Stock Market of India

Introduction
Stock markets refer to a market place where investors can buy and sell stocks. The price
at which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock).

Let us take an example for a better understanding of how market forces determine stock
prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an
upward movement in its stock price. More and more people would want to buy this stock
(i.e. high demand) and very few people will want to sell this stock
at current market price (i.e. less supply). Therefore, buyers will
have to bid a higher price for this stock to match the ask price
from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if
there are more sellers than buyers (i.e. high supply and low demand) for the stock of
ABC Co. Ltd. in the market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock exchanges to make a
transaction but now with the dawn of IT, most of the operations are done electronically
and the stock markets have become almost paperless. Now investors dont have to gather
at the Exchanges, and can trade freely from their home or office over the phone or
through Internet.

History of the Indian Stock Market - The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old
history.

18th East India Company was the dominant institution and by end of the century,
Century busuness in its loan securities gained full momentum
1830's Business on corporate stocks and shares in Bank and Cotton presses started
in Bombay. Trading list by the end of 1839 got broader
1840's Recognition from banks and merchants to about half a dozen brokers
1850's Rapid development of commercial enterprise saw brokerage business
attracting more people into the business
1860's The number of brokers increased to 60
1860-61 The American Civil War broke out which caused a stoppage of cotton
supply from United States of America; marking the beginning of the "Share
Mania" in India
1862-63 The number of brokers increased to about 200 to 250
1865 A disastrous slump began at the end of the American Civil War (as an
example, Bank of Bombay Share which had touched Rs. 2850 could only be
sold at Rs. 87)

Pre-Independance Scenario - Establishment of Different Stock Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at
 a street (now well known as "Dalal Street") for the purpose of transacting
business.
1875 "The Native Share and Stock Brokers' Association" (also known as "The
Bombay Stock Exchange") was established in Bombay
1880's Development of cotton mills industry and set up of many others
1894 Establishment of "The Ahmedabad Share and Stock Brokers' Association"
1880 - 90's Sharp increase in share prices of jute industries in 1870's was followed by a
boom in tea stocks and coal
1908 "The Calcutta Stock Exchange Association" was formed
1920 Madras witnessed boom and business at "The Madras Stock Exchange" was
transacted with 100 brokers.
1923 When recession followed, number of brokers came down to 3 and the
Exchange was closed down
1934 Establishment of the Lahore Stock Exchange
1936 Merger of the Lahoe Stock Exchange with the Punjab Stock Exchange
1937 Re-organisation and set up of the Madras Stock Exchange Limited (Pvt.)
Limited led by improvement in stock market activities in South India with
establishment of new textile mills and plantation companies
1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange
Limited was established
1944 Establishment of "The Hyderabad Stock Exchange Limited"
1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi
Stocks and Shares Exchange Limited" were established and later on merged
into "The Delhi Stock Exchange Association Limited"

Post Independance Scenario

The depression witnessed after the Independance led to closure of a lot of exchanges in
the country. Lahore Estock Exchange was closed down after the partition of India, and
later on merged with the Delhi Stock Exchange. Bnagalore Stock Exchange Limited was
registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in
a miserable state till 1957 when they applied for recognition under Securities Contracts
(Regulations) Act, 1956. The Exchanges that were recognized under the Act were:
1. Bombay
2. Calcutta
3. Madras
4. Ahmedabad
5. Delhi
6. Hyderabad
7. Bangalore

8. Indore
Many more stock exchanges were established during 1980's, namely:
• Cochin Stock Exchange (1980)
• Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
 • Pune Stock Exchange Limited (1982)
• Ludhiana Stock Exchange Association Limited (1983)
• Gauhati Stock Exchange Limited (1984)
• Kanara Stock Exchange Limited (at Mangalore, 1985)
• Magadh Stock Exchange Association (at Patna, 1986)
• Jaipur Stock Exchange Limited (1989)
• Bhubaneswar Stock Exchange Association Limited (1989)
• Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
• Vadodara Stock Exchange Limited (at Baroda, 1990)
• Coimbatore Stock Exchange

• Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not
include the Over The Counter Exchange of India Limited (OTCEI) and the National
Stock Exchange of India Limited (NSEIL).

Government policies during 1980's also played a vital role in the development of the
Indian Stock Markets. There was a sharp increase in number of Exchanges, listed
companies as well as their capital, which is visible from the following table:

S. 194 196
197 197 198
As on 31st December 1985 1991 1995
No. 6 1 1 5 0
1 No. of Stock Exchanges 7 7 8 8 9 14 20 22
112 120
159 155 226
2 No. of Listed Cos. 4344 6229 8593
5 3 9 2 5
150 211
283 323 369
3 No. of Stock Issues of Listed Cos. 6174 8967 11784
6 1 8 0 7
181 261 397
4 Capital of Listed Cos. (Cr. Rs.) 270 753 9723 32041 59583
2 4 3
Market value of Capital of Listed 129 267 327 675
2530 11027
5 971 478121
Cos. (Cr. Rs.) 2 5 3 2 09
Capital per Listed Cos. (4/2) (Lakh
6 24 63 113 168 175 224 514 693
Rs.)
Market Value of Capital per Listed
7 86 107 167 211 298 582 1770 5564
Cos. (Lakh Rs.) (5/2)
Appreciated value of Capital per
8 358 170 148 126 170 260 344 803
Listed Cos. (Lak Rs.)

Trading Pattern of the Indian Stock Market

Indian Stock Exchanges allow trading of securities of only those public limited
companies that are listed on the Exchange(s). They are divided into two categories:
Types of Transactions
The flowchart below describes the types of transactions that can be carried out on the
Indian stock exchanges:
Indian stock exchange allows a member broker to perform following activities:
• Act as an agent,
• Buy and sell securities for his clients and charge commission for the same,
• Act as a trader or dealer as a principal,

• Buy and sell securities on his own account and risk.

Over The Counter Exchange of India (OTCEI)
Traditionally, trading in Stock Exchanges in India followed a conventional style where
people used to gather at the Exchange and bids and offers were made by open outcry.

This age-old trading mechanism in the Indian stock markets used to create many
functional inefficiencies. Lack of liquidity and transparency, long settlement periods and
benami transactions are a few examples that adversely affected investors. In order to
overcome these inefficiencies, OTCEI was incorporated in 1990 under the Companies
Act 1956. OTCEI is the first screen based nationwide stock exchange in India created by
Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial
Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of
India, General Insurance Corporation and its subsidiaries and CanBank Financial
Services.

