Daily Call - Nov 5 2008

US markets rose on hopes of uncertainty getting replaced by firm action by the new president of United States Mr. Barack Hussein Obama, Jr. The new US president is likely to raise taxes on rich, spend it on packages for middle class and spur their consumption and take long lasting actions to revive US economy.



Banks and real estate stock rallied yesterday on hopes of FM inspired cut in interest rates by banks reviving their business prospects. Banks margins are going to be under pressure as credit growth is unlikely to keep pace with deposit growth this quarter for sound banks not withstanding cut in SLR and CRR. IT stocks are going to be in a tough environment as President Obama's anti off-shoring stance coupled with delay in IT budgets is heady cocktail.



Next meaningful resistance comes in 11257. We continue to prefer Power, PSUs and mid caps.