Rate cut breathes fresh life into cyclicals; Sensex leaps 52 points
Last weekend's rate cut move by the RBI fuelled cyclical stocks back into limelight on Monday. The mood was upbeat for cyclicals, while technology stocks were hammered and the divide was clear.

Recovery unlikely to be sustained
A combination of factors on Monday buoyed up the Sensex to 5053, posting a gain of 52 points. As the slide-down in software continued unabated, investment in cyclicals got triggered. Funds appear to be getting shifted sector-wise.

IT sector to stay down in the medium term
On Friday, the Nasdaq composite index recorded a gain of more than 3%. Despite this gain, the Monday opening for software stocks on the Indian bourses was very weak, and immediately after the opening, almost all cream software companies' stocks hit the lower circuit.