NSE tied up with Six regional stock exchanges

NSE has tied up with six regional stock exchanges. The move will help bolster its volumes and turnover, given the fact that it accounts for close to 70% of the total turnover in the local equities market. Close to 4,000 companies are listed on the 22 RSEs in the country.
There is virtually no trading in all these exchanges, barring the Calcutta and the UP stock exchanges. Even there, business has slowed considerably. Some of these exchanges were in talks with the BSE as well for a tie-up. However, the norms stipulated by BSE were reckoned to be stringent. The six RSEs have chosen to have a tie-up with the NSE as the draft MoU came without any conditions, said the executive director of an RSE.
From the perspective of the regulator and policy managers, the move may be welcomed coming as it does when the future of these exchanges is being debated. A committee headed by Sebi member G Anantharaman had laid out the future course of action for these exchanges. The committee had said that the recognition of those RSEs that have the potential and willingness to participate in any alternate trading platform may be continued.
The tie-up will enhance NSE’s turnover. The daily turnover of NSE and BSE is close to Rs 25,000 crore. Of this, the turnover in the cash segment is around Rs 9,000 crore in the NSE and Rs 5,000 crore in the BSE. The balance Rs 11,000 crore is the turnover in the F&O segment. NSE accounts for almost 99% of the F&O segment turnover.

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Sensex on record breaking reaching 13000

Continuing its firm trend for the third straight session on Monday, the benchmark index rose by 86 points in early trade on the Bombay Stock exchange (BSE) driven by rally in blue-chip stocks on buying by foreign funds.
Market analysts peg the upswing to firm global markets, expectations of good second quarter results and also all-time low oil prices.
The BSE 30-share index, Sensex, had closed over 198 points higher on Friday. However, on Monday, it opened 86.32 points up at 12,822.74, another new high in the first five minutes of trading.
Heavyweights from commodity, engineering, banking, software and FMCG sectors aided the strength. But IT, telecom and FMCG led the rally, with all major indices except auto and pharma trading in the green. The top select auto and pharma stocks, however, lost ground.
Some of the major gainers on the BSE and NSE were ACC, Bajaj Auto, BHEL, Reliance Energy, Reliance Industries, Dr Reddy's, HDFC Bank, ITC Ltd, Infosys Technologies, ONGC, Tata Consultancy, Wipro, Tata Steel, Tata Motors and State Bank of India

Amongst the banking stocks, HDFC Bank was up 2 per cent, UTI Bank up 4 per cent and ICICI Bank was marginally up leading the pack of gainers. The ensuing RBI mid-term monetary policy, due later this month is, however, a cause of concern for investors in the sector.
The RBI may not take a cue from the US Federal Reserve's decision against a rate hike. This is because the inflation figure soared past the 5 per cent mark in September 5.2 per cent, after the economy expanded at a faster-than-expected rate of 8.9 per cent YoY in 1QFY07. It is therefore expected that the RBI may hike its benchmark reverse repo rate for the fourth time this year.
The US markets also closed on a buoyant note Friday evening as the benchmark indices- he Dow Jones, the S&P 500 and the NASDAQ, all three closed higher. The Asian indices were currently trading a mixed bag.

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