Rajiv Singh Tops 2024 GROHE-HURUN India Real Estate Rich List; Bengaluru Dominates Top Ten

With a wealth of INR 1,24,420 Cr, Rajiv Singh from DLF leads the 2024 GROHE-Hurun India Real Estate Rich, followed by Mangal Prabhat Lodha from Macrotech Developers with INR 91,700 Cr at the second spot, and Gautam Adani & family from the Adani Realty with INR 56,500 Cr at third. Of the top 10 on the real estate rich list, five are from Bengaluru and four from Mumbai.

Rajiv Singh, 65, the Managing Director of DLF, is the wealthiest Indian real estate entrepreneur with a wealth of INR 1.2 lakh crore, maintaining his position in the 2024 GROHE-Hurun India Real Estate 100. Singh's pivotal role in fostering Haryana's economic development was recognized with the Udyog Ratna Award in December 2005.

With a wealth of INR 91,700 crore, Mangal Prabhat Lodha and family of Macrotech Developers (formerly Lodha Group), maintains position as the second wealthiest in India's real estate landscape. Macrotech Developers, currently spearheaded by Abhishek Lodha recorded its highest-ever pre-sales of INR 14,520 crore in FY24.

Gautam Adani and family secured the third position with a wealth of INR 56,500 crore, marking a 62% increase since 2023. Known for his strategic acumen and vision, Gautam Adani has steered Adani Realty into the top 10 in this year's list.

Vikas Oberoi, 54, of Oberoi Realty, has risen to the fourth position on the list following a wealth surge of 96%, reaching INR 44,820 Cr. Oberoi Realty has expanded into the National Capital Region (NCR) by acquiring 14.81 acres of land in Gurugram, Haryana, for INR 597 Cr.

Chandru Raheja and family of K Raheja Group has moved down by one to the 5th position on the list despite seeing wealth grow by 65% over the past year. Currently, the company is strategizing the redevelopment of SOBO Central Mall, India’s pioneering mall, into a luxurious high-end residential project.

Atul Ruia, 53, has risen to the sixth position in the 2024 GROHE-Hurun India Real Estate 100 with a wealth of INR 26,370 Cr, reflecting a remarkable 110% increase. Phoenix Mills is gearing up to elevate its presence with the addition of a third mall in Thane, Mumbai Metropolitan Region, alongside exploring promising prospects for a new hotel development.

Raja Bagmane, 64, of Bagmane Developers holds the seventh position with a wealth of INR 19,650 Cr, reflecting a 5% increase. Recently, the Bengaluru-based company leased 2.23 lakh sq. ft of office space to Texas Instruments for a monthly rent of INR 1.4 Cr.

Jitendra Virwani, 58, has secured the 8th position on the list with a wealth of INR 18,000 Cr, despite experiencing a 53% decrease in his wealth over the past year. Notably, he is the only individual in the top 10 to have seen a reduction in wealth from 2023. Embassy Group, under his leadership, has become one of India's leading real estate developers, known for its commercial properties and office spaces.

Irfan Razack, 70, Rezwan Razack, 69 and Noaman Razack, 66, of Prestige Estates Projects hold the ninth spot on the list, each with a wealth of 13,970 Cr, marking a significant increase of 230%. Currently, Prestige Estates Projects manages 1,849 keys of hospitality assets across the country and plans to double its hospitality portfolio over the next three to four years, with a total investment of INR 1,700 Cr.

Gold prices drop in India amid Customs duty cut and global trends: Should you buy now?

Gold prices fall on Thursday (July 25), continuing a downward trend that began following Finance Minister Nirmala Sitharaman's announcement of a reduction in Customs duty on gold, silver and platinum. The cut, from 15% to 6%, was intended to lower gold prices, which had been at record highs. Domestic trends On July 25, 2024, 22K gold prices in India fell by ?950 to ?64,000 per 10 grams, and the price for 100 grams dropped by ?9,500 to ?6,40,000.

This decline represents a 1.48% decrease in prices from the previous day, according to Good returns data. Global market Globally, gold prices fell more than 1% on Thursday. Spot gold was down 1.2% to $2,369.20 per ounce, while US gold futures declined 1.8% to $2,373.00. The drop is attributed to profit-taking as investors await US economic data, including GDP and personal consumption expenditures (PCE) reports. These reports are anticipated to provide clues on potential Federal Reserve interest rate cuts.

Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, was quoted as saying in a Reuters report, “When you look from a fundamental perspective, there are no factors pressuring gold. So, it looks like we are seeing some profit-taking and from a technical perspective, prices could move lower.” Investment outlook The outlook for gold remains mixed. Analysts are closely watching upcoming US data for indications of future Federal Reserve rate cuts. A rate cut could enhance gold's appeal as a non-yielding asset. According to the CME FedWatch Tool, there is a 96% chance of a 25 basis point rate cut in September.

A reduction in rates would likely boost gold prices. Rahul Kalantri, VP Commodities at Mehta Equities said, “Gold and silver prices exhibited considerable volatility. A sharp reduction in India's import duty on gold and silver is expected to boost retail demand.

We anticipate some support for prices if the Fed delivers on expected rate cuts.” However, In India, the reduction in Customs duty is seen as a move to drive down retail prices and reduce grey market activity. Vikas Singh, Managing Director & CEO of MMTC-PAMP, stated, “Gold in India is more than just a precious metal. The reduction in duty is expected to drive down retail prices and stimulate consumption.” Globally, silver has also experienced a drop, with prices falling 4.2% to $27.78 per ounce. Other precious metals, including platinum and palladium, have seen decreases as well.

Budget 2024 – Sanctity of macro preserved without populism!

The budget is well-balanced and disciplined for the Indian economy and should continue to foster growth with more inclusivity… well, until the next budget!

At first glance, the budget seemed populist, but it is not! Yes, there is a big push to try and fire up employment but incentivising the private sector to hire more and tackle the big challenge of unemployment given that we need to create 7-8 million new jobs annually. Think of it as a PLI (production linked incentive) for employment generation. How this will be operationalised on the ground is to be seen, but the intent is in the right direction.

The moot question in the minds of investors was – what the government will do with the additional Rs 1.4 lakh crore (Rs 1.4 trillion) of resources that it has due to higher RBI dividend and better tax collections? Will it be more populist, or will it increase the allocation for capex and fiscal consolidation? The Finance Minister’s decision to allocate nearly 70 percent of this surplus to reduce the fiscal deficit, and 30 percent to increased transfers to states, while maintaining capex at Rs 11 lakh crore, is prudent. This somewhat anticipated allocation of Rs 0.4 lakh crore to the two states - Bihar and Andhra, both very important allies in the NDA government - can also be construed as an infrastructure stimulus, as this amount will be spent on building infrastructure in these states including power, roads, irrigation, and education.

By aggressively bringing down the fiscal deficit to 4.9 percent for FY25 and showing a glide path to 4.5 percent by FY26, is a signal to global rating agencies to upgrade India’s sovereign rating. This strategic move will help in bringing down the cost of capital in India on a long-term structural basis and bring down long term interest rates in the country.

From a capital markets perspective, the increase in STCG (Short Term Capital Gains) and LTCG (Long Term Capital Gains) on listed equities was a slight dampener. But one can take comfort from the fact that this was part of a larger design to simplify the capital gains tax on all asset classes – equites both listed and unlisted, debt, gold and real estate. The capital markets will take this in its stride, as it always has, and investors will move on. Given that there was an overwhelming feeling that some regulatory and tax interventions would be taken to curb the excessive speculative fervour in the Futures and Options market, the increase in STT (Securities Transaction Tax) is welcome. There could be more follow up measures like increasing lot sizes and rationalising the expiry days, but once that is done the hanging sword on regulatory interventions would be out of the way, in our view.

Unicorn alert! Trading startup Dhan in discussions to raise $100 million at $1.5 billion valuation

For Dhan, the new round will be its largest since its inception in 2021 and even the company’s valuation will increase significantly from around $150 million to a staggering $1.2-1.5 billion.

Raise Financial Services, the company that runs investing and trading app Dhan, is in early-stage talks to raise around $100 million in a fresh round which will catapult the company’s valuation to $1.2-1.5 billion and earn it a place in the coveted unicorn club, people aware of the developments told Moneycontrol.

While the talks are in early stages, investment banking firm Avendus has been shortlisted to run the fundraising mandate, one of the people cited above said. Dhan, founded by former Paytm Money CEO Pravin Jadhav in January 2021, competes with larger rivals such as Zerodha, Groww, Angel One, among others.

