The great massacare at the stock markets
Mumbai: It was as if a hurricane had swept through the place. Yes indeed, hurricane Nasdaq quite literally wrecked the stock exchange, already on weak foundations thanks to the notices issued by the income tax department to the foreign institutional investors, like never before.

It was a ‘black Tuesday’. The markets began on a weak note pursuant to the tax notices. The crash at Nasdaq, thanks to the ruling against Microsoft and the negative voices of market chieftains like Mike Mobius, saw stocks on the BSE crash like nine-pins. The BSE sensex fell a whopping 361 points to close at 4,691.46 points. This brings the total loss of points in the last seven weeks to 1,460. At the NSE, the Nifty closed at 1,428.10 points, a loss of 7 per cent over its previous close. 

More than 40,000 sell orders could not be executed. Unfortunately, the rise in the Dow Jones Industrial average did not do anything to the old economy stocks on the Indian bourses as they were pulled down the heights by the new economy infotech stocks that brought about black Tuesday. With almost all major stocks reaching their lower circuits, as a result of which trading in these scrips stopped, players found no exit route to help them out. Today's major losers were HLL, Dr. Reddy's, BSES, Silverline, SBI, Hindalco and Reliance. But the plunging market had its shares of gainers _ HDFC, Colgate, Grasim, BASF, Tata Tea and M&M.

While some market leaders thought that the tax notices would hamper India’s ability to attract investment into the secondary markets, a majority of the market operators thought that there was nothing to worry about and that the tax notices were routine in nature.

In the meanwhile, the ministry of finance has put on hold any action against the FIIs till the matter is examined in detail by the tax authorities. The clarifications came as fire-fighting measures initiated by the ministry in light of the slaughter being faced at the stock markets.
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Interconnected Stock Exchange to be a reality soon
Mumbai: The Inter-connected Stock Exchange of India (ISE), an ambitious project to connect the major exchanges across the country on a single network to make inter-exchange deals possible, today launched a trading product called iAccess. This product will enable member dealers to place orders on two different exchanges on one screen and with a single connectivity. The product, currently restricted to dealers in Mumbai, where more than 450 applications were received by the ISE, will enable investors in Mumbai to access newer markets.

The ISE has already enrolled over 500 from all across the country and these dealers along with the traders from the 13 participating exchanges will be able to access the ISE and NSE through iAccess.
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