Advantages of OTCEI
• Greater liquidity and lesser risk of intermediary charges due to widely spread
trading mechanism across India
• The screen-based scripless trading ensures transparency and accuracy of prices
• Faster settlement and transfer process as compared to other exchanges
 • Shorter allotment procedure (in case of a new issue) than other exchanges
National Stock Exchange
In order to lift the Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high powered Pherwani Committee,
the National Stock Exchange was incorporated in 1992 by Industrial Development Bank
of India, Industrial Credit and Investment Corporation of India, Industrial Finance
Corporation of India, all Insurance Corporations, selected commercial banks and others.

NSE provides exposure to investors in two types of markets, namely:

1. Wholesale debt market
2. Capital market

Wholesale Debt Market - Similar to money market operations, debt market operations
involve institutional investors and corporate bodies entering into transactions of high
value in financial instrumets like treasury bills, government securities, commercial papers
etc.

Trading at NSE
• Fully automated screen-based trading mechanism
• Strictly follows the principle of an order-driven market
• Trading members are linked through a communication network
• This network allows them to execute trade from their offices
• The prices at which the buyer and seller are willing to transact will appear on the
screen
• When the prices match the transaction will be completed

• A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE
• Integrated network for trading in stock market of India
• Fully automated screen based system that provides higher degree of transparency
• Investors can transact from any part of the country at uniform prices

• Greater functional efficiency supported by totally computerized network

Share Market Mutual Funds Share Tips Widgets Mobile Toolbar Companies Learning
Centre Insurance Site Map Links About Contact Disclaimer
History of the Indian Stock Market
By James Rada Jr., eHow Contributor

History of the Indian Stock Market

To speak of the Indian Stock Market is a bit of a misnomer because there is no one single
stock exchange in India. In fact, there are 21 stock exchanges conducting business across
that country. However, the Bombay Stock Exchange is the oldest exchange in the country
and the National Stock Exchange is the largest stock exchange in India. The two
exchanges also account for the majority of traded shares in India.

Bombay Stock Exchange

1. In 1875, 318 people formed the Native Share and Stock Brokers Association in
India. This was eventually renamed the Bombay Stock Exchange as the number
of stock exchanges in the country grew. The Bombay Stock Exchange was the
first exchange to receive official recognition from the Indian Government in 1956.

National Stock Exchange

2. The National Stock Exchange is also located in Bombay. It was created based on
a report of the High Powered Study Group on Establishment of New Stock
Exchanges. The report recommended a national stock exchange that would give
all investors across India equal access. With the encouragement of the Indian
Government, the National Stock Exchange was incorporated in November 1992,
and recognized as a stock exchange in April 1993.

Sensex
3. The Indian Stock Index is called the Sensex. It is comprised of 30 stock-sensitive
companies and was first compiled in 1986 by the Bombay Stock Exchange. The
companies come from 13 industries and are chosen to be representative of the
businesses in India. It serves much like the Dow Jones Industrial Index or the
S&P 500 Index in America. The Sensex crossed 1000 for the first time in 1990.
Two years later, the index nearly quadrupled because of Financial Minister Man
Mohan Singh's financial policies. The index passed the 8000 mark in 2005. It
peaked at 20,000 in January 2008.

The Market's Volatility

 4. The Indian Stock Market has been a volatile one, subject to large swings for a
large variety of factors. Monsoons, political power shifts and even the winner of a
cricket match have all been reasons for the market to jump or drop over the years.

Harshad Mehta Scam

5. In 1992, it was discovered the Harshad Mehta, a huge player in the Indian Stock
Markets, had fraudulently diverted bank funds into 270 million shares of 90
companies. It is estimated that around 12 million investors went bankrupt because
of this fraud and the Sensex lost 570 points.

This situation led to the creation of the Securities and Exchanges Board of India,
which enforced regulations and guidelines. This helped the Indian stock market
regain its footing and move forward.

The Market Today

6. India has the second largest number of companies being traded on its stock
exchanges, second only to the United States. The Bombay Stock Exchange has
more companies listed than any other exchange in the world (4700 companies in
2007). The growing popularity of investing in the stock market in India has also
led to more middle-class investors and on-line trading of Indian stocks. The
number of Indians invested in the stock market is around 30 million.

Read more: History of the Indian Stock Market | eHow.com

http://www.ehow.com/about_5089024_history-indian-stock-market.html#ixzz14nSaIrXN
Bombay Stock Exchange
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Bombay Stock Exchange

Type Stock Exchange

Location Mumbai, India

Coordinates 18°55′47″N 72°50′01″E / 18.929681°N

72.833589°E
Founded 1875
Owner Bombay Stock Exchange Limited
Key people Madhu Kannan (CEO & MD)
Currency Indian rupee ( )
No. of listings 4,996
MarketCap US$1.78 trillion (Oct 2010)[1]
Volume US$980 billion (2006)
Indexes BSE Sensex
Website www.bseindia.com

The Bombay Stock Exchange (BSE) (Hindi : मुंबई शेअर बाजार Bombay Śhare Bāzaār)
(formerly, The Stock Exchange, Bombay) is the oldest stock exchange in Asia and has the
largest number of listed companies in the world, with 4990 listed as of August 2010.[2][3]
It is located at Dalal Street, Mumbai, India. On Aug, 2010, the equity market
capitalization of the companies listed on the BSE was US$1.39 trillion, making it the 4th
largest stock exchange in Asia and the 11th largest in the world.[4]

With over 4,990 Indian companies listed & over 7700 scrips on the stock exchange,[5] it
has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the
"BSE 30", is a widely used market index in India and Asia. Though many other
exchanges exist, BSE and the National Stock Exchange of India account for most of the
trading in shares in India.

Contents
[hide]

• 1 Hours of operation
• 2 History
• 3 Timeline
• 4 BSE indices
• 5 Sensex correlation with emerging market indices
• 6 Awards
• 7 See also
• 8 References

• 9 External links

[edit] Hours of operation

Session Timing
Beginning of the Day Session 8:00 - 9:00
Trading Session 9:00 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 - 16:35
Margin Session 16:35 - 16:50
Query Session 16:50 - 17:35
End of Day Session 17:30

The hours of operation for the BSE quoted above are stated in terms of the local time (i.e.
GMT +5:30) in Mumbai (Bombay), India. BSE's normal trading sessions are on all days
of the week except Saturdays, Sundays and holidays declared by the Exchange in
advance.[6]

[edit] History
The Phiroze Jeejeebhoy Towers house the Bombay Stock Exchange since 1980.

