Sensex in last leg of correction, loses 37 points
Mumbai: In a day that witnessed wild swings on alternate bouts of sizeable selling and buying, the stock market appeared to be on the last leg of a downward correction as bluechips rebounded sharply from a 262-point fall in the Bombay Stock Exchange (BSE) sensex in early trades. The sensex, dropped to a low of 4,110 and recovered swiftly to close at 4,335, netting a loss of just 37 points over the previous level, as value-based buying by institutional investors led to a sharp improvement in equities from intra-day lower levels. Also, reports that the finance minister, while moving the Finance Bill for ’99-00, had announced a slew of sops for the information technology industry as well as launched direct tax proposals to promote investments in housing and research and development activities in knowledge-based industries helped boost sentiment.

Despite the recovery, declining issues led the advancing ones by 847 to 562, reflecting a weak undertone.

Similarly the S&P CNX Nifty also ended the day with a loss of 17.40 points to close at 1,316.05 points. While there were 74 advances and 64 declines of the 140 stocks traded in the forward group at the BSE, the NSE recorded 30 declines and 20 gainers.
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Bangalore bourse launches NSE connectivity
Bangalore: Through its newly floated subsidiary, BgSE Financials, the Bangalore Stock Exchange has introduced trading on the National Stock Exchange to its members.

The multi-exchange facility was inaugurated by Mr. D.R. Mehta, Chairman, Securities and Exchange Board of India (SEBI). Mr. Mehta who said it would become necessary for the regional exchanges to tie up with bigger exchanges for survival.

BgSE has subscribed to 51 per cent capital of its subsidiary while the balance is contributed by the members. Around 100 members are expected to take up trading on NSE within four weeks.

BgSE is incidentally the second exchange to offer NSE trading facility to its members. The exchange also has plans to offer BSE trading facility.
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London and German bourses to merge to create new giant
London: In what is seen as the script to creating a regional counterweight to the US giant bourse, the New York Stock Exchange, the London stock exchange and Germany's Deutsche Boerse have agreed to merge their share-trading operations. This will create a combined exchange that will be Europe's largest stock market.

The two national exchanges will each own 50 per cent of the new entity, which is to be called iX, for International Exchanges. Its headquarters are to be in London. Under the merger agreement, shares in blue-chip companies will be traded in London, while shares in high-tech firms will be traded in Frankfurt.

The Anglo-German union includes a formal co-operation agreement with the US Nasdaq market. The London exchange did not give specifics on this link-up with Nasdaq but said it did not involve mutual ownership. The merger brings to a climax two years of efforts by the London and Frankfurt exchanges combined. In 1998, they began trying to form the hub of a pan-European stock market and later enlarged their plan to include six other national stock markets.
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