CORRECTION?

On the back of HANG SENG falling 5% the Indian bourses reacted and front liners cracked. The HANG SENG it is understood, cracked due to further bad news regarding sub prime turmoil. However it is now an acknowledged fact that the Indian banks and financial houses have near 0 exposure to sub prime and there should be no reason for our markets to react the way others do. But these blips in other markets do affect the sentiments here. We foresee no major reaction in our market. The SENSEX should honour the support around 19200.
Large caps have had a great run and the markets seem to be in a mood to consolidate but this will spark a rally for mid caps and small cap stocks. NIFTY 6200 mark seems a possibility on Muhurat session.
So much for the market but there are some stocks which look very strong for long term investment JSPL, STERLITE, TATA STEEL, SUN PHARMA, PANTALOON, GLAXO are the stocks we like. It is very unlikely that the Govt would allow appreciation of Rupee unchecked because it is affecting the large IT services industry and they would have to look for employees from China and Phillipines at the cost of Indians. We therefore have a strong view that there would be some measure to safeguard these industries. The valuations of IT pack are becoming mouth watering.