS scare," said Nitasha Shankar, Sr Vice President and Head of Research, YES Securities. Nearly 400 stocks hit their 52-week low on BSE Thursday. At the BSE, 1,889 stocks declined, while 775 advanced and 138 remained unchanged.

Investors become poorer by Rs 5 lakh crore in two days of market crash

World stocks slipped on Friday as expectations of trade tensions dominating this weekend's summit of G7 countries, along with renewed talk of monetary tightening by major central banks, weighed on risk sentiment.

The MSCI All-Country World index, which tracks shares in 47 countries, was down nearly half a per cent in morning trade in Europe - though it was still set to break a three-week streak of losses.

Fears of a trade war, expectations of more rate hikes in the United States, and a wind-down of a massive monetary stimulus in Europe fuelled a risk-off tone in markets, investors said.

The US&nbsp;Federal Reserve is widely expected to raise interest rates for a second time this year next week. The focus is on whether it will hint at raising rates four times in 2018.

European Central Bank policymakers meeting on June 14 will debate whether to end bond purchases later this year, the bank's chief economist said this week, in a hawkish message that sent the euro to a three-week top, hit emerging markets, and spurred demand for safe-haven bonds.

Before those meetings, however, markets will have to digest fallout from the G7 summit in Quebec, where the mounting risk of a tariff war between the United States and its major trade partners will be in the spotlight.

An unprecedented US-North Korea summit scheduled for June 12 in Singapore, with Washington seeking to pressure Pyongyang into abandoning its nuclear weapons programme, is giving investors another reason for caution.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 per cent after six straight sessions of gains took it to its highest since mid-March. It was on track for a weekly gain of more than 1 per cent.

Chinese shares slipped, with the blue-chip Shangai-Shenzhen index down 1.7 per cent and Hong Kong's Hang Seng.HSI declining 1.5 per cent.

Japan's Nikkei average and South Korea's KOSPI were off 0.6 per cent and 0.8 per cent, respectively, while Australian shares ended 0.1 per cent lower.

The pan-European STOXX 600 index was on track for its third weekly loss in a row, with renewed strength in the euro also weighing. It was down 0.7 per cent.

Italy's government bonds faced renewed selling pressure, as the risk aversion in world markets and unease about Rome's spending plans set yields on short-dated debt up for their biggest weekly rise since 2012.

"A few things are contributing to nervousness today -- the trade issues are back on, then there is the Italy situation and we are not sure how the ECB will respond to that," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Management.

"And in emerging markets, there are some idiosyncratic risks (Turkey, Argentina and Brazil) which are becoming worrying." He remained "cautious" on adding risk, as "none of these issues seems to have a clear short-term resolution."

The dollar rebounded 0.3 per cent from near three-week lows against a basket of currencies, helped by the strong jobless claims numbers in the US&nbsp;on Thursday.

The dollar has come under pressure this week as the euro bounced back from 10-month lows thanks to an ebbing of political concerns over Italy as well as the possible ECB moves over its bond purchases.

The dollar fell against the safe-haven Japanese yen to 109.35 but remained well below a four-month top of 111.39 touched in May.

The euro inched down to $1.1763 after four straight session of gains took it to its highest level since mid-May.

In commodities, copper came off from a 4-1/2-year high touched on Wednesday.

Oil prices fell as surging US&nbsp;output and signs of weakening demand in China output outweighed support from supply woes in Venezuela and OPEC's production cuts.

U.S. crude fell 0.5 per cent to $65.64 a barrel, while Brent dropped 0.5 per cent to $76.95.

Spot gold slipped 0.1 per cent at $1,298.47 an ounce.

Fears of a trade war, expectations of more rate hikes in the United States, and a wind-down of a massive monetary stimulus in Europe fuelled a risk-off tone in markets, investors said

World stocks slipped on Friday as expectations of trade tensions dominating this weekend's summit of G7 countries, along with renewed talk of monetary tightening by major central banks, weighed on risk sentiment. The MSCI All-Country World index, which tracks shares in 47 countries, was down nearly half a per cent in morning trade in Europe - though it was still set to break a three-week streak of losses. Fears of a trade war, expectations of more rate hikes in the United States, and a wind-down of a massive monetary stimulus in Europe fuelled a risk-off tone in markets, investors said. The US Federal Reserve is widely expected to raise interest rates for a second time this year next week. The focus is on whether it will hint at raising rates four times in 2018. European Central Bank policymakers meeting on June 14 will debate whether to end bond purchases later this year, the bank's chief economist said this week, in a hawkish message that sent the euro to a three-week top, hit emerging markets, and spurred demand for safe-haven bonds. Before those meetings, however, markets will have to digest fallout from the G7 summit in Quebec, where the mounting risk of a tariff war between the United States and its major trade partners will be in the spotlight. An unprecedented US-North Korea summit scheduled for June 12 in Singapore, with Washington seeking to pressure Pyongyang into abandoning its nuclear weapons programme, is giving investors another reason for caution. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 per cent after six straight sessions of gains took it to its highest since mid-March. It was on track for a weekly gain of more than 1 per cent. Chinese shares slipped, with the blue-chip Shangai-Shenzhen index down 1.7 per cent and Hong Kong's Hang Seng.HSI declining 1.5 per cent. Japan's Nikkei average and South Korea's KOSPI were off 0.6 per cent and 0.8 per cent, respectively, while Australian shares ended 0.1 per cent lower. The pan-European STOXX 600 index was on track for its third weekly loss in a row, with renewed strength in the euro also weighing. It was down 0.7 per cent. Italy's government bonds faced renewed selling pressure, as the risk aversion in world markets and unease about Rome's spending plans set yields on short-dated debt up for their biggest weekly rise since 2012. "A few things are contributing to nervousness today -- the trade issues are back on, then there is the Italy situation and we are not sure how the ECB will respond to that," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Management. "And in emerging markets, there are some idiosyncratic risks (Turkey, Argentina and Brazil) which are becoming worrying." He remained "cautious" on adding risk, as "none of these issues seems to have a clear short-term resolution." The dollar rebounded 0.3 per cent from near three-week lows against a basket of currencies, helped by the strong jobless claims numbers in the US on Thursday. The dollar has come under pressure this week as the euro bounced back from 10-month lows thanks to an ebbing of political concerns over Italy as well as the possible ECB moves over its bond purchases. The dollar fell against the safe-haven Japanese yen to 109.35 but remained well below a four-month top of 111.39 touched in May. The euro inched down to $1.1763 after four straight session of gains took it to its highest level since mid-May. In commodities, copper came off from a 4-1/2-year high touched on Wednesday. Oil prices fell as surging US output and signs of weakening demand in China output outweighed support from supply woes in Venezuela and OPEC's production cuts. U.S. crude fell 0.5 per cent to $65.64 a barrel, while Brent dropped 0.5 per cent to $76.95. Spot gold slipped 0.1 per cent at $1,298.47 an ounce.

Global Stocks: Stocks slip as central bank talk, trade, weigh on risk sentiment

Out of the unregulated sectors in India, real estate had, lately, garnered the maximum notoriety, given their misuse of power and resorting to patently unethical market practices. For the uninitiated, an unregulated sector is the one which does not have a dedicated legislation to govern its functioning and is, primarily, governed by the market practices.

