Sensex to test the 11,000 mark, as investors look for bargains

Stocks on Dalal Street are likely to open higher and celebrate Obama's
victory with a 2 to 3 percent gain for the day. Watch out for IT
stocks, as they have underperformed other sectors on fears for a cut
down in outsourcing following Obama's presidency.

U.S. stocks rallied Tuesday as millions of Americans cast ballots to
determine whether Republican John McCain or Democrat Barack Obama wins
the presidency.After surging as much as 330 points, the Dow Jones
Industrial Average ended at 9,625.28, up 305.45 points, or 3.3%.

Asian stocks started off with a bang inspired by the rally in US
markets. Japan's Nikkei gained nearly 3 percent in the opening trade
even though the gross domestic fell 0.4% in September compared with
the previous month, marking a second consecutive monthly decline.

State-owned commercial banks have agreed to cut benchmark prime
lending rates 0.75 percentage points to fuel growth. The decision came
out after 28 bank chairmen met Finance Minister P Chidambaram last
night.

While street started partying, there is a slew of news flowing from
corporate world regarding the lay offs. Cell phone major Motorola,
Reliance Ind and Satyam were among the prominent companies that have
announced lay offs this week.

The stock of Sun Pharma might see some pressure as there are news
report that US FDA might be looking to conduct quality checks in some
of its facilities and have already shut down one of its manufacturing
arm in Detroit.

Realty stocks might take a breather as the leadership might turn to
other sectors like Engineering and Commodity stocks.Cairn India is our
favorite for the day as the stock has great value and might see some
early action as the crude prices firmed up on Nymex today.

Market Close Box:
BSE Sensex 10631.12 293.44
NSE Nifty 3142.10 98.25
USD Rs.48.62
Oil Nymex $70.16

B.Karthick
Research Analyst.
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