India Morning Report: Markets out of the 7800 orbit?

The good index run aagain seemingly breached the ceiling put in place by new levels of 7800 and has crossed into virgin territory to target 8000 – 8350 in the next 2-3 months. Select buying has indeed completed reweighing the few fundamentally stocks up and also corrected a lot of unhealthy speculation built up in residential construction stocks, all lying in hock and weakening the buy sentiment without any concomitant improvement in demand

Auto loan companies have been an early focus in this rally since last year and prospects for them continue to improve. However, Indian automobile markets oevrall continue to operate in a capped uptick in demand scenarios limited by the continuing incapacity of Indian businesses to interest a larger segment of the potential consumer markets

Cyclicals will continue to bring rewards to select blue chips as the mid caps have run out of interest from bulls looking for a new sectoral winner or two. The cut in IDFC probably shows the exit of the residential construction pairs and will probably get a new lease of life to 230 levels in the week. Growhth in SBI and YES wil tally up behind ICICI Bank and HDFC Bank

ITC and Bharti continue to be interestingly poised for a fresh breakout. The interest in Cement stocks is likely to wane till concrete month end reports of demand improvements follow with news of monsoons taking their toll on construction sentiment as well

Asia and US Markets moves on Monday will aid the sentiment in equities as India inflows cross the $24 Bln mark this year



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