Problems for DLF

DLF is now facing more problems. Just last week it announced that their profits are down by 93% this year. And now the IT department has slapped a 400 cr notice on the India's largest real estate company. The real estate developer plans to challenge the government’s order. DLF shares fell 0.45% to 244.9 on the Bombay Stock Exchange, eventhough the Sensex rose by 1.37% on Thursday. The additional tax outgo will put the company in a difficult position. Recently, DLF had exited from the 9,300-acre Bidadi Satellite Township Project near Bangalore. Today, the Bangalore city corporation, has issued a public notice against investing in DLF’s proposed complex in bannergatta road, bangalore. These are some difficult times for DLF.

market updates

Today domestic markets have with a huge positive gap of over 500 points along with the majority of Asian which opened with phenomenal gains on the back of positive cues from US markets and the long weekend previously for the Indian market. The market was closed on las week on Thursday(elections) and Friday(May day).

However, political uncertainty, with polling for India's 15th Lok Sabha underway, say see some volatility in the market for a couple of weeks. Increasing oil prices also pulled along with it the energy shares prices and fresh economic data suggested that the key parts of the economy could be stabilizing. For traders this is a very good time to exit many stocks and may re-enter after a a couple of days. For investors, the first bull rally is not the right time to re-enter the market.

It is a good opportunity to exit shares like DLF which announced last friday that its profits decreased 93% from the last year. DLF updates

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slowdown hits DLF badly

The current economic slump has hit DLF Ltd, India's largest listed real estate firm very baldy. It reported a 93% slump in quarterly profit. The property prices tumbled and it sold fewer homes and office buildings space in an economic downturn. DLF said that its consolidated net profit fell to INR 159 crore in its fourth quarter ended March from INR 2,177 crore a year ago. This is surely going to have huge impacts on the Indian economy which has shown little effect of the global meltdown.

In a quarter that saw demand evaporate in all segments, residential and commercial, sale and leasing. Revenue fell by 69% to INR 1,350 crore from INR 4,370 crore.

While residential demand is expected to improve, the outlook for the commercial business continues to remain weak. This has forced DLF to launch more mid-income housing projects in Kochi, Bangalore and Hyderabad, among other cities, and divest stakes in some hotel projects to generate liquidity in the current fiscal.