It would , however at best be just the best laid plans of men and mice having gone awry on Friday, with Oil bill worries spooking the Rupee.
That means the index is a huge buying opportunity, with another 10% cut left in Real estate companies but the banks having more or less bottomed out at one go on Friday. Domestic Pharma would shine and the Rupee might well see retracement to 59 levels as the situation in Iraq keeps more negative implications on the rest of Asia like a Damocles sword but India’s already discounted currency has again not much to worry esp with a minimalist budget plan in the works again, treating the fisc as sacred.(update,06/20: and raising fares in the railway bill in advance as planned by a previous regime)
Also available avenues for infra and other corporate debt at less than 6% is likely to fuel the investment spending adds with a nicely humming Global IPO engine letting business fly.
Nifty shorts will have dug in on 7700 levels on Friday but with the call whittling down to 50% from its peak last week, further additions at 7500 levels would find it foolhardy and revert to selling Puts as well thought the markets will have to continue under the shorted 7700 levels as a guide for the week. The correction was a reality check and a back breaker for the forth in Midcaps and the Nifty junior (4% last week) and the 7500 support is unlikely to help back mid cap bets except for well governed growth candidates. Glenmark and Divis Lab look good to outperform and a rally is in the works on NBFCs led by LIC Housing Fin and IDFC