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the
1850s, when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front
of Mumbai's Town Hall. The location of these meetings changed many times, as the
number of brokers constantly increased. The group eventually moved to Dalal Street in
1874 and in 1875 became an official organization known as 'The Native Share & Stock
Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized
by the Indian Government under the Securities Contracts Regulation Act. The Bombay
Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure
overall performance of the exchange. In 2000 the BSE used this index to open its
derivatives market, trading Sensex futures contracts. The development of Sensex options
along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading
platform. Historically an open outcry floor trading exchange, the Bombay Stock
Exchange switched to an electronic trading system in 1995. It took the exchange only
fifty days to make this transition. This automated, screen-based trading platform called
BSE On-line trading (BOLT) currently has a capacity of 80 lakh orders per day. The BSE
has also introduced the world's first centralized exchange-based internet trading system,
BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.
[7]
. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

[edit] Timeline
Following is the timeline on the rise and rise of the Sensex through Indian stock market
history.

1830's Business on corporate stocks and shares in Bank and Cotton presses started in
Bombay.

1860-1865 Cotton price bubble as a result of the American Civil War

1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea
stocks and coal
1978-79 Base year of Sensex, defined to be 100.

1986 Sensex first compiled[8] using a market Capitalization-Weighted methodology for

30 component stocks representing well-established companies across key sectors.

30 October 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000
and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex
to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

5 December 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch
14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

6 July 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch
15,005 points in afternoon trade. It took seven months for the Sensex to move from
14,000 to 15,000 points.

19 September 2007 The Sensex scaled yet another milestone during early morning trade
on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000,
rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's
sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high
at 4659, up 113 points.

The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186
points to close at 4,732.

26 September 2007 The Sensex scaled yet another height during early morning trade on
September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-
mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down
187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

9 October 2007 The BSE Sensex crossed the 18,000-mark on October 9, 2007. It took
just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-
time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of
18,280. The market set several new records including the biggest single day gain of 789
points at close, as well as the largest intra-day gains of 993 points in absolute term
backed by frenzied buying after the news of the UPA and Left meeting on October 22 put
an end to the worries of an impending election.

15 October 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based
buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained
the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day
high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty
gained 242 points to close at 5,670.

29 October 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying
by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days
to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major
drivers of today's rally were index heavyweights Larsen and Toubro, Reliance Industries,
ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last
five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at
20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50
points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90,
showing a hefty gain of 203.60 points.

8 January 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after
49 trading sessions. This was backed by high market confidence of increased FII
investment and strong corporate results for the third quarter. However, it later fell back
due to profit booking.

13 June 2008 The sensex closed below 15,200 mark, Indian market suffer with major
downfall from January 21, 2008

25 June 2008 The sensex touched an intra day low of 13,731 during the early trades, then
pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve
Bank of India hiking CRR by 50 bps. FII outflow continued in this week.

2 July 2008 The sensex hit an intra day low of 12,822.70 on July 2, 2008. This is the
lowest that it has ever been in the past year. Six months ago, on January 10, 2008, the
market had hit an all time high of 21206.70. This is a bad time for the Indian markets,
although Reliance and Infosys continue to lead the way with mostly positive results.

6 October 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.

10 October 2008 The Sensex today closed at 10527,800.51 points down from the
previous day having seen an intraday fall of as large as 1063 points. Thus, this week
turned out to be the week with largest percentage fall in the SenseX

18 May 2009 After the result of 15th Indian general election Sensex gained 2100.79
points from the previous close of 12173.42, a record one-day gain. In the opening trade
itself the Sensex evinced a 15% gain over the previous close which led to a two-hour
suspension in trading. After trading resumed, the Sensex surged again, leading to a full
day suspension of trading.

19 October 2010 BSE today introduced the 15-minute special pre-open trading session, a
mechanism under which investors can bid for stocks before the market opens. The
mechanism, known as 'pre-open session call auction', lasted for 15 minutes (from 9:00-
9:15 am). [9] 5 November 2010 BSE today crossed the 21000 mark( exactly 21004.96)

[edit] BSE indices

Bombay Stock Exchange

For the premier stock exchange that pioneered the securities transaction business in India,
over a century of experience is a proud achievement. A lot has changed since 1875 when
318 persons by paying a then princely amount of Re. 1, became members of what today
is called Bombay Stock Exchange Limited (BSE).

Over the decades, the stock market in the country has passed through good and bad
periods. The journey in the 20th century has not been an easy one. Till the decade of
eighties, there was no measure or scale that could precisely measure the various ups and
downs in the Indian stock market. BSE, in 1986, came out with a Stock Index-SENSEX-
that subsequently became the barometer of the Indian stock market.

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of
BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major
stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE
National Index was renamed BSE-100 Index from October 14, 1996 and since then, it is
being calculated taking into consideration only the prices of stocks listed at BSE. BSE
launched the dollar-linked version of BSE-100 index on May 22, 2006.

With a view to provide a better representation of the increasing number of listed

companies, larger market capitalization and the new industry sectors, BSE launched on
27th May, 1994 two new index series viz., the 'BSE-200' and the 'DOLLEX-200'. Since
then, BSE has come a long way in attuning itself to the varied needs of investors and
market participants. In order to fulfill the need for still broader, segment-specific and
sector-specific indices, BSE has continuously been increasing the range of its indices.
BSE-500 Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched
BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE
TECk Index. Over the years, BSE shifted all its indices to the free-float methodology
(except BSE-PSU index).
BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value
Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.

The values of all BSE indices are updated on real time basis during market hours and
displayed through the BOLT system, BSE website and news wire agencies.