The fund raising comes at a time when Indian stock markets have been touching new highs on the back of robust retail participation, even as the government and the markets regulator has raised the red flag on heightened F&O activity.

India's unicorn drought?

India has minted only three unicorns this year Porter, Krutrim and Perfios as investors continue to tread with caution after the euphoria of 2021.

This however underscores the fact that investors are still deploying capital but have become extremely selective with the kind of companies they are backing. Only a handful of new-age companies, like Zepto, Meesho and others, have raised large amounts of money this year.

For Dhan, the new round will be its largest since its inception in 2021 and even the company’s valuation will increase significantly from around $150 million to a staggering $1.2-1.5 billion.

Raise founder and CEO Pravin Jadhav declined to comment. Avendus did not respond to Moneycontrol’s queries.

US yield curve steepens as bond traders see Fed cuts looming

Yields on policy-sensitive two-year Treasuries slid three basis points on Wednesday, while those on 10-year bonds were up by about the same amount. That pushed the differential between those yields to about 14 basis points, the smallest margin since October 2023.

The US yield curve steepened sharply amid growing calls for the Federal Reserve to start cutting interest rates as soon as next week.

Yields on policy-sensitive two-year Treasuries slid three basis points on Wednesday, while those on 10-year bonds were up by about the same amount. That pushed the differential between those yields to about 14 basis points, the smallest margin since October 2023.

That’s an indication investors see the Fed potentially reducing rates faster and deeper than previously anticipated. Swaps traders still price in more than two quarter-point cuts this year, with the first move likely in September.

But with the central bank scheduled to announce its next decision in a week, pressure is rising for lower borrowing costs. In a Bloomberg Opinion?column, former New York Fed President William Dudley said policymakers should reduce rates at the July gathering.

“The front end has been rallying on the idea the Fed will cut sooner and more than the market had previously been pricing,” said Zachary Griffiths, a senior fixed-income strategist at CreditSights.

Tesla profit margins worst in five years as price cuts, incentives weigh

Tesla on Tuesday reported its lowest profit margin in more than five years and missed Wall Street earnings targets in the second quarter, as the electric vehicle maker cut prices to revive demand while it increased spending on AI projects.

The company said it was on track to produce new vehicles, including more affordable models, in the first half of 2025, although the models will result in achieving less cost reduction than previously expected. Shares fell 8% in after-hours trade.

"Perhaps more than ever in the company's recent history, Tesla's investors need results; those will have to come fast - both for the humanoid robot and for the Robotaxi," said Thomas Monteiro, senior analyst at Investing.com.

The second quarter was tumultuous, with CEO Elon Musk shelving development of an all-new cheaper car in favor of less ambitious lower-cost models and working on creating self-driving taxis, helping to boost shares.

The company also laid off more than 10% of its employees to cut costs, and Tesla said profit was also weighed down by restructuring charges and an increase in operating expenses largely driven by artificial-intelligence projects.

Apple's AI features rollout will miss upcoming iPhone software overhaul

Apple Inc.’s upcoming artificial intelligence features will arrive later than anticipated, missing the initial launch of its upcoming iPhone and iPad software overhauls but giving the company more time to fix bugs.

The company is planning to begin rolling out Apple Intelligence to customers as part of software updates coming by October, according to people with knowledge of the matter. That means the AI features will arrive a few weeks after the initial iOS 18 and iPadOS 18 releases planned for September, said the people, who declined to be identified discussing unannounced release details.?

Still, the iPhone maker is planning to make Apple Intelligence available to software developers for the first time for early testing as soon as this week via iOS 18.1 and iPadOS 18.1 betas, they added. The strategy is atypical as the company doesn’t usually release previews of follow-up updates until around the time the initial version of the new software generation is released publicly.

The stakes are higher than usual. In order to ensure a smooth consumer release of its big bet on AI, Apple needs support from developers to help iron out issues and test features on a wider scale. Concerns over the stability of Apple Intelligence features, in part, led the company to split the features from the initial launch of iOS 18 and iPadOS 18.

Apple announced the new features and operating systems in June at its Worldwide Developers Conference, saying Apple Intelligence would debut as part of iOS 18 and iPadOS 18. The new timing means the AI capabilities won’t be widely launched until a subsequent update to the new operating system. An Apple spokesperson declined to comment.