Being unregulated, many builders misused the lack of negotiating power of the customers and resort to practices like fixed unilateral contracts which had conditions that clearly lacked fairness. Lately, the builders have also been missing the deadlines for possession of the property which is forming the major share of real estate litigation in consumer courts. The primary reason for the same was the diverting of the funds collected for one project to start another project simultaneously which adversely affected the progress of both.

The judicial and quasi-judicial forums were conscious about it and a series of judgments against the builders is a testimony to the fact. The Supreme Court, particularly, is coming down heavily on the leading builders who approached the top court citing their inability to refund the sums paid to them by the customers. Even the consumer courts have, time and again, chosen to sever the terms of builder-buyer agreements which are devoid of fairness. We are not to miss out on the order of the Competition Commission of India against DLF, whereby, a staggering penalty of Rs. 630 Crores was levied on the builder for the abuse of dominance in the form of unfair and arbitrary terms in the agreements.

From the perspective of the real estate sector also, the lack of fairness and transparency in transactions has adversely affected the investment in the sector and faith of customers. In sum and substance, this attitude had affected every stakeholder in the sector, be it the customers or the sector itself.

In order to rein in the menace, the government enacted the Real Estate (Regulation and Development) Act, 2016 which, among others, will provide a dedicated and expert sectoral regulator to adjudicate upon the disputes arising out of the real estate transactions. At the same time, it would also reduce the workload of the other judicial and quasi-judicial authorities which were facing an ever-increasing rise in litigations pertaining to default by builders.

The primary objective of the enactment is to streamline the functioning of the sector while providing sets of guidelines for the parties to adhere to in order to minimise the arbitrariness and restore the faith of customers and builders. Some of the aspects which were, hitherto, the subject of the whims and fancies of the builders have been incorporated in the Act as necessary compliances on their part. For example, informing the allottee about any minor addition or alteration and seeking the consent of 2/3rd of allottees about the major ones. Further, the builders are also liable to share the necessary information like the project plan, layout, government approvals and title status etc.

As stated above, till now, there was no dedicated regulatory authority to deal with the disputes pertaining to real estate but, after this Act, the Government has decided to set up a Real Estate Regulatory Authority in every state and Union Territory along with a Real Estate Appellate Tribunal. To prevent the disputes from lingering on, the Government has also set a time limit for them to be adjudicated upon at the earliest.

Further, all new projects are necessarily required to be registered with Real Estate Regulatory Authority if the project size exceeds 500 sq.m. or more than 8 apartments. Even the existing projects are required to be registered if they have not been granted the Occupancy Certificate or Completion Certificate. At the time of registration, the promoters are required to submit all the necessary information pertaining to the project, for example, land status, completion schedule etc. Only after the registration is granted, will the project be allowed to be marketed.&nbsp;

In order to secure the problem of delay in projects, the builders are now required to deposit 70 per cent of the total project cost in a dedicated bank account. Should the project be delayed despite the precautions, the builder would be liable to pay the same interest as the EMI being paid by the customer to the bank.

The systematic workflow would lead to the timely execution of projects along with an increased flow of foreign investment and private participation. In addition, thereto, the builders also stand to benefit from the same as this would lead the unscrupulous elements to exit the market leaving behind only the strong market players having the requisite competence. From the point of view of customers, this would prevent them to be subjected to whims and fancies of the builders and would bring homogeneity in the real estate ecosystem.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The lack of fairness and transparency in transactions has adversely affected the investment in the sector and faith of customers. The latest Real Estate Act is set to change the scenario.

Out of the unregulated sectors in India, real estate had, lately, garnered the maximum notoriety, given their misuse of power and resorting to patently unethical market practices. For the uninitiated, an unregulated sector is the one which does not have a dedicated legislation to govern its functioning and is, primarily, governed by the market practices. Being unregulated, many builders misused the lack of negotiating power of the customers and resort to practices like fixed unilateral contracts which had conditions that clearly lacked fairness. Lately, the builders have also been missing the deadlines for possession of the property which is forming the major share of real estate litigation in consumer courts. The primary reason for the same was the diverting of the funds collected for one project to start another project simultaneously which adversely affected the progress of both. The judicial and quasi-judicial forums were conscious about it and a series of judgments against the builders is a testimony to the fact. The Supreme Court, particularly, is coming down heavily on the leading builders who approached the top court citing their inability to refund the sums paid to them by the customers. Even the consumer courts have, time and again, chosen to sever the terms of builder-buyer agreements which are devoid of fairness. We are not to miss out on the order of the Competition Commission of India against DLF, whereby, a staggering penalty of Rs. 630 Crores was levied on the builder for the abuse of dominance in the form of unfair and arbitrary terms in the agreements. From the perspective of the real estate sector also, the lack of fairness and transparency in transactions has adversely affected the investment in the sector and faith of customers. In sum and substance, this attitude had affected every stakeholder in the sector, be it the customers or the sector itself. In order to rein in the menace, the government enacted the Real Estate (Regulation and Development) Act, 2016 which, among others, will provide a dedicated and expert sectoral regulator to adjudicate upon the disputes arising out of the real estate transactions. At the same time, it would also reduce the workload of the other judicial and quasi-judicial authorities which were facing an ever-increasing rise in litigations pertaining to default by builders. The primary objective of the enactment is to streamline the functioning of the sector while providing sets of guidelines for the parties to adhere to in order to minimise the arbitrariness and restore the faith of customers and builders. Some of the aspects which were, hitherto, the subject of the whims and fancies of the builders have been incorporated in the Act as necessary compliances on their part. For example, informing the allottee about any minor addition or alteration and seeking the consent of 2/3rd of allottees about the major ones. Further, the builders are also liable to share the necessary information like the project plan, layout, government approvals and title status etc. As stated above, till now, there was no dedicated regulatory authority to deal with the disputes pertaining to real estate but, after this Act, the Government has decided to set up a Real Estate Regulatory Authority in every state and Union Territory along with a Real Estate Appellate Tribunal. To prevent the disputes from lingering on, the Government has also set a time limit for them to be adjudicated upon at the earliest. Further, all new projects are necessarily required to be registered with Real Estate Regulatory Authority if the project size exceeds 500 sq.m. or more than 8 apartments. Even the existing projects are required to be registered if they have not been granted the Occupancy Certificate or Completion Certificate. At the time of registration, the promoters are required to submit all the necessary information pertaining to the project, for example, land status, completion schedule etc. Only after the registration is granted, will the project be allowed to be marketed. In order to secure the problem of delay in projects, the builders are now required to deposit 70 per cent of the total project cost in a dedicated bank account. Should the project be delayed despite the precautions, the builder would be liable to pay the same interest as the EMI being paid by the customer to the bank. The systematic workflow would lead to the timely execution of projects along with an increased flow of foreign investment and private participation. In addition, thereto, the builders also stand to benefit from the same as this would lead the unscrupulous elements to exit the market leaving behind only the strong market players having the requisite competence. From the point of view of customers, this would prevent them to be subjected to whims and fancies of the builders and would bring homogeneity in the real estate ecosystem. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Will India's notorious real estate sector change with new regulations?