All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee
which comprises eminent independent finance professionals frames the broad policy
guidelines for the development and maintenance of all BSE indices. The BSE Index Cell
carries out the day-to-day maintenance of all indices and conducts research on
development of new indices.[10]

[edit] Sensex correlation with emerging market indices

Sensex is significantly correlated with the stock indices of other emerging markets[11][12]

[edit] Awards
• The World Council of Corporate Governance has awarded the Golden Peacock
Global CSR Award for BSE's initiatives in Corporate Social Responsibility
(CSR).
• The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March 31 2007 have been awarded the ICAI awards for excellence in financial
reporting.
• The Human Resource Management at BSE has won the Asia - Pacific HRM
awards for its efforts in employer branding through talent management at work,
health management at work and excellence in HR through technology

[edit] See also

• Phiroze Jeejeebhoy Towers
• Clause 49
• National Stock Exchange of India
• Companies listed on the Bombay Stock Exchange
• List of South Asian stock exchanges

[edit] References
1. ^ [1]
2. ^ World-exchanges.org
3. ^ "BSE - Key statistics". Bseindia.com.
http://www.bseindia.com/about/st_key/list_cap_raised.asp. Retrieved 2010-08-26.
4. ^ World-exchanges.org
5. ^ BSE website, "Listing and Capital Raised"
 6. ^ Market Hours, Bombay Stock Exchange via Wikinvest
7. ^ "BSEIndia". BSEIndia. http://www.bseindia.com/about/tech.asp. Retrieved
2010-07-28.
8. ^ "BSEIndia". BSEIndia. 2003-09-01.
http://www.bseindia.com/about/abindices/bse30.asp. Retrieved 2010-07-28.
9. ^ "BSE, NSE launch pre-open trade today". business.rediff.com.
http://business.rediff.com/report/2010/oct/18/fifteen-min-call-auction-window-
from-today.htm. Retrieved 18 Oct 2010.
10. ^ "BSEIndia". BSEIndia. http://www.bseindia.com/about/abindices/preface.asp.
Retrieved 2010-08-26.
11. ^ "BSE SENSEX Index Chart - Yahoo! Finance". Finance.yahoo.com.
http://finance.yahoo.com/echarts?s=
%5EBSESN#chart1:symbol=^bsesn;range=my;compare=^gspc+eww+ewy;indica
tor=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefi
ned. Retrieved 2010-07-28.
12. ^ http://www.reutersindia.net/ Asia Technical Analysis with Phil Smith

[edit] External links

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• The Evolution Of Indian Stock Market

Coordinates: 18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E

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Online Tutorial About Indian Stock Market –

India’s Nse & Bse Share Markets
Posted on January 20, 2010, 5:17 pm, by admin, under Option Trading.

THE NATIONAL STOCK EXCHANGE OF INDIA (NSE) Located in

India’s financial capital Mumbai, the National Stock Exchange (NSE) is the third
largest stock exchange in the world. During 31 December 2005, NSE VSAT terminals,
2799 in total, were spanning across 320 cities of India. The NSE has been a podium for
securities exchange for 14 years now! Thousand member strong, NSE provides dealing of
different securities, some of them being equity, corporate debt, certificate of deposit,
commercial paper, and central and state government securities. National Securities
Clearing Corporation, India Index Services and Products, National Securities Depository,
and NSE-IT (trading technology) are the associates of NSE. Owner of diverse financial
and insurance establishments, NSE can be broadly divided into three segments:

GENESIS OF NSEIt all began 16 years back, in November 1992, when the NSE was
integrated as a tax-paying company. In April 1993, NSE was given the status of a stock
exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June
1994, NSE began operations in the Wholesale Debt Market (WDM), and in November
that year, the Capital Market (Equities) Segment of the NSE began operations. Two years
hence, in 1996, NSE became the first exchange in India to trade derivatives specifically
on an equity index. In the new millennium, NSE began Indian Internet Online trading
system. Today the NSE deals in online examinations and award certification. Comprising
branches all over India, NSE introduced India’s first clearing corporation (National
Securities Clearing Corporation Ltd.) and India’s first depository (National Securities
Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order
book (LOB) exchange that deals with securities.

MARKET INDICESNSE established an index services firm called IISL – India Index
Services and products Ltd. – and opened numerous stock indices, including:

The other NSE Indices are:

MARKET CAPITALISATIONCurrently, NSE has four important capital market

segments:

MAJOR COMPANIES OF NSEThe major companies listed with the NSE are:

The top investors of NSE are:

LOCATION OF NSENational Stock Exchange of India Ltd.Exchange PlazaPlot No. C/1,

G BlockBandra-Kurla ComplexBandra (E)Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive
indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as
BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE.
As of July 2007, the total equity market capitalization of the Bombay Stock Exchange
was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by
acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most
important stock index of the country. The SENSEX was based on market-capitalisation-
weighted method and included stocks of some of the top financial houses. Noted financial
analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term
“BSE SENSEXâ€ﾝ which is an acronym for Bombay Stock Exchange SENSitive
indEX. Since September 2003, the SENSEX is measured on the method of free-float
capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains
stock indices like:

The BSE gives information on the price, charting, announcements, company contact,
shareholding pattern and results of the companies that are enlisted in the exchange. The
Board of Directors, encompassing eminent financial professionals, Managing Director of
the exchange, and the representatives of the Trading Members, maintain the overall
functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the
formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government,
state governments or other financial institutions, there are certain objectives followed by
the BSE:

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks
listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of
100. The relevant authorities update BSE SENSEX and in the process inspect and change
the SENSEX, the underlying idea being that the SENSEX represents the prevailing
market condition.

BSE PERFORMANCE

Since June 1990, the BSE Index has been increasing ten-fold. As per the data available,
since April 1979, the long run rate of return on the BSE SENSEX has been at almost
0.52% every week, with the rate of standard deviation being almost 3.67%. The returns
thus have been 27% per year. However after inflation, the figure has come down to 18%
per year.

BSE COMPANIES
Given below is a catalogue of stocks listed in the BSE:

Online Tutorial About Indian Stock Market –

India’s Nse & Bse Share Markets
Posted on January 20, 2010, 5:17 pm, by admin, under Option Trading.

THE NATIONAL STOCK EXCHANGE OF INDIA (NSE) Located in

India’s financial capital Mumbai, the National Stock Exchange (NSE) is the third
largest stock exchange in the world. During 31 December 2005, NSE VSAT terminals,
2799 in total, were spanning across 320 cities of India. The NSE has been a podium for
securities exchange for 14 years now! Thousand member strong, NSE provides dealing of
different securities, some of them being equity, corporate debt, certificate of deposit,
commercial paper, and central and state government securities. National Securities
Clearing Corporation, India Index Services and Products, National Securities Depository,
and NSE-IT (trading technology) are the associates of NSE. Owner of diverse financial
and insurance establishments, NSE can be broadly divided into three segments:
Â

GENESIS OF NSEIt all began 16 years back, in November 1992, when the NSE was
integrated as a tax-paying company. In April 1993, NSE was given the status of a stock
exchange under the Securities Contract (Regulations) Act of 1956. A year later, in June
1994, NSE began operations in the Wholesale Debt Market (WDM), and in November
that year, the Capital Market (Equities) Segment of the NSE began operations. Two years
hence, in 1996, NSE became the first exchange in India to trade derivatives specifically
on an equity index. In the new millennium, NSE began Indian Internet Online trading
system. Today the NSE deals in online examinations and award certification. Comprising
branches all over India, NSE introduced India’s first clearing corporation (National
Securities Clearing Corporation Ltd.) and India’s first depository (National Securities
Depository Ltd.). NSE is India’s earliest national, anonymous, electronic limit order
book (LOB) exchange that deals with securities.

