Exit on short-term rallies; profit upturn seems far away Anticipation of post monsoon cement price increases, receding risk of government intervention and low stock valuations offer room for a near-term rally in cement stocks, in our view. We recommend that investors exit on possible short-term rallies as any U-turn towards sustainable profit improvement seems far away. Demand growth seems weak (industry capacity utilisation in Aug ’08 was the lowest in last 3- 4 years), and we expect cement prices to fall from end-FY09 onwards owing to rising industry capacity. ACC is our least preferred pick in the sector