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to a peak close to $20,000 prompted warnings by experts of a bubble.&nbsp;

After falling to as low as $11,159, it recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. It is down around 25 per cent this week, its largest weekly loss since April 2013.&nbsp;It capped a brutal week that had been touted as a new era of mainstream trading for the digital currency when bitcoin futures debuted on CME Group Inc, the world&#39;s largest derivatives market on Sunday.&nbsp;

Friday&#39;s fall bled into the US&nbsp;stock market, where shares of companies that have lashed their fortunes to bitcoin or blockchain - its underlying technology - took a knock. Long Blockchain Corp, Overstock.com Inc, Riot Blockchain Inc and Marathon Patent Group Inc lost between 2 per cent and 15 per cent.

The biggest and best-known cryptocurrency has risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges. But it has fallen each day since.

In the futures market, bitcoin one-month futures on Cboe Global Markets were earlier halted due to the steep price drop, while those trading on the CME hit the limit down threshold.&nbsp;&quot;The crypto markets have experienced several flash crashes over the past few years but we do believe there has been some overvaluation in the market, particularly over recent months,&quot; said Jamie Burke, CEO at venture capital firm Outlier Ventures.

&quot;It&#39;s much more likely this is a natural correction following over-exuberant market sentiment&quot;.&nbsp;On Friday, Mike Novogratz, the former macro hedge fund manager at Fortress Investment Group, told <a href="https://bloom.bg/2BA9gGN">Bloomberg</a> he had halted plans to launch a crypto-currency hedge fund.&nbsp;

&quot;We didn&#39;t like market conditions and we wanted to re-evaluate what we&#39;re doing&quot;, he told Bloomberg.&nbsp;His Galaxy Digital Assets Fund was due to start on December 15, but he called clients on December 12 and told them he had changed his mind, Novogratz said in an interview with Bloomberg.

Novogratz told Reuters in November he hoped to raise about $500 million, making it the largest fund of its kind.&nbsp;Warnings about the risks of investing in the unregulated market have increased - Denmark&#39;s central bank governor called it a &quot;deadly&quot; gamble - and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold.

South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year.&nbsp;Coinbase, a US&nbsp;company that runs one of the biggest exchanges and provides digital &quot;wallets&quot; for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp rise in the price of a bitcoin spin-off hours before it announced support for it.

On Friday, Coinbase said it had temporarily suspended buying and selling of bitcoin due to high traffic.

Crypto-Rivals

As some rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier.&nbsp;But other cryptocurrencies rose this week, with investors moving into cheaper digital coins, rather than cashing out of the sector.

Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday.&nbsp;Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said there had also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

&quot;Most of it is unsophisticated retail traders getting burned badly&quot;, Innes said on Bitcoin&#39;s recent retreat.&nbsp;While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain sceptical.

Bitcoin is known to go through wild swings. In November, it tumbled almost 30 per cent in four days from $7,888 to $5,555. In September, it fell 40 per cent from $4,979 to $2,972.

Bitcoin along with some other cryptocurrencies slid, the total estimated value of the crypto market fell to as low as $440 billion, having neared $650 billion just a day earlier

Bitcoin plunged by 30 per cent to below $12,000 on Friday as investors dumped the cryptocurrency after its sharp rise to a peak close to $20,000 prompted warnings by experts of a bubble. After falling to as low as $11,159, it recouped some losses to trade above $14,000 on the Bitstamp platform, down 9 percent on the day. It is down around 25 per cent this week, its largest weekly loss since April 2013. It capped a brutal week that had been touted as a new era of mainstream trading for the digital currency when bitcoin futures debuted on CME Group Inc, the world's largest derivatives market on Sunday. Friday's fall bled into the US stock market, where shares of companies that have lashed their fortunes to bitcoin or blockchain - its underlying technology - took a knock. Long Blockchain Corp, Overstock.com Inc, Riot Blockchain Inc and Marathon Patent Group Inc lost between 2 per cent and 15 per cent. The biggest and best-known cryptocurrency has risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges. But it has fallen each day since. In the futures market, bitcoin one-month futures on Cboe Global Markets were earlier halted due to the steep price drop, while those trading on the CME hit the limit down threshold. "The crypto markets have experienced several flash crashes over the past few years but we do believe there has been some overvaluation in the market, particularly over recent months," said Jamie Burke, CEO at venture capital firm Outlier Ventures. "It's much more likely this is a natural correction following over-exuberant market sentiment". On Friday, Mike Novogratz, the former macro hedge fund manager at Fortress Investment Group, told Bloomberg he had halted plans to launch a crypto-currency hedge fund. "We didn't like market conditions and we wanted to re-evaluate what we're doing", he told Bloomberg. His Galaxy Digital Assets Fund was due to start on December 15, but he called clients on December 12 and told them he had changed his mind, Novogratz said in an interview with Bloomberg. Novogratz told Reuters in November he hoped to raise about $500 million, making it the largest fund of its kind. Warnings about the risks of investing in the unregulated market have increased - Denmark's central bank governor called it a "deadly" gamble - and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold. South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year. Coinbase, a US company that runs one of the biggest exchanges and provides digital "wallets" for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp rise in the price of a bitcoin spin-off hours before it announced support for it. On Friday, Coinbase said it had temporarily suspended buying and selling of bitcoin due to high traffic. Crypto-Rivals As some rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier. But other cryptocurrencies rose this week, with investors moving into cheaper digital coins, rather than cashing out of the sector. Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday. Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said there had also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin. "Most of it is unsophisticated retail traders getting burned badly", Innes said on Bitcoin's recent retreat. While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain sceptical. Bitcoin is known to go through wild swings. In November, it tumbled almost 30 per cent in four days from $7,888 to $5,555. In September, it fell 40 per cent from $4,979 to $2,972.

Bitcoin falls 30 per cent, posts worst week since 2013

The Income Tax Department on Wednesday conducted survey operations at major Bitcoin exchanges across the country on suspicion of alleged tax evasion, official sources said.

They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, today visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning.

The survey, under section 133A of the Income Tax Act, is being conducted for &quot;gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others,&quot; they said.

The survey teams, sources said, are armed with various financial data and inputs about the working of these exchanges and this is the first big action against them in the country.

Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause of concern among central bankers the world over for quite a while now.

The Reserve Bank of India has also cautioned users, holders and traders of virtual currencies, including bitcoins.

In March, the Union finance ministry had constituted an Inter-Disciplinary Committee to take stock of the present status of VCs both in India and globally and suggest measures for dealing with such currencies.

Bitcoin is not regulated in the country and its circulation has been a cause of concern

The Income Tax Department on Wednesday conducted survey operations at major Bitcoin exchanges across the country on suspicion of alleged tax evasion, official sources said. They said various teams of the sleuths of the department, under the command of the Bengaluru investigation wing, today visited the premises of nine such exchanges in the country including in Delhi, Bengaluru, Hyderabad, Kochi and Gurugram, since early morning. The survey, under section 133A of the Income Tax Act, is being conducted for "gathering evidence for establishing the identity of investors and traders, transaction undertaken by them, identity of counterparties, related bank accounts used, among others," they said. The survey teams, sources said, are armed with various financial data and inputs about the working of these exchanges and this is the first big action against them in the country. Bitcoin, a virtual currency, is not regulated in the country and its circulation has been a cause of concern among central bankers the world over for quite a while now. The Reserve Bank of India has also cautioned users, holders and traders of virtual currencies, including bitcoins. In March, the Union finance ministry had constituted an Inter-Disciplinary Committee to take stock of the present status of VCs both in India and globally and suggest measures for dealing with such currencies.