MARKET INDICESNSE established an index services firm called IISL – India Index
Services and products Ltd. – and opened numerous stock indices, including:

The other NSE Indices are:

MARKET CAPITALISATIONCurrently, NSE has four important capital market

segments:

MAJOR COMPANIES OF NSEThe major companies listed with the NSE are:

The top investors of NSE are:

LOCATION OF NSENational Stock Exchange of India Ltd.Exchange PlazaPlot No. C/1,

G BlockBandra-Kurla ComplexBandra (E)Mumbai 400051

BOMBAY STOCK EXCHANGE (BSE)

Having its headquarters in Mumbai, the BSE SENSEX is the stock index or SENSitive
indEX of the BSE. The oldest stock exchange of Asia, the BSE SENSEX, also known as
BSE 30, is the focal stock index of India. There are 4800 companies listed with the BSE.
As of July 2007, the total equity market capitalization of the Bombay Stock Exchange
was US$ 1.005 trillion. The Singapore Exchange has become an alliance of BSE by
acquiring a strategic investment in the BSE.

GENESIS OF BSE

Way back in 1986, the BSE introduced the stock index that eventually became the most
important stock index of the country. The SENSEX was based on market-capitalisation-
weighted method and included stocks of some of the top financial houses. Noted financial
analyst and columnist, Mr. Deepak Mohoni in the year 1990, introduced the term
“BSE SENSEXâ€ﾝ which is an acronym for Bombay Stock Exchange SENSitive
indEX. Since September 2003, the SENSEX is measured on the method of free-float
capitalisation.

MARKET INDICES

Apart from maintaining the BSE SENSEX, the Bombay Stock Exchange also maintains
stock indices like:

The BSE gives information on the price, charting, announcements, company contact,
shareholding pattern and results of the companies that are enlisted in the exchange. The
Board of Directors, encompassing eminent financial professionals, Managing Director of
the exchange, and the representatives of the Trading Members, maintain the overall
functionality of the exchange.

BSE also gives the Beta value of the SENSEX Scrips, Beta being calculated by the
formula: Beta = Co-Variance (SENSEX, Stock)/Variance (SENSEX).

While listing securities that may be from public limited companies, central government,
state governments or other financial institutions, there are certain objectives followed by
the BSE:

BSE SENSEX OVERVIEW

The BSE SENSEX comprises thirty stocks and is a value-weighted index. The stocks
listed here are the most active stocks on the BSE. The BSE SENSEX has a base value of
100. The relevant authorities update BSE SENSEX and in the process inspect and change
the SENSEX, the underlying idea being that the SENSEX represents the prevailing
market condition.

BSE PERFORMANCE
Since June 1990, the BSE Index has been increasing ten-fold. As per the data available,
since April 1979, the long run rate of return on the BSE SENSEX has been at almost
0.52% every week, with the rate of standard deviation being almost 3.67%. The returns
thus have been 27% per year. However after inflation, the figure has come down to 18%
per year.

BSE COMPANIES

Given below is a catalogue of stocks listed in the BSE:

BSE Sensex
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The Bombay Stock Exchange

The BSE Sensex or Bombay Stock Exchange Sensitivity Index is a value-weighted

index composed of 30 stocks that started January 1, 1986. The Sensex is regarded as the
pulse of the domestic stock markets in India. It consists of the 30 largest and most
actively traded stocks, representative of various sectors, on the Bombay Stock Exchange.
These companies account for around fifty per cent of the market capitalisation of the
BSE. The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-
SENSEX is 1978-79.

At a regular intervals, the Bombay Stock Exchange (BSE) authorities review and modify
its composition to be sure it reflects current market conditions. The index is calculated
based on a free-float capitalization method; a variation of the market cap method. Instead
of using a company's outstanding shares it uses its float, or shares that are readily
available for trading. The free-float method, therefore, does not include restricted stocks,
such as those held by promoters, government and strategic investors.[1].

Initially, the index was calculated based on the ‘full market capitalization’ method.
However this was shifted to the free float method with effect from September 1, 2003.
Globally, the free float market capitalization is regarded as the industry best practice.

As per free float capitalization methodology, the level of index at any point of time
reflects the free float market value of 30 component stocks relative to a base period. The
Market Capitalization of a company is determined by multiplying the price of its stock by
the number of shares issued by the company. This Market capitalization is multiplied by
a free float factor to determine the free float market capitalization. Free float factor is also
referred as adjustment factor. Free float factor represent the percentage of shares that are
readily available for trading.

The Calculation of Sensex involves dividing the free float market capitalization of 30
companies in the index by a number called Index divisor.The Divisor is the only link to
original base period value of the Sensex. It keeps the index comparable over time and is
the adjustment point for all Index adjustments arising out of corporate actions,
replacement of scrips, etc.

The index has increased by over ten times from June 1990 to the present. Using
information from April 1979 onwards, the long-run rate of return on the BSE Sensex
works out to be 18.6% per annum, which translates to roughly 9% per annum after
compensating for inflation.[2]

Contents
[hide]

• 1 Sensex milestones
o 1.1 May 2006
o 1.2 May 2009
o 1.3 Effects of the Subprime crisis in the U.S
o 1.4 Participatory notes issue
o 1.5 January 2008
• 2 Major crashes since 2000
o 2.1 May 2006
o 2.2 Effects of the subprime crisis in the U.S.
o 2.3 Participatory notes issue
o 2.4 January 2008
• 3 Companies in the Sensex
• 4 Sensex falls
 • 5 References

• 6 External links

[edit] Sensex milestones

Here is a timeline on the rise of the Sensex through Indian stock market history.

• 1000, July 25, 1990 - On July 25, 1990, the Sensex touched the four-digit figure
for the first time and closed at 1,001 in the wake of a good monsoon and excellent
corporate results.

• 2000, January 15, 1992 - On January 15, 1992, the Sensex crossed the 2,000-
mark and closed at 2,020 followed by the liberal economic policy initiatives
undertaken by the then finance minister and current Prime Minister Dr
Manmohan Singh.

