Stock market spurred by Kargil developments
Mumbai: Dalal Street rejoiced over the cessation of hostilities on the border with a bounce of 223 points in the 30-stock Sensex of the Bombay Stock Exchange. Market watchers were quick to point out that this was the biggest single-day leap of the Sensex since 17 June 1998. In rising to this level, the Sensex also crossed the 4,500-mark for the first time since 7 August 1997 and closed at 4585.63, just 58 points away from the pinnacle of 4,643.31.

The exchange's market capitalisation too went up remarkably to Rs 6,41,360 crore, the highest ever reached, from Rs 5,63,490 crore.

In all, 68 scrips in the specified group, including 16 index-weighted stocks, went past the circuit breaker. In the cash group, the number of such stocks was even higher -- more than 250.

There were record volumes both on the BSE and the National Stock Exchange (Rs 5,574 crore), which led the broadbased indices -- BSE 100 and BSE 200 -- higher by 5 per cent each to 1981.64 and 453.25.

Apart from the end of Kargil hostilities, market analysts attributed the sudden thrust to other positive factors, including reports of a stronger economy, leaner corporate structures, inflation at a 20-year low, and a softer interest regime.
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Sebi removes exemption margin
Calcutta: The Securities and Exchange Board of India has done away with the exemption limit margin collected by stock exchanges.

Small brokers will be affected by the decision. Sebi has ruled that as margins payable towards mark-to-market, volatility and incremental carry forward shall be paid in full, there is no requirement for the threshold or exemption limit.

Till now, small brokers used to pay margins beyond an exposure of Rs 2.5 lakh, an amount they had deposited with the exchanges as base minimum capital. With this shelter now gone, they will have to pay every bit of margin applicable to their transactions. 
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