I-T dept conducts surveys at Bitcoin exchanges country-wide

Most Asian currencies drifted on Thursday, with investors shying away from risk ahead of key central bank meetings next week and due to political uncertainty in the Middle East.&nbsp;Market players expect the mood to be cautious in the run-up to next Thursday when both the U.S. Federal Reserve and the European Central Bank are expected to hold policy meetings.&nbsp;

A Reuters poll showed a rate rise was almost certain at the Fed&#39;s Dec. 14 meeting, with three or more rate hikes expected next year. Expectations for a more vigorous rate cycle in 2018 got wind from progress in President Donald Trump`s tax cut plans.&nbsp;On the other hand, the ECB is expected to stand pat on policy at its meeting next week in Frankfurt.

Elsewhere, Trump on Wednesday reversed decades of U.S. policy and recognised Jerusalem as the capital of Israel, imperilling Middle East peace efforts and upsetting the Arab world and Western allies alike.&nbsp;The dollar on Thursday shook off losses against the yen, buoyed by optimism on U.S. tax reform and ahead of payrolls data on Friday.&nbsp;Meanwhile, a potential U.S. government shutdown looms if Congress fails to agree on a spending package.

&quot;The debt ceiling limit is another source of worry as emergency measures are only likely to last for 2/3 months before the Treasury runs out of funds,&quot; DBS Group strategists Eugene Leow and Philip Wee said in a note.&nbsp;&quot;Politics is likely to dominate macro cues at a time when valuations for risky assets appear lofty. Brace for volatility ahead.&quot;&nbsp;All local currencies in Asia were subdued, with the Malaysian ringgit the weakest among its peers against the dollar, easing 0.2 percent.

&quot;There&#39;s still quite a lot of equity outflow happening,&quot; said Andy Ji, a strategist for Commonwealth Bank of Australia in Singapore.&nbsp;&quot;The ringgit is still outperforming though&quot;. The Malaysian currency has been on an uptrend since early November, helped by a strong economy and rate rise expectations.

The South Korean won, the region`s biggest decliner in the previous session, was 0.16 percent firmer against the dollar, despite a 0.8-percent fall in the Kospi index.&nbsp;Ji said the won could be trading on the notion of &quot;a very hawkish central bank at this point in time despite a dovish rate rise&quot;.

Last month, the Bank of Korea raised its benchmark rate by 25 basis points to 1.5 percent from a record low level.

Indian Rupee

The rupee firmed marginally on Thursday after the Reserve Bank of India (RBI) kept rates unchanged in its policy meeting the day before, as expected, and left its policy stance &quot;neutral&quot;.&nbsp;The central bank was also seen as slightly softening its language on inflation by saying risks were &quot;evenly balanced&quot;.&nbsp;

The RBI raised its headline inflation projection in the range of 4.3 to 4.7 percent for the second half of 2018, compared with 4.2 to 4.6 percent earlier.&nbsp;&quot;Further upside to inflation and growth will nudge the RBI to turn hawkish, the likelihood of which is steadily rising,&quot; said DBS Group economist Radhika Rao.&nbsp;

With investors shying away from the risks due to anticipated central bank meetings next week, most of the Asian currencies drifted on Thursday.

Most Asian currencies drifted on Thursday, with investors shying away from risk ahead of key central bank meetings next week and due to political uncertainty in the Middle East. Market players expect the mood to be cautious in the run-up to next Thursday when both the U.S. Federal Reserve and the European Central Bank are expected to hold policy meetings. A Reuters poll showed a rate rise was almost certain at the Fed's Dec. 14 meeting, with three or more rate hikes expected next year. Expectations for a more vigorous rate cycle in 2018 got wind from progress in President Donald Trump`s tax cut plans. On the other hand, the ECB is expected to stand pat on policy at its meeting next week in Frankfurt. Elsewhere, Trump on Wednesday reversed decades of U.S. policy and recognised Jerusalem as the capital of Israel, imperilling Middle East peace efforts and upsetting the Arab world and Western allies alike. The dollar on Thursday shook off losses against the yen, buoyed by optimism on U.S. tax reform and ahead of payrolls data on Friday. Meanwhile, a potential U.S. government shutdown looms if Congress fails to agree on a spending package. "The debt ceiling limit is another source of worry as emergency measures are only likely to last for 2/3 months before the Treasury runs out of funds," DBS Group strategists Eugene Leow and Philip Wee said in a note. "Politics is likely to dominate macro cues at a time when valuations for risky assets appear lofty. Brace for volatility ahead." All local currencies in Asia were subdued, with the Malaysian ringgit the weakest among its peers against the dollar, easing 0.2 percent. "There's still quite a lot of equity outflow happening," said Andy Ji, a strategist for Commonwealth Bank of Australia in Singapore. "The ringgit is still outperforming though". The Malaysian currency has been on an uptrend since early November, helped by a strong economy and rate rise expectations. The South Korean won, the region`s biggest decliner in the previous session, was 0.16 percent firmer against the dollar, despite a 0.8-percent fall in the Kospi index. Ji said the won could be trading on the notion of "a very hawkish central bank at this point in time despite a dovish rate rise". Last month, the Bank of Korea raised its benchmark rate by 25 basis points to 1.5 percent from a record low level. Indian Rupee The rupee firmed marginally on Thursday after the Reserve Bank of India (RBI) kept rates unchanged in its policy meeting the day before, as expected, and left its policy stance "neutral". The central bank was also seen as slightly softening its language on inflation by saying risks were "evenly balanced". The RBI raised its headline inflation projection in the range of 4.3 to 4.7 percent for the second half of 2018, compared with 4.2 to 4.6 percent earlier. "Further upside to inflation and growth will nudge the RBI to turn hawkish, the likelihood of which is steadily rising," said DBS Group economist Radhika Rao.

Asian currencies drift as investors shy away from risk

The BSE Sensex edged lower on Tuesday as investors booked profits in recent gainers, but posted its biggest monthly gain since March 2016 after the government announced a plan last week to inject capital into state-run lenders.

The benchmark Sensex closed down 0.16 per cent at 33,213.13, but gained 6.2 percent for the month, its biggest such gain since March 2016.

The broader NSE Nifty ended 0.27 per cent lower at 10,335.30. It gained 5.6 percent for the month, its biggest monthly gain in three.

The BSE Sensex edged lower on Tuesday as investors booked profits in recent gainers

The BSE Sensex edged lower on Tuesday as investors booked profits in recent gainers, but posted its biggest monthly gain since March 2016 after the government announced a plan last week to inject capital into state-run lenders. The benchmark Sensex closed down 0.16 per cent at 33,213.13, but gained 6.2 percent for the month, its biggest such gain since March 2016. The broader NSE Nifty ended 0.27 per cent lower at 10,335.30. It gained 5.6 percent for the month, its biggest monthly gain in three.

