Of the FTSE 100 shares, Northern Rock and Alliance led the decliners with a loss of 27.9% and 7.3% respectively followed by loss of 5.8% in Kingfishers, 5.3% in Home Retail group, and 5% decline in Persimmon. Carnival led the gainers with a rise of 7% followed by increases of 4.2% in Friends Provident, 2.8% in Sainsbury, and 1.9% in Kazakhmys, and 1.6% in Anglo America.

1:00PM New York, 10:30PM Mumbai – Rupee strengthens to a nine-year high lifting realty stocks and lowering software service companies.

Sensex in Mumbai gained 0.19% or 31.31 16,354.06 to close at a record level for the second day in a row.

The CNX Nifty gained 0.23% or 10.75 to 4,743.10. Mixed trading characterized on the Bombay Stock Exchange with 1,574 stock declining, 1,196 rising, and 56 remained unchanged. The Bombay Stock Exchange turnover was at the elevated level for the second day in a row to 7,033 crore rupees, though decline from 7,486 crore rupees.

Of the 30-stock in Sensex, 13 stocks advanced and 17 fell. IT companies dominated the top five losers in the Sensex. Wipro led the decliners in the index with a fall of 3.2% while Reliance Energy led the gainers with a rise of 4.8%. Mahindra and Mahindra was up 2.6% to 760 rupees, Hindalco Industries added 1.80% to 162 rupees, and ITC increased 3.5% to 193 rupees were among the risers in the Sensex.

Of the BSE stocks, DLF was most top traded and ended with a net turnover of 372.22 crore rupees. Net turnover for Wipro was at 231.32 crore rupees, Indiabulls Real Estate, 137.38 crore rupees, Reliance Natural Resources, 136.54 crore rupees and Reliance Industries, 130 crore rupees.

IT stocks slipped as rupee gained against the U.S. dollar in the wake of 0.5% cut of interest rate by the U.S. on Tuesday. The rupee hit a nine-year high at 39.67 to a dollar. The rupee has advanced 2.5% in the last two days, since the Fed lowered the rates.

Exports accounts for 50% revenue of the software services exporters. Wipro lost 3.2% to 433 rupees on huge volumes of 54 lakh (5.4 million) stock volume. Satyam Computers lost 1.75% to 422 rupees, Infosys Technologies dropped 2.9% to 1,800 rupees, and TCS declined 2.2% to 1,000 rupees.

Speculators lifted real estate stocks on the hope that lower interest rate in the U.S. will attract higher investment in the sector in India. Realty companies surged on the hopes that more investments will be announced by the international investors. Indiabulls Real Estate soared 10% to 577 rupees, DLF jumped 5% to 742 rupees, and Sobha Developers increased 4% to 827 rupees. Separately DLF was in the news that the company is exploring ventures with luxury retailers in Europe and also looking to enter in a partnership with large format retailers. Carrefour is the most talked about name in the rumor mills.

Reliance Energy surged 4.8% to 991 rupees on a heavy volume. News reports suggested that the company is exploring for coal mines in Indonesia, Australia, and Africa to provide a stable source of fuel for its power generating facilities. It plans to raise $12.0 billion in debt over the next five years to expand generation capacity nearly 16 times to 15,000 MW as noted by Capitalmarket.com publication.
Reliance Industries was up 1.02% to 2195 rupees on 5.96 lakh shares, Larsen & Toubro jumped 2.9% to 2,747 rupees. The company is seeking to acquire an undisclosed equity in Feedback Ventures, an integrated infrastructure services firm.


11:00AM New York – 4:00PM London – Three way deal between Dubai, Nasdaq, and OMX involved a stake sale in LSE. Qatar is considering revising its higher offer for OMX.

Borse Dubai, recently formed entity in August of this year from the merger of the Dubai Financial Markets and the Dubai International Finance Exchange has acquired stake in 206 year old London Stock Exchange in a three-way deal with Nasdaq and Sweden’s OMX.

Nasdaq Stock Market Inc has agreed to sell its 28% stake in London Stock Exchange Group to Borse Dubai. Dubai will also take a 19.9% stake in Nasdaq. The two-step complex deal still needs regulatory approval from the U.S. authorities, which is not guaranteed.

Borse Dubai will acquire after paying cash 230 Swedish Kroner or $34.60 per share all of OMX and then sell the entire stake in OMX to Nasdaq for SKr 11.4 billion or $1.7 billion and a 19.9% stake in Nasdaq. The deal values Nasdaq at $41.01. Borse Dubai will also purchase 28% stake in London Stock Exchange from Nasdaq for 14.14 pound or $28.30 per share. Nasdaq will keep its 3% stake in LSE.

Borse Dubai offer for OMX values the entire exchange at SKr 27.7 billion Borse Dubai will have limited voting power of 5% on merged entity of Nasdaq and OMX and will have only 2 of the 16 board seats, according to Nasdaq.

In London trading LSE stock jumped to 1,603 pence and Nasdaq stock in the U.S. increased to $2.06 to $38.08.

Dubai International Finance Exchange, subsidiary of Borse Dubai, will enter into a strategic partnership with Nasdaq and license technology from newly formed Nasdaq and OMX.

The press release from Nasdaq also noted that “Borse Dubai will retain approximately 42.6 million of the NASDAQ shares (representing approximately 19.99 per cent of the fully diluted share capital it receives, restricted to 5.0 per cent of voting rights) with the remaining approximately 18.0 million NASDAQ shares (representing approximately 8.4 per cent of the fully diluted share capital) being held in trust, with an affiliate of Borse Dubai as beneficiary, and managed by an independent trustee. These shares will eventually be sold by the trust. While in the trust, these shares will be voted by the trustee pro rata with the votes of NASDAQ's other shareholders. Borse Dubai will be limited to a five per cent voting stake in NASDAQ, which is the maximum allowed by NASDAQ's certificate of incorporation and bylaws.”

Borse Dubai and Nasdaq have been locked in a bidding war to acquire OMX in Stockholm. The three way deal provides Nasdaq an easy way to sell its stake in LSE and acquire OMX and license its technology to Borse Dubai. Borse Dubai is able to acquire a stake in Nasdaq and LSE blunting another rivalry with Qatar, Middle Eastern nation.