Real Estate stocks are trading in the red led by DLF Limited and D B Realty. DLF Limited has announced results for the quarter ended December 2011. On a consolidated basis, the company has reported a 17.9% YoY decline in total income and a 44.5% YoY decline in net profits. The drop in profits were due to slowing sales and rising commodity costs as 13 interest rate hikes by the Reserve Bank Of India (RBI) pushed up the cost of repayments and deterred potential homebuyers. The company's net debt fell by Rs 1.6 bn during the third quarter of this fiscal to Rs 227.5 bn and it expects to raise around Rs 60 bn by the end of next fiscal from sale of non-core assets. The company and its subsidiaries have received an additional tax notice of Rs 11.3 bn for the 2009-10 assessment year.
PSU Banking stocks are trading weak led Bank of Maharashtra and Syndicate Bank. As per a leading daily, Bank of Baroda is expecting its business to grow by 24% YoY by the end of March 2012. The PSU bank is aiming to achieve a total business of more than Rs 6,500 bn by March end. The bank is targeting a 20% growth in domestic credit for this year. It grew by 19% till the end of December 2011. The growth in global credit was 24% to 25%. Bank of Baroda expects to maintain same kind of growth rates in the future too. As per the management, the central government will infuse a capital of Rs 7.75 bn in the bank. With this, the capital adequacy ratio of the bank by the end of the year is expected to go up to 14% from the current 13.45%.