As FE reported this AM, most of the hopes of growth returning this year are already predicated to next year as far as demand for project financing and Capex companies like Siemens, L&T and BHEL are concerned. The latter are indeed being jettisoned from portfolios as their weak financial model is exposed in the tough times extended in the markets. However indices are strongly up at new levels of 7900 and 26300-500 respectively on the Nifty and Sensex, The morning looks rosier for HDFC Bank as one hoped a week back and cyclicals are indeed ready and waiting for any big series surge in September though markets will close this one between 7800 and 7950
IDFC indeed seems to be back in favor with GMR infra and Reliance group stocks on the Relinfra connection giving good positive cues to a fairly revalued market where the old has indeed given way to the new.
The early breakdown in the auto pack is probably equally linked to the end of month sales prognostication not expected to be really strong, and the early start to the festivities craising most of the maruti’s and the hero’s to their speculatively untenable levels