The overall increased demand will lead to better price realisations and we see many of the large players, doing much better. There will also be increased consolidation in the cement industry with consoliidation of the fragmented capacities,'' emphasised Madgavkar. In the domestic market if you are seeing improved offtake in auto then there will be improved offtake of auto ancillaries as well. The sector will also benefit from increased exports, which is already being witnessed. The software sector is witnessing good growth rates which are likely to continue between 40 per cent and 70 per cent rates of growth.
Investors have to be very careful about the number of IPOs that are coming out in software.
In this scenario, given the fact that the prices are on an uptrend we have to see the sustainability of the prices in a global scenario. Therefore we see a lot of liquidity in the banking system in the next few months'' This will keep the interest rates in check. However, he does not see the spread between AAA bonds and gilts reducing from the current level. Going forward what could happen is that there will be a reduction in interest in the yield curve for companies with a lower than AAA rating. Accompanied with the economic recovery and better cash flows these companies who are below AAA will get better borrowing avenues.