• 3000, February 29, 1992 - On February 29, 1992, the Sensex surged past the
3000 mark in the wake of the market-friendly Budget announced by Manmohan
Singh.

• 4000, March 30, 1992 - On March 30, 1992, the Sensex crossed the 4,000-mark
and closed at 4,091 on the expectations of a liberal export-import policy. It was
then that the Harshad Mehta scam hit the markets and Sensex witnessed unabated
selling.

• 5000, October 11, 1999 - On October 8, 1999, the Sensex crossed the 5,000-mark
as the Bharatiya Janata Party-led coalition won the majority in the 13th Lok
Sabha election.

• 6000, February 11, 2000 - On February 11, 2000, the information technology
boom helped the Sensex to cross the 6,000-mark and hit and all time high of
6,006.

• 7000, June 21, 2005 - On June 20, 2005, the news of the settlement between the
Ambani brothers boosted investor sentiments and the scrips of RIL, Reliance
Energy, Reliance Capital and IPCL made huge gains. This helped the Sensex
crossed 7,000 points for the first time.

• 8000, September 8, 2005 - On September 8, 2005, the Bombay Stock Exchange's

benchmark 30-share index – the Sensex - crossed the 8000 level following brisk
buying by foreign and domestic funds in early trading.

• 9000, December 9, 2005 - The Sensex on November 28, 2005 crossed 9000 to
touch 9000.32 points during mid-session at the Bombay Stock Exchange on the
 back of frantic buying spree by foreign institutional investors and well supported
by local operators as well as retail investors.

• 10,000, February 7, 2006 - The Sensex on February 6, 2006 touched 10,003

points during mid-session. The Sensex finally closed above the 10,000-mark on
February 7, 2006.

• 11,000, March 27, 2006 - The Sensex on March 21, 2006 crossed 11,000 and
touched a peak of 11,001 points during mid-session at the Bombay Stock
Exchange for the first time. However, it was on March 27, 2006 that the Sensex
first closed at over 11,000 points.

• 12,000, April 20, 2006 - The Sensex on April 20, 2006 crossed 12,000 and
touched a peak of 12,004 points during mid-session at the Bombay Stock
Exchange for the first time.

• 13,000, October 30, 2006 - The Sensex on October 30, 2006 crossed 13,000 for
the first time. It touched a peak of 13,039.36 and finally closed at 13,024.26.

• 14000, December 5, 2006 - The Sensex on December 5, 2006 crossed 14,000.

• 15,000, July 6, 2007 - The Sensex on July 6, 2007 crossed 15,000 mark.

• 16,000, September 19, 2007 - The Sensex on September 19, 2007 crossed the
16,000 mark.

• 17,000, September 26, 2007 - The Sensex on September 26, 2007 crossed the
17,000 mark for the first time.

• 18,000, October 9, 2007 - The Sensex on October 9, 2007 crossed the 18,000
mark for the first time.

• 19,000, October 15, 2007 - The Sensex on October 15, 2007 crossed the 19,000
mark for the first time.

• 20,000, October 29, 2007 - The Sensex on October 29, 2007 crossed the 20,000
mark for the first time.

• 21,000, Jan 08, 2008 - The Sensex on January 8, 2008 touched all time peak of
21078 before closing at 20873.[3]

• November 05, 2010 - The Sensex on November 05, 2010 closes at 21,004.96
with highest peak in two years.
[edit] May 2006

On May 22, 2006, the Sensex plunged by 1100 points during intra-day trading, leading to
the suspension of trading for the first time since May 17, 2004. The volatility of the
Sensex had caused investors to lose Rs 6 lakh crore (US$131 billion) within seven
trading sessions. The Finance Minister of India, P. Chidambaram, made an unscheduled
press statement when trading was suspended to assure investors that nothing was wrong
with the fundamentals of the economy, and advised retail investors to stay invested.
When trading resumed after the reassurances of the Reserve Bank of India and the
Securities and Exchange Board of India (SEBI), the Sensex managed to move up 700
points, still 450 points in the red.

The Sensex eventually recovered from the volatility, and on October 16, 2006, the Sensex
closed at an all-time high of 12,928.18 with an intra-day high of 12,953.76. This was a
result of increased confidence in the economy and reports that India's manufacturing
sector grew by 11.1% in August 2006.

• 13,000, October 30, 2006 - The Sensex on October 30, 2006 crossed 13,000 and
still riding high at the Bombay Stock Exchange for the first time. It took 135 days
to reach 13,000 from 12,000. And 124 days to reach 13,000 from 12,500. On
October 30, 2006 it touched a peak of 13,039.36 & closed at 13,024.26.

• 14,000, December 5, 2006 - The Sensex on December 5, 2006 crossed 14,000

and touched a peak of 14028 at 9.58AM(IST) while opening for the day
December 5, 2006.

• 15,000, July 6, 2007- The Sensex on July 6, 2007 crossed another milestone and
reached a magic figure of 15,000. it took almost 7 month and 1 day to touch such
a historic milestone. Coincidentally, Sachin Tendulkar achieved the same mark
(15000 runs in international cricket) around the same time. (A refrain at that time
was, "Sachin, make runs, so that the Sensex rises too!")

[edit] May 2009

On May 18, 2009, the sensex surged 2110.79 points from the previous closing of
12174.42 this leading to the suspension of trade for the whole day.This event created
history in Dalal Street, by being the first ever time that trade had been suspended for an
increase in value. This rally is primarily due to the victory of the UPA in the 15th General
elections. Trading was open for that day only for 55 seconds. Initially 25 seconds and 30
seconds market reached upper freeze limit twice in that day itself.

[edit] Effects of the Subprime crisis in the U.S

On Monday July 23, 2007, the Sensex touched a new height of 15,733 points. On July 27,
2007 the Sensex witnessed a huge correction because of selling by Foreign Institutional
Investor (FII)s and global cues to come back to 15,160 points by noon. Following global
cues and heavy selling in the international markets, the BSE Sensex fell by 615 points in
a single day on Wednesday August 1, 2007.

