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Nasdaq to enter Indian market
MUMBAI: The BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) could soon face international competition in their backyard.
Nasdaq, one of the leading exchanges in the US, is planning to enter the Indian equity exchange space by integrating the networks of regional stock exchanges in the country.
According to sources, Nasdaq has recently made presentations to five regional stock exchanges (RSEs) - Ahmedabad, Bangalore, Kochi, Chennai and Vadodara - for setting up a national level equity exchange.
Nasdaq, which operates through a 'quote driven trading system', is planning to introduce the same trading system in the country by integrating RSEs.
Under this system, market makers are obliged to give two-way quotes to the system. (Full Story)
Dollars & rupees to keep flocking the markets
Corporate earnings are expected to remain encouraging, and strong projected economic growth coupled with supportive policy initiatives is likely to attract more money flow into the capital markets, according to the Economic Survey 2007-08. At the same time, the government has also stressed on the need for caution and better understanding on the part of individual investors when it came to stock market investments.
"Investor awareness is equally important from the market stability angle as investment in equities could be based on incomplete analysis and guided by short term speculative gains," the Survey notes. "Individual investors need to take informed decisions and remain cautious. They would do well to resist from commonly observed "herd mentality" and "panic" in their buying and selling operations," it added. (Full Story)
India Needs $500 Billion Spending on Infrastructure
Feb. 28 (Bloomberg) -- India needs to nearly double spending on roads, ports, power and other infrastructure over the next five years to end blackouts, ease congestion for the movement of goods and people and sustain record economic growth.
Infrastructure spending may increase to 9 percent of gross domestic product in the five years ending March 31, 2012, from about 5 percent now, the Economic Survey, a finance ministry report, said before tomorrow's budget announcement, reiterating a target that India set last year.
The South Asian nation needs to raise spending to sustain a targeted 9 percent annual growth rate for the next five years. Congested ports and roads and power shortages add to the cost of operations for companies and shave off 2 percentage points from growth in Asia's third-largest economy. (Full Story)
Chinese co plans big-bang India investment
BANGALORE: China's largest investment in India is slated to come up in Karnataka with the setting up of Xindia Steels, a joint venture between the $11-billion Xinxing Group (Shanghai Exchange-listed), China National Metal Products (part of China Minmetals), Manasara Investments and the Kelachandra Group, along with Sigma Minmet. The total investment is expected to be over Rs 8,000 crore over 5-10 years.
Xindia Steels intends to put up, at a cost of Rs 400 crore in the first phase, a 2-million tonne iron pelletisation project at Koppal in Karnataka. According to Gopi Ramanathan, director, Xindia Steels, the company has acquired Hampi Steel, whose iron ore project had been approved by the Karnataka government high-level committee three years ago, but the project had not taken off. (Full Story)
Never mind shocks, FIIs still like India
The government has expressed confidence in sustaining the cross-border portfolio investment in the Indian capital market.
It has also asked banks to cut interest rates to maintain growth momentum of the economy.
In the Economic Survey 2007-08, government said since India's growth performance is relatively better among the emerging economies, it would continue to attract significant investments in the equity market from abroad.
In the last one-and-a-half months, Indian stock markets took a severe beating because of the huge fund outflow, driven by foreign institutional investors (FIIs). Since January 14, 2008, FIIs have sold $3.30 billion of equity. (Full Story)
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