Bombay
Stock Exchange (BSE) has been acclaimed to be the largest out of 22
stock exchanges in India. In 1875, BSE was established as Association of
Persons (AOP). Today, it is the oldest and largest stock exchange, not
only in the country, but in Asia as well. With over 6,000 stocks listed,
this Stock Exchange of Mumbai enumerates for more than two-third of the
total trading volume in India. It is also the first stock exchange to be
recognized by the Government of India, under the Securities Contracts
Act, 1956.Since its establishment, Bombay Stock Exchange has played a vital role in the growth of capital markets in India. Another great truth about BSE is that it is the world's fifth largest stock exchange, with a market capitalization of $466 billion. It makes use of BSE SENSEX, which is an index of 30 big and developed stocks. The index provides an evaluation of the comprehensive performance of BSE and is very much tracked throughout the world.
BSE Sensex
The Bombay Stock Exchange Sensitive Index is a value-weighted index, calculated out of 30 stocks taking April 1979 as its base. These 30 stocks depict the largest and most active trading stocks from various sectors. Around one-fifth of BSE's market capitalization is related to these companies. On 1st April 1979, the base value of the Sensex is 100 while its base year is 1978-79. The BSE authorities assess and revise composition of the Sensex at intervals, to ensure that it reveals the existing market conditions.
Other Aspects of BSE
Besides the individual stocks, Bombay Stock Market deals in derivatives, stock futures and options, index futures and options, and weekly options as well. The debt market is an additional feature of BSE, which offers investment solutions for growth and development. BSE speculates that the retail market will fetch great prospects to individual investors, by way of better diversification. Its nation-wide reach makes this market present across 417 cities and towns of the country.
Interesting facts about Bombay Stock Exchange