Sensex falls, but posts biggest monthly gain since March 2016

India&#39;s incoming central bank governor&nbsp;Urjit Patel&nbsp;is widely regarded as having the professional and academic credentials he needs to make a success of his new job.

Less well known is whether a man who seems to feel most at ease in his own company commands the communication skills to answer to multiple constituencies and keep a 17,000-strong team on his side.

Patel, deputy governor of the Reserve Bank of India since 2013, demonstrated intellectual heft in overseeing landmark changes to the 81-year old institution, including switching to inflation-targeting and establishing a monetary policy panel to set interest rates.

Now promoted, Patel offers the promise of continuity with most of the policies of the man he will replace, Raghuram Rajan, who was feted by investors for halving inflation and for pulling the country out of its worst currency crisis in over two decades.

Within the RBI, however, Patel is widely viewed as a solitary and at times temperamental figure.

He avoids large meetings and gatherings with colleagues and, in contrast to other deputy governors who had busier public schedules, gives few speeches or media interviews. 
 
That raises questions about how Patel will approach the public aspects of a role that is set to be transformed under changes he largely helped spearhead. 
 
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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=&quot;The fact that he was reappointed as a deputy governor ... and now promoted ... shows the strong support he enjoys from the government.&quot;" target="_blank">&nbsp;</a></div>
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He will have to seek consensus with five other members of the RBI&#39;s new monetary policy committee.

He must also work closely with heads of state-owned banks as the sector battles to clean up $120 billion of soured loans - a relationship that greatly frustrated Rajan as lenders went only half way towards matching 150 basis points of RBI rate cuts. 
 
Respected by investors

Already known to have a good rapport with government officials, Patel may find his low public profile helps him develop even better ties.

Rajan, by contrast, faced a backlash from hard-right elements in Prime Minister Narendra Modi Bharatiya Janata Party (BJP) for sometimes peppering his public statements with social critiques.

&quot;(Patel) is extremely sensitive and pragmatic about not upsetting the government,&quot; said another senior RBI official who works with him.

&quot;The fact that he was reappointed as a deputy governor ... and now promoted ... shows the strong support he enjoys from the government,&quot; the first official said.

Patel is also likely to share his predecessor&#39;s good reputation among investors.

Both men worked for the International Monetary Fund and studied abroad, in Patel&#39;s case at the London School of Economics and Oxford University before heading across the Atlantic to Yale for his economics doctorate.

Patel has also spent time in the private sector with stints at the Boston Consulting Group and Indian energy conglomerate Reliance Industries&nbsp;and, at the RBI, was seen as the candidate most in tune with Rajan&#39;s policy agenda.

Having beaten off the challenge of, among others, IMF Executive Director Subir Gokarn to get the top job, analysts believe Patel will not kow-tow to the government either.

His reputation suggests he will uphold the independence of the central bank while pushing Modi and his ministers towards fiscal prudence - all welcome traits for investors used to a steady hand at the RBI tiller.

&quot;The new governor needs to reinforce the faith that the external world and Indian markets have in the ... central bank,&quot; said Mihir Vora, Chief Investment Officer of Max life insurance. 
 
(Reuters)

Within the RBI Urjit Patel is widely viewed as a solitary and at times temperamental figure

India's incoming central bank governor Urjit Patel is widely regarded as having the professional and academic credentials he needs to make a success of his new job. Less well known is whether a man who seems to feel most at ease in his own company commands the communication skills to answer to multiple constituencies and keep a 17,000-strong team on his side. Patel, deputy governor of the Reserve Bank of India since 2013, demonstrated intellectual heft in overseeing landmark changes to the 81-year old institution, including switching to inflation-targeting and establishing a monetary policy panel to set interest rates. Now promoted, Patel offers the promise of continuity with most of the policies of the man he will replace, Raghuram Rajan, who was feted by investors for halving inflation and for pulling the country out of its worst currency crisis in over two decades. Within the RBI, however, Patel is widely viewed as a solitary and at times temperamental figure. He avoids large meetings and gatherings with colleagues and, in contrast to other deputy governors who had busier public schedules, gives few speeches or media interviews. That raises questions about how Patel will approach the public aspects of a role that is set to be transformed under changes he largely helped spearhead. The fact that he was reappointed as a deputy governor ... and now promoted ... shows the strong support he enjoys from the government He will have to seek consensus with five other members of the RBI's new monetary policy committee. He must also work closely with heads of state-owned banks as the sector battles to clean up $120 billion of soured loans - a relationship that greatly frustrated Rajan as lenders went only half way towards matching 150 basis points of RBI rate cuts. Respected by investors Already known to have a good rapport with government officials, Patel may find his low public profile helps him develop even better ties. Rajan, by contrast, faced a backlash from hard-right elements in Prime Minister Narendra Modi Bharatiya Janata Party (BJP) for sometimes peppering his public statements with social critiques. "(Patel) is extremely sensitive and pragmatic about not upsetting the government," said another senior RBI official who works with him. "The fact that he was reappointed as a deputy governor ... and now promoted ... shows the strong support he enjoys from the government," the first official said. Patel is also likely to share his predecessor's good reputation among investors. Both men worked for the International Monetary Fund and studied abroad, in Patel's case at the London School of Economics and Oxford University before heading across the Atlantic to Yale for his economics doctorate. Patel has also spent time in the private sector with stints at the Boston Consulting Group and Indian energy conglomerate Reliance Industries and, at the RBI, was seen as the candidate most in tune with Rajan's policy agenda. Having beaten off the challenge of, among others, IMF Executive Director Subir Gokarn to get the top job, analysts believe Patel will not kow-tow to the government either. His reputation suggests he will uphold the independence of the central bank while pushing Modi and his ministers towards fiscal prudence - all welcome traits for investors used to a steady hand at the RBI tiller. "The new governor needs to reinforce the faith that the external world and Indian markets have in the ... central bank," said Mihir Vora, Chief Investment Officer of Max life insurance. (Reuters)

India's new central bank chief: Professional yes but does he have needed communication skills?

E-commerce in India has been booming and online giants like Amazon are spending big bucks on the world&#39;s fastest growing major economy. Yet some investors are pouring money into retail mainstays of a bygone era &ndash; shopping malls. 
 
Private equity investors like Blackstone and Rothschild-backed Xander Group are looking for malls in India, betting that people will flock to stores as more foreign brands open and online retailers ease their aggressive discounting. 
 
Indian malls, which are evolving from ramshackle collections of stores to modern plazas complete with air conditioning and family entertainment centres, are seen as a gateway to brands that a growing middle class aspires to own. 
 
The rise of the mall in India, at a time when many in the United States are becoming debt-ridden white elephants, has been helped by a flurry of new regulations that are encouraging investors to take a fresh look at traditional retail. 
 
They include easing foreign investment rules for single-brand retailers, longer shopping hours and a new framework for establishing real estate investment trusts (REITs). 
 
&quot;Almost every retailer would like to be here, and as they come they need quality space,&quot; said Siddharth Yog, chairman of Xander, whose Virtuous Retail arm owns five million square feet of operational and under-development malls in India. 
 