• 16,000, September 19, 2007- The Sensex (Sensitivity Index) on September 19,
2007 crossed the 16,000 mark and reached a historic peak of 16322 while closing.
The bull hits because of the rate cut of 50 bit/s in the discount rate by the Fed
chief Ben Bernanke on September 26, 2007 crossed the 17,000 mark for the first
time, creating a record for the second fastest 1000 point gain in just 5 trading
sessions. It failed however to sustain the momentum and closed below 17000. The
Sensex closed above 17000 for the first time on the following day. Reliance group
has been the main contributor in this bull run, contributing 256 points. This also
helped Mukesh Ambani's net worth to grow to over $50 billion or Rs.2 trillion. It
was also during this record bull run that the Sensex for the first time zoomed
ahead of the Nikkei of Japan.

• 18,000, October 9, 2007- The Sensex crossed the 18k mark for the first time on
October 9, 2007. The journey from 17k to 18k took just 8 trading sessions which
is the third fastest 1000 point rise in the history of the sensex. The sensex closed
at 18,280 at the end of day. This 788 point gain on October 9 was the second
biggest single day absolute gains.

• 19,000, October 15, 2007- The Sensex crossed the 19k mark for the first time on
October 15, 2007. It took just 4 days to reach from 18k to 19k. This is the fastest
1000 points rally ever and also the 640 point rally was the second highest single
day rally in absolute terms. This made it a record 3000 point rally in 17 trading
sessions overall.

Therefore the US Subprime crisis has a great effect even on INDIA.gold cross the
psychological barrier.

[edit] Participatory notes issue

On October 16, 2007, SEBI (Securities & Exchange Board of India) proposed curbs on
participatory notes which accounted for roughly 50% of FII investment in 2007. SEBI
was not happy with P-notes because it was not possible to know who owned the
underlying securities, and hedge funds acting through P-notes might therefore cause
volatility in the Indian markets.

However the proposals of SEBI were not clear and this led to a knee-jerk crash when the
markets opened on the following day (October 17, 2007). Within a minute of opening
trade, the Sensex crashed by 1744 points or about 9% of its value - the biggest intra-day
fall in Indian stock markets in absolute terms till then. This led to automatic suspension
of trade for 1 hour. Finance Minister P. Chidambaram issued clarifications, in the
meantime, that the government was not against FIIs and was not immediately banning
PNs. After the market opened at 10:55 AM, the index staged a comeback and ended the
day at 18715.82, down 336.04 from the last day's close.
This was, however not the end of the volatility. The next day (October 18, 2007), the
Sensex tumbled by 717.43 points — 3.83 per cent — to 17998.39. The slide continued
the next day when the Sensex fell 438.41 points to settle at 17559.98 at the end of the
week, after touching the lowest level of that week at 17226.18 during the day.

After detailed clarifications from the SEBI chief M. Damodaran regarding the new rules,
the market made a 879-point gain on October 23, thus signalling the end of the PN crisis.

• 20,000, October 29, 2007- The Sensex crossed the 20k mark for the first time
with a massive 734.5 point gain but closed below the 20k mark. It took 11 days to
reach from 19k to 20k. The journey of the last 10,000 points was covered in just
869 sessions as against 7,297 sessions taken to touch the 10,000 mark from 1,000
levels. In 2007 alone, there were six 1,000-point rallies for the Sensex.

• 21,000, January 8, 2008 Business Standard

[edit] January 2008

In the third week of January 2008, the Sensex experienced huge falls along with other
markets around the world. On January 21, 2008, the Sensex saw its highest ever loss of
1,408 points at the end of the session. The Sensex recovered to close at 17,605.40 after it
tumbled to the day's low of 16,963.96, on high volatility as investors panicked following
weak global cues amid fears of a recession in the US.

The next day, the BSE Sensex index went into a free fall. The index hit the lower circuit
breaker in barely a minute after the markets opened at 10 AM. Trading was suspended for
an hour. On reopening at 10.55 AM IST, the market saw its biggest intra-day fall when it
hit a low of 15,332, down 2,273 points. However, after reassurance from the Finance
Minister of India, the market bounced back to close at 16,730 with a loss of 875 points.[4]

Over the course of two days, the BSE Sensex in India dropped from 19,013 on Monday
morning to 16,730 by Tuesday evening or a two day fall of 13.9%.[4]

• 9,975, October 17, 2008 - Sensex crashes below the psychological 5 figure mark
of 10K, following extremely negative global financial indications in US and other
countries. Exactly one year back in October 2007, Sensex had gone past the 20K
mark.

• 8701.07, October 24, 2008 lost 10.96% of its value on the intra day trade, the
3rd highest loss for a one day period in its history

[edit] Major crashes since 2000

[edit] May 2006

On May 22, 2006, the Sensex plunged by 1100 points during intra-day trading, leading to
the suspension of trading for the first time since May 17, 2004. The volatility of the
Sensex had caused investors to lose Rs 6 lakh crore ($131 billion) within seven trading
sessions. The Finance Minister of India, P. Chidambaram, made an unscheduled press
statement when trading was suspended to assure investors that nothing was wrong with
the fundamentals of the economy, and advised retail investors to stay invested. When
trading resumed after the reassurances of the Reserve Bank of India and the Securities
and Exchange Board of India (SEBI), the Sensex managed to move up 700 points, still
450 points in the red.

The Sensex eventually recovered from the volatility, and on October 16, 2006, the Sensex
closed at an all-time high of 12,928.18 with an intra-day high of 12,953.76. This was a
result of increased confidence in the economy and reports that India's manufacturing
sector grew by 11.1% in August 2006.

[edit] Effects of the subprime crisis in the U.S.

On July 23, 2007, the Sensex touched a new high of 15,733 points. On July 27, 2007 the
Sensex witnessed a huge correction because of selling by Foreign Institutional Investors
and global cues to come back to 15,160 points by noon. Following global cues and heavy
selling in the international markets, the BSE Sensex fell by 615 points in a single day on
August 1, 2007.

[edit] Participatory notes issue

On October 16, 2007, SEBI (Securities & Exchange Board of India) proposed curbs on
participatory notes which accounted for roughly 50% of FII investment in 2007. SEBI
was not happy with P-notes because it was not possible to know who owned the
underlying securities, and hedge funds acting through P-notes might therefore cause
volatility in the Indian markets.

However the proposals of SEBI were not clear and this led to a knee-jerk crash when the
markets opened on the following day (October 17, 2007). Within a minute of opening
trade, the Sensex crashed by 1744 points or about 9% of its value - the biggest intra-day
fall in Indian stock markets in absolute terms till then. This led to automatic suspension
of trade for 1 hour. Finance Minister P. Chidambaram issued clarifications, in the
meantime, that the government was not against FIIs and was not immediately banning
PNs. After the market opened at 10:55 AM, the index staged a comeback and ended the
day at 18715.82, down 336.04 from the last day's close.