Xander is looking to buy and build new malls in cities like Delhi, Mumbai and Hyderabad, said Yog, as the outlook for physical retail stores brightens in India. 
 
Online retailers under pressure 
 
Investors had long shied away from shopping malls in India, amid weak consumer spending and deep discounts by online retailers like Amazon and local rivals Flipkart and Snapdeal. 
 
Now, online business players are under pressure from investors to produce returns, and this, combined with government regulation to ease online discounts, is reducing their advantage. 
 
With consumer spending in India set to top $3.6 trillion by 2020, and brands like Ikea, H&amp;M, Aeropostale and GAP planning forays into a country where new rules allow shops to remain open 24 hours a day, private equity firms see strong potential. 
 
&quot;With the same mall space generating more footfalls and revenues ... it&#39;ll definitely make organised retail properties enticing for investors,&quot; said Anuj Puri, chairman and country head at real estate consultant, Jones Lang LaSalle (JLL), India. 
 
Puri expects mall valuations and yields from retail properties to rise and attract investor interest, especially as REITs offer them a clear exit path. 
 
&quot;There&#39;s definitely a revival in interest in shopping malls and that&#39;s more to do with improved outlook for returns from these investments on the back of a revival in economic growth,&quot; said a Mumbai-based industry banker. 
 
The banker added that funds like Blackstone, Brookfield and Canada Pension Plan Investment Board (CPPIB) were looking at the sector from a medium to long term return standpoint. 
 
Quality space scarce 
 
A major challenge for retailers is the lack of high quality malls to house incoming brands, partly because the economic slowdown of 2011-2012 forced debt-laden developers to revise or abandon projects. 
 
Consulting firm AT Kearney estimates that India has just one-tenth of the mall space of the US market, despite having a population four times larger.&nbsp;For investors, the dearth of malls and growing demand from retailers means faster rental growth and higher yields.&nbsp; 
 
Retail rents in some malls have risen by as much as 20 per cent over the past year, and shopping centre yields in India are at about 11 per cent compared with 4.9 per cent in Singapore and 4 per cent in London, according to JLL. 
 
This also means the race to buy assets could be frenetic, with only about 20 per cent, or 39 million square feet of existing malls, being investment-worthy.&nbsp;Thus far in 2016, investors have spent $397 million on just two deals to buy malls in India, said JLL, compared with negligible investment in recent years. 
 
Blackstone, which has invested $2.7 billion in Indian real estate, mainly office buildings, is now in advanced talks to buy one million square feet of retail space from Larsen &amp; Toubro in suburban Mumbai, two people familiar with the deal said.&nbsp;A Blackstone spokesman declined to comment. 
 
The surge in investment could revive India&#39;s sluggish real estate market and kick start projects, say developers.&nbsp;&quot;Money is fungible and developers can use it to invest in other projects or reduce borrowing in existing ones,&quot; said Sriram Khattar, head of Indian developer DLF Ltd&#39;s rental business. 
 
(Reuters)&nbsp;

Private firms are looking to buy up retail spaces, anticipating high rentals when more foreign brands open stores

E-commerce in India has been booming and online giants like Amazon are spending big bucks on the world's fastest growing major economy. Yet some investors are pouring money into retail mainstays of a bygone era – shopping malls. Private equity investors like Blackstone and Rothschild-backed Xander Group are looking for malls in India, betting that people will flock to stores as more foreign brands open and online retailers ease their aggressive discounting. Indian malls, which are evolving from ramshackle collections of stores to modern plazas complete with air conditioning and family entertainment centres, are seen as a gateway to brands that a growing middle class aspires to own. The rise of the mall in India, at a time when many in the United States are becoming debt-ridden white elephants, has been helped by a flurry of new regulations that are encouraging investors to take a fresh look at traditional retail. They include easing foreign investment rules for single-brand retailers, longer shopping hours and a new framework for establishing real estate investment trusts (REITs). "Almost every retailer would like to be here, and as they come they need quality space," said Siddharth Yog, chairman of Xander, whose Virtuous Retail arm owns five million square feet of operational and under-development malls in India. Xander is looking to buy and build new malls in cities like Delhi, Mumbai and Hyderabad, said Yog, as the outlook for physical retail stores brightens in India. Online retailers under pressure Investors had long shied away from shopping malls in India, amid weak consumer spending and deep discounts by online retailers like Amazon and local rivals Flipkart and Snapdeal. Now, online business players are under pressure from investors to produce returns, and this, combined with government regulation to ease online discounts, is reducing their advantage. With consumer spending in India set to top $3.6 trillion by 2020, and brands like Ikea, H&M, Aeropostale and GAP planning forays into a country where new rules allow shops to remain open 24 hours a day, private equity firms see strong potential. "With the same mall space generating more footfalls and revenues ... it'll definitely make organised retail properties enticing for investors," said Anuj Puri, chairman and country head at real estate consultant, Jones Lang LaSalle (JLL), India. Puri expects mall valuations and yields from retail properties to rise and attract investor interest, especially as REITs offer them a clear exit path. "There's definitely a revival in interest in shopping malls and that's more to do with improved outlook for returns from these investments on the back of a revival in economic growth," said a Mumbai-based industry banker. The banker added that funds like Blackstone, Brookfield and Canada Pension Plan Investment Board (CPPIB) were looking at the sector from a medium to long term return standpoint. Quality space scarce A major challenge for retailers is the lack of high quality malls to house incoming brands, partly because the economic slowdown of 2011-2012 forced debt-laden developers to revise or abandon projects. Consulting firm AT Kearney estimates that India has just one-tenth of the mall space of the US market, despite having a population four times larger. For investors, the dearth of malls and growing demand from retailers means faster rental growth and higher yields. Retail rents in some malls have risen by as much as 20 per cent over the past year, and shopping centre yields in India are at about 11 per cent compared with 4.9 per cent in Singapore and 4 per cent in London, according to JLL. This also means the race to buy assets could be frenetic, with only about 20 per cent, or 39 million square feet of existing malls, being investment-worthy. Thus far in 2016, investors have spent $397 million on just two deals to buy malls in India, said JLL, compared with negligible investment in recent years. Blackstone, which has invested $2.7 billion in Indian real estate, mainly office buildings, is now in advanced talks to buy one million square feet of retail space from Larsen & Toubro in suburban Mumbai, two people familiar with the deal said. A Blackstone spokesman declined to comment. The surge in investment could revive India's sluggish real estate market and kick start projects, say developers. "Money is fungible and developers can use it to invest in other projects or reduce borrowing in existing ones," said Sriram Khattar, head of Indian developer DLF Ltd's rental business. (Reuters)

In India, old-school shopping malls find a new lease of life

Hamas-ruled Gaza might soon be reconnected with the rest of the world, Israel&rsquo;s transportation said Monday proposing an artificial island.&nbsp; 
 
Asserting that the island will alleviate economic hardship in the blockaded coastal strip, Yisrael Katz said that the eight kilometre island would be linked to Gaza with a five-kilometre bridge.&nbsp; 
 
Aiming to lift the economic blockade it imposed on Palestinian enclave nearly a decade ago, the USD 5-billion artificial island would be set up with a seaport, hotels and airport off the Gaza strip. Israel is actively seeking investors while Katz insisted that the project will not be funded by Israel.&nbsp; 
 
&quot;I do not think it is right to lock up two million people without any connection to the world,&rdquo; Katz told the foreign reporters adding, &ldquo;Israel has no interest to make life harder for the population there. But because of security concerns we can&#39;t build an airport or seaport in Gaza.&rdquo; 
 
The proposal, however, has been dubbed as &lsquo;dubious&rsquo; and politically motivated by the Palestinian authority.&nbsp; 
&nbsp;

Israel is actively looking for foreign investors for the proposed project

Hamas-ruled Gaza might soon be reconnected with the rest of the world, Israel’s transportation said Monday proposing an artificial island. Asserting that the island will alleviate economic hardship in the blockaded coastal strip, Yisrael Katz said that the eight kilometre island would be linked to Gaza with a five-kilometre bridge. Aiming to lift the economic blockade it imposed on Palestinian enclave nearly a decade ago, the USD 5-billion artificial island would be set up with a seaport, hotels and airport off the Gaza strip. Israel is actively seeking investors while Katz insisted that the project will not be funded by Israel. "I do not think it is right to lock up two million people without any connection to the world,” Katz told the foreign reporters adding, “Israel has no interest to make life harder for the population there. But because of security concerns we can't build an airport or seaport in Gaza.” The proposal, however, has been dubbed as ‘dubious’ and politically motivated by the Palestinian authority.

Offshore seaport to soon reconnect Gaza with world

Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors&#39; appetite for riskier assets, while the recently bullish dollar stalled against the Euro and Yen following a mixed bag of U.S. economic data.

Spreadbetters also expected a shaky start for European shares, forecasting Britain&#39;s FTSE, Germany&#39;s DAX and France&#39;s CAC to open flat to slightly lower.

Japan&#39;s Nikkei lost more than one percent as the yen firmed. Other decliners included Australian stocks&nbsp;which fell 1.0 percent.

Hong Kong&#39;s Hang Seng and South Korea&#39;s KOSPI stood little changed.

Shanghai see-sawed in and out of negative terrain, and was last up 0.1 percent, after rallying on Tuesday on expectations MSCI could add China&#39;s mainland stocks to its emerging market benchmark for the first time.

David Dai, Shanghai-based investor director at Nanhai Fund Management Co, said any market rally was unlikely to be sustainable at this stage.

&quot;The economy is still weak, and the Fed will likely raise rates soon. I don&#39;t think the market will go up much further. The best strategy now is to take profit.&quot;

There was little market reaction to the official and private surveys on China&#39;s manufacturing activity, which were roughly in line with expectations, suggesting the world&#39;s second-largest economy is still struggling to regain traction.

The Caixin/Markit Manufacturing Purchasing Managers&#39; index (PMI) showed activity at China&#39;s factories shrank for a 15th straight month in May. The official manufacturing May PMI painted a slightly more optimistic picture and stood unchanged from the previous month at 50.1

MSCI&#39;s broadest index of Asia-Pacific shares outside Japan recovered from an earlier dip and crawled up 0.1 percent.

The Dow shed 0.5 percent and the S&amp;P 500 dipped 0.1 percent on Tuesday, as energy shares weakened in the wake of a slip in oil prices and offset a rise in safe-haven utilities.

Crude pulled back from eight-month highs reached last week amid expectations that a global glut was easing, falling overnight to profit taking. U.S. crude was last down 0.7 percent at $48.76 a barrel and Brent fell 0.8 percent to $49.51.

The fall in oil prices was exacerbated after United Arab Emirates Oil Minister Suhail bin Mohammed al-Mazroui said he was happy with the oil market, noting that prices had been correcting higher.

The UAE oil minister&#39;s comments touched a nerve in a market wary that an OPEC meeting on Thursday may not pave the way for a production freeze.

&quot;The political will of the OPEC countries to enact a production freeze is clearly waning. A production freeze is unlikely to come up as an agenda at the June meeting,&quot; wrote Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities in Tokyo.

&quot;A sense of crisis among the oil producing countries appears to have receded following the recent spike in crude oil prices.&quot;

In currencies, the dollar was down 0.6 percent at 110.010 yen, having come off a one-month high of 111.455 struck on Monday after Federal Reserve Chair Janet Yellen&#39;s comments raised expectations for a near-term U.S. rate hike.

The Euro was at $1.1120, putting some distance between a 2-1/2-month low of $1.1097 touched on Monday.

U.S. data overnight saw personal income-related and housing indicators come in strong, while the Chicago manufacturing PMI and consumer confidence data proved disappointing.

The Australian Dollar was up 0.6 percent to $0.7277 helped by stronger-than-expected first quarter economic growth, which pushed it further away from last week&#39;s three-month low of $0.7145.

Sterling was on the defensive, last trading little changed at $1.4490 after dropping more than one percent on Tuesday, after polls showing those who support Brexit may be increasing.

investors lose hope as the price of oil slips further

Asian stocks were on a weak footing on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the Euro and Yen following a mixed bag of U.S. economic data. Spreadbetters also expected a shaky start for European shares, forecasting Britain's FTSE, Germany's DAX and France's CAC to open flat to slightly lower. Japan's Nikkei lost more than one percent as the yen firmed. Other decliners included Australian stocks which fell 1.0 percent. Hong Kong's Hang Seng and South Korea's KOSPI stood little changed. Shanghai see-sawed in and out of negative terrain, and was last up 0.1 percent, after rallying on Tuesday on expectations MSCI could add China's mainland stocks to its emerging market benchmark for the first time. David Dai, Shanghai-based investor director at Nanhai Fund Management Co, said any market rally was unlikely to be sustainable at this stage. "The economy is still weak, and the Fed will likely raise rates soon. I don't think the market will go up much further. The best strategy now is to take profit." There was little market reaction to the official and private surveys on China's manufacturing activity, which were roughly in line with expectations, suggesting the world's second-largest economy is still struggling to regain traction. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) showed activity at China's factories shrank for a 15th straight month in May. The official manufacturing May PMI painted a slightly more optimistic picture and stood unchanged from the previous month at 50.1 MSCI's broadest index of Asia-Pacific shares outside Japan recovered from an earlier dip and crawled up 0.1 percent. The Dow shed 0.5 percent and the S&P 500 dipped 0.1 percent on Tuesday, as energy shares weakened in the wake of a slip in oil prices and offset a rise in safe-haven utilities. Crude pulled back from eight-month highs reached last week amid expectations that a global glut was easing, falling overnight to profit taking. U.S. crude was last down 0.7 percent at $48.76 a barrel and Brent fell 0.8 percent to $49.51. The fall in oil prices was exacerbated after United Arab Emirates Oil Minister Suhail bin Mohammed al-Mazroui said he was happy with the oil market, noting that prices had been correcting higher. The UAE oil minister's comments touched a nerve in a market wary that an OPEC meeting on Thursday may not pave the way for a production freeze. "The political will of the OPEC countries to enact a production freeze is clearly waning. A production freeze is unlikely to come up as an agenda at the June meeting," wrote Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities in Tokyo. "A sense of crisis among the oil producing countries appears to have receded following the recent spike in crude oil prices." In currencies, the dollar was down 0.6 percent at 110.010 yen, having come off a one-month high of 111.455 struck on Monday after Federal Reserve Chair Janet Yellen's comments raised expectations for a near-term U.S. rate hike. The Euro was at $1.1120, putting some distance between a 2-1/2-month low of $1.1097 touched on Monday. U.S. data overnight saw personal income-related and housing indicators come in strong, while the Chicago manufacturing PMI and consumer confidence data proved disappointing. The Australian Dollar was up 0.6 percent to $0.7277 helped by stronger-than-expected first quarter economic growth, which pushed it further away from last week's three-month low of $0.7145. Sterling was on the defensive, last trading little changed at $1.4490 after dropping more than one percent on Tuesday, after polls showing those who support Brexit may be increasing.