This was, however not the end of the volatility. The next day (October 18, 2007), the
Sensex tumbled by 717.43 points — 3.83 per cent — to 17998.39. The slide continued
the next day when the Sensex fell 438.41 points to settle at 17559.98 at the end of the
week, after touching the lowest level of that week at 17226.18 during the day.
After detailed clarifications from the SEBI chief M. Damodaran regarding the new rules,
the market made a 879-point gain on October 23, thus signalling the end of the PN crisis.

[edit] January 2008

In the third week of January 2008, the Sensex experienced huge falls along with other
markets around the world. On January 21, 2008, the Sensex saw its highest ever loss of
1,408 points at the end of the session. The Sensex recovered to close at 17,605.40 after it
tumbled to the day's low of 16,963.96, on high volatility as investors panicked following
weak global cues amid fears of a recession in the US.

The next day, the BSE Sensex index went into a free fall. The index hit the lower circuit
breaker in barely a minute after the markets opened at 10 AM. Trading was suspended for
an hour. On reopening at 10.55 AM IST, the market saw its biggest intra-day fall when it
hit a low of 15,332, down 2,273 points. However, after reassurance from the Finance
Minister of India, the market bounced back to close at 16,730 with a loss of 875 points.[4]

Over the course of two days, the BSE Sensex in India dropped from 19,013 on Monday
morning to 16,730 by Tuesday evening or a two day fall of 13.9%.[4]

[edit] Companies in the Sensex

List of BSE Sensex companies provides the full list of companies that have been part of
the BSE Sensex since its inception in 1986 (baselined to 1979).

(as of Feb 26, 2010)[5] [6] Lifetime highest 3 rises in history (highest rise was in 2009
when second time upa government won the election)

Adj. Factor Weight in

Code Name Sector
Index(%)
500410 ACC Housing Related 0.55 0.77
500103 BHEL Capital Goods 0.35 3.26
532454 Bharti Airtel Telecom 0.35 3
DLF Universal
532868 Housing related 0.25 1.02
Limited
500300 Grasim Industries Diversified 0.75 1.5
500010 HDFC Finance 0.90 5.21
500180 HDFC Bank Finance 0.85 5.03
Hero Honda Motors Transport
500182 0.50 1.43
Ltd. Equipments
Hindalco Industries Metal,Metal
500440 0.7 1.75
Ltd. Products & Mining
 Hindustan Lever
500696 FMCG 0.50 2.08
Limited
532174 ICICI Bank Finance 1.00 7.86
Information
500209 Infosys 0.85 10.26
Technology
500875 ITC Limited FMCG 0.70 4.99
532532 Jaiprakash Associates Housing Related 0.55 1.25
500510 Larsen & Toubro Capital Goods 0.90 6.85
Mahindra & Mahindra Transport
500520 0.75 1.71
Limited Equipments
Transport
532500 Maruti Suzuki 0.50 1.71
Equipments
Information
532541 NIIT Technologies 0.15 2.03
Technology
532555 NTPC Power 0.15 2.03
Information
500304 NIIT 0.15 2.03
Technology
500312 ONGC Oil & Gas 0.20 3.87
Reliance
532712 Telecom 0.35 0.92
Communications
500325 Reliance Industries Oil & Gas 0.50 12.94
Reliance
500390 Power 0.65 1.19
Infrastructure
500112 State Bank of India Finance 0.45 4.57
Metal, Metal
500900 Sterlite Industries Products, and 0.45 2.39
Mining
Sun Pharmaceutical
524715 Healthcare 0.40 1.03
Industries
Tata Consultancy Information
532540 0.25 3.61
Services Technology
Transport
500570 Tata Motors 0.55 1.66
Equipments
500400 Tata Power Power 0.70 1.63
Metal, Metal
500470 Tata Steel 0.70 2.88
Products & Mining
Information
507685 Wipro 0.20 1.61
Technology
 • DLF replaced Dr. Reddy's Lab on November 19, 2007.
• Jaiprakash Associates Ltd replaced Bajaj Auto Ltd on March 14,2008.
• Sterlite Industries replaced Ambuja Cements on July 28, 2008.
• Tata Power Company replaced Cipla Ltd. on July 28, 2008.
• Sun Pharmaceutical Industries replaced Satyam Computer Services on January 8,
2009
• Hero Honda Motors Ltd. replaced Ranbaxy on June 29, 2009
• Cipla to replace Sun Pharma from May 3, 2010
• JSPL replaced Grasim in 2010

[edit] Sensex falls

Some major single-day falls of the Sensex have occurred on the following dates [1]:

1. January 21, 2008 --- 1,408.35 points

2. Oct 24, 2008---1070.63 points
3. March 17, 2008 --- 951.03 points
4. July 6, 2009 --- 870 points
5. January 22, 2008 --- 857 points
6. February 11, 2008 --- 833.98 points
7. May 18, 2006 --- 826 points
8. October 10, 2008 --- 800.10 points
9. March 13, 2008 --- 770.63 points
10. December 17, 2007 --- 769.48 points
11. January 7, 2009 --- 749.05 points
12. March 31, 2007 --- 726.85 points
13. October 6, 2008 --- 724.62 points
14. October 17, 2007 --- 717.43 points
15. September 15, 2008 --- 710.00 points
16. January 18, 2007 --- 687.82 points
17. November 21, 2007 --- 678.18 points
18. August 16, 2007 --- 642.70 points
19. August 17, 2009 --- 626.71 points
20. June 27, 2008 --- 600.00 points

[edit] References
1. ^ BSE Sensex weighting methodology via Wikinvest
2. ^ Handbook of Statistics on Indian Economy
3. ^ http://in.rediff.com/money/2008/jan/08sensex.htm
4. ^ a b c d rediff Business Bureau (2008-01-21). "The 10 biggest falls in Sensex
history". MarketWatch. http://www.rediff.com/money/2008/jan/21spec1.htm.
Retrieved 2008-01-23.
5. ^ List of sensex stocks
6. ^ http://www.7moneywonder.com
[edit] External links
• BSE Sensex profile at Wikinvest

Retrieved from "http://en.wikipedia.org/wiki/BSE_Sensex"

Categories: Indian stock market indices | BSE Sensex
Hidden categories: Wikipedia articles needing cleanup from May 2009 | All articles
needing cleanup

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• This page was last modified on 5 November 2010 at 17:28.