Asia wavers as oil slip sinks sentiment, dollar stalls

Michael Dell and Silver Lake Partners underpriced their 2013 $24.9 billion buyout of Dell Inc [DI.UL] by about 22 per cent, and may have to pay tens of millions to investors who opposed the deal for the computer maker, a Delaware judge ruled on Tuesday. 
 
The ruling, which applies to about 5.5 million Dell shares, is a victory for the specialized hedge funds that have increasingly tried to squeeze more money from mergers using a type of lawsuit known as appraisal. 
 
The lawsuits allow investors who oppose a deal, such as the bitterly contested Dell buyout, to sue and ask a Delaware judge to determine a fair deal price. 
 
Activist investor Carl Icahn urged Dell shareholders to vote down the deal and take their case for fair value to court. Initially around 40 million shares sought appraisal, although the bulk were removed for procedural reasons.&nbsp; 
 
In Tuesday`s ruling, Vice Chancellor Travis Laster said fair value was $17.62 per share, not the $13.75 per share deal price. 
With interest, investors who sought appraisal will collect about $20.84 per share. 
 
The Dell investors presented evidence that fair value was $28.61 per share, which would have cost Michael Dell and Silver Lake hundreds of millions of dollars. The buyers` contended fair value was $12.68. 
 
Dell and a lawyer for the stockholders, Stuart Grant, declined to comment. Tuesday`s ruling can be appealed.&nbsp; 
Laster said the Dell buyout took advantage of a dip in the company`s stock price and its board never determined the intrinsic value before negotiating. 
 
&quot;The original merger consideration was dictated by what a financial sponsor could pay and still generate outsized returns,&quot; wrote Laster. 
The judge dedicated much of the opinion to explaining why deal price was not a fair value indicator, particularly in a management-led buyout. Delaware judges had used deal price in appraisals involving the closely watched buyouts of Ancestry.com in 2012 and BMC Software Inc in 2013. 
 
The added cost to the buyers from Tuesday`s ruling is about $36 million. 
 
About 3.9 million appraised shares were held by affiliates of Magnetar Capital.&nbsp; 
 
A small number of hedge funds have built a strategy of swooping in just before a deal closes, when there is less risk a deal would collapse, and buying stock for the sole purpose of seeking appraisal. 
 
Investors who seek appraisal do not get paid at the deal`s closing, but they collect interest of 5 percentage points above the federal discount rate while the case is pending. The U.S. Chamber of Commerce has complained that encourages hedge funds to bring cases because they can earn a return even when a deal price is found to be fair. 
 
One of the biggest losers from the Dell case may be T Rowe Price, one of the few mutual fund managers to test the appraisal strategy. 
Dell was able to knock out T Rowe Price`s stock, which was the bulk of the shares in the case, because the fund manager mistakenly voted in favour of the buyout. 
 
T Rowe Price stood to collect around $190 million if its Dell stock had been appraised. Laster also ruled on Tuesday the fund manager was not entitled to interest on its shares. 
 
&quot;T Rowe Price runs mutual funds and allocates capital, but they may regret trying to do this themselves,&quot; said Minor Myers, a professor at Brooklyn Law School in New York. &quot;This is just one of the pitfalls with appraisal, and it`s not for novices&quot;.

Michael Dell and Silver Lake Partners hugely underpriced their 2013 $24.9 billion buyout of Dell Inc, and may have to pay tens of millions to investors

Michael Dell and Silver Lake Partners underpriced their 2013 $24.9 billion buyout of Dell Inc [DI.UL] by about 22 per cent, and may have to pay tens of millions to investors who opposed the deal for the computer maker, a Delaware judge ruled on Tuesday. The ruling, which applies to about 5.5 million Dell shares, is a victory for the specialized hedge funds that have increasingly tried to squeeze more money from mergers using a type of lawsuit known as appraisal. The lawsuits allow investors who oppose a deal, such as the bitterly contested Dell buyout, to sue and ask a Delaware judge to determine a fair deal price. Activist investor Carl Icahn urged Dell shareholders to vote down the deal and take their case for fair value to court. Initially around 40 million shares sought appraisal, although the bulk were removed for procedural reasons. In Tuesday`s ruling, Vice Chancellor Travis Laster said fair value was $17.62 per share, not the $13.75 per share deal price. With interest, investors who sought appraisal will collect about $20.84 per share. The Dell investors presented evidence that fair value was $28.61 per share, which would have cost Michael Dell and Silver Lake hundreds of millions of dollars. The buyers` contended fair value was $12.68. Dell and a lawyer for the stockholders, Stuart Grant, declined to comment. Tuesday`s ruling can be appealed. Laster said the Dell buyout took advantage of a dip in the company`s stock price and its board never determined the intrinsic value before negotiating. "The original merger consideration was dictated by what a financial sponsor could pay and still generate outsized returns," wrote Laster. The judge dedicated much of the opinion to explaining why deal price was not a fair value indicator, particularly in a management-led buyout. Delaware judges had used deal price in appraisals involving the closely watched buyouts of Ancestry.com in 2012 and BMC Software Inc in 2013. The added cost to the buyers from Tuesday`s ruling is about $36 million. About 3.9 million appraised shares were held by affiliates of Magnetar Capital. A small number of hedge funds have built a strategy of swooping in just before a deal closes, when there is less risk a deal would collapse, and buying stock for the sole purpose of seeking appraisal. Investors who seek appraisal do not get paid at the deal`s closing, but they collect interest of 5 percentage points above the federal discount rate while the case is pending. The U.S. Chamber of Commerce has complained that encourages hedge funds to bring cases because they can earn a return even when a deal price is found to be fair. One of the biggest losers from the Dell case may be T Rowe Price, one of the few mutual fund managers to test the appraisal strategy. Dell was able to knock out T Rowe Price`s stock, which was the bulk of the shares in the case, because the fund manager mistakenly voted in favour of the buyout. T Rowe Price stood to collect around $190 million if its Dell stock had been appraised. Laster also ruled on Tuesday the fund manager was not entitled to interest on its shares. "T Rowe Price runs mutual funds and allocates capital, but they may regret trying to do this themselves," said Minor Myers, a professor at Brooklyn Law School in New York. "This is just one of the pitfalls with appraisal, and it`s not for novices".

US court rules $24.9 billion Dell buyout underpriced by 22 per cent

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