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HISTORY The Bombay Stock Exchange is the oldest exchange in Asia.

It traces its history to the 1850s, when four Gujarati and one 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 8 million 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.[5] The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

Type Location

Stock Exchange Mumbai, India 18°55′47″N 72°50′01″E18.929681°N 72.833589°E 1875 Bombay Stock Exchange Limited Madhu Kannan (CEO & MD) Indian rupee ( ) 5,112

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Founded Owner Key people Currency No. of listings

15:50 Closing Session 15:50 .16:05 Option Exercise Session 16:05 - INDICES .com Session Timing Beginning of the Day Session 8:30 .15:30 Position Transfer Session 15:30 .MarketCap Volume US$1 trillion (Dec 2011)[1] US$231 billion (Nov 2010) BSE SENSEX Indexes BSE Small Cap BSE Mid-Cap BSE 500 Website www.9:00 Pre-open trading session 9:00 .bseindia.9:15 Trading Session 9:15 .

Over the years. DOLLEX-30 and the country's first free-float based index . Ahmedabad and Madras. 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. It comprised 100 stocks listed at five major stock exchanges in India . the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.Mumbai. BSE shifted all its indices to the free-float methodology (except BSE-PSU index). it is being calculated taking into consideration only the prices of stocks listed at BSE. 1830's Business on corporate stocks and shares in Bank and Cotton presses started in Mumbai. BSE launched BSE-PSU Index.[8] SENSEX is significantly correlated with the stock indices of other emerging markets TIMELINE Following is the timeline on the rise of the SENSEX through Indian stock market history. In 2001. BSE disseminates information on the Price-Earnings Ratio. BSE launched two new index series on 27 May 1994: The 'BSE-200' and the 'DOLLEX-200'. BSE-500 Index and 5 sectoral indices were launched in 1999. BSE launched the dollar-linked version of BSE-100 index on May 22. All BSE Indices are reviewed periodically by the BSE Index Committee. The BSE National Index was renamed BSE-100 Index from October 14.the BSE TECk Index. Calcutta. The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system.The graph of SENSEX from July 1997 to March 2011 The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). Delhi. 2006. . 1996 and since then. BSE website and news wire agencies.

It took 135 days for the SENSEX to move from 12. up 117. 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. up 113 points. The index zoomed to a new all-time intra-day high of 18. 2007.000 points from the 17.327.000 and 123 days to move from 12. The market set several new records including the biggest single day gain of 789 points at close. 2007. defined to be 100. 30 October 2006 The SENSEX on October 30.323.down 187 points from the day's high. rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16.000 points in just four trading days.670.45 points or 0.000 mark. Within minutes after trading began.005 points in afternoon trade.000.000. 9 October 2007 The BSE SENSEX crossed the 18. 5 December 2006 The SENSEX on December 5. and finally ended with a smart gain of 640 points at 19.000 to touch 15. 2007 crossed the magical figure of 15. The NSE Nifty gained 186 points to close at 4. 2007.887 . The index touched a fresh all-time intra-day high of 19. It took 36 days for the SENSEX to move from 13.000 to 13.000 to the 14.000 to 15.024.028 points. the SENSEX crossed the 17. 1870 . the SENSEX crossed 16. .000-mark. It took just 8 days to cross 18. 15 October 2007 The SENSEX crossed the 19.The Nifty gained 242 points to close at 5.000-mark backed by revival of funds-based buying in blue chip stocks in metal.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.26 points.1860-1865 Cotton price bubble as a result of the American Civil War.000 from 15.000-mark on October 9.000 points. 1986 SENSEX first compiled[6] using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies across key sectors.059. It took seven months for the SENSEX to move from 14.000 mark. The index gained the last 1. 2006 crossed the 14. The SENSEX finally ended with a gain of 654 points at 16.280.000-mark to touch 14. The SENSEX ended with a gain of 22 points at 16.921. 2006 crossed the magical figure of 13.000. It finally gained 789 points to close at an all-time high of 18. capital goods and refinery sectors.732. 19 September 2007 The SENSEX scaled yet another milestone during early morning trade on September 19.500 to 13. Within minutes after trading began.096.9%. 6 July 2007 The SENSEX on July 6. Some profit taking towards the end saw the index slip into red to 16.000 and closed at 13. 26 September 2007 The SENSEX scaled yet another height during early morning trade on September 26. Nifty also touched a new high at 4659.

a gain of 734.70.87 points before ending at its fresh closing high of 19.29 October 2007 The SENSEX crossed the 20.905. 10 October 2008 The SENSEX today closed at 10527. leading to a full day suspension of trading. It crossed the 21.42.90.024. 2008 25 June 2008 The SENSEX touched an intra day low of 13. 800. . the SENSEX surged again. 19 October 2010 BSE introduced the 15-minute special pre-open trading session. 2008. 27 December 2010 BSE SENSEX is at 20.79 points from the previous close of 12173. This is the lowest that it has ever been in the past year. The 30-share index spurted in the last five minutes of trade to flypast the crucial level and scaled a new intra-day peak at 20.93.70 on July 2.50 points. it later fell back due to profit booking. although Reliance and Infosys continue to lead the way with mostly positive results.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Reliance Industries.028. known as 'pre-open session call auction'. 2008. a mechanism under which investors can bid for stocks before the market opens.000 points after the index crossed the 19. a record one-day gain. 8 January 2008 The SENSEX peaks.731 during the early trades. 13 June 2008 The SENSEX closed below 15. then pulled back and ended up at 14. FII outflow continued in this week.000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting.922.220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps.000-mark on October 15. 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. ICICI Bank. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. In the opening trade itself the SENSEX evinced a 15% gain over the previous close which led to a two-hour suspension in trading.822. showing a hefty gain of 203. 6 October 2008 The SENSEX closed at 11801. the market had hit an all time high of 21206.67. lasted for 15 minutes (from 9:00-9:15 am). The NSE Nifty rose to a record high 5.[7] 5 November 2010 BSE SENSEX crossed the 21000 mark (exactly 21004. Six months ago.96). 2 July 2008 The SENSEX hit an intra day low of 12.50 points before ending at 5. The major drivers of today's rally were index heavyweights Larsen and Toubro. After trading resumed.60 points. Thus. However. The index took only 10 trading days to gain 1. This is a bad time for the Indian markets.000 mark in intra-day trading after 49 trading sessions. on January 10. The mechanism.977. Indian market suffer with major downfall from January 21. HDFC Bank and SBI among others.70 hitting the lowest in the past 2 years.200 mark.

The broader index. due to renewed worries on inflation as oil prices are likely to go up with escalating tensions over Iran's nuclear programme. tumbled by 477. Sensex.10 points or 2.82 points or 2. All this calls for continued caution. ICICI Bank and Infosys dragged the benchmark index down and it closed at 17445. . Reports also said that the government was considering a hike in the prices of petrol and diesel. “The undercurrent was hit by worries over rising oil prices and its impact on inflation.81 per cent. The indices were moving up in this calendar year with a robust inflow of FII money of around $5. liquidity remains tight. On the BSE.26 per cent and the BSE-500 2. IIFL.5 billion so far.67 per cent on Monday recording its biggest fall in five months.75.02 per cent.” said Amar Ambani. Any fresh spike in inflation could prompt the Reserve Bank of India (RBI) to postpone the proposed reduction in interest rates. 2012 Rising oil prices and its impact on inflation affect sentiment The Bombay Stock Exchange sensitive index. mid-cap stocks lost 3. NSE's 50-share Nifty. But oil prices moved up to around $125 a barrel. threatening indications of a slowing inflationary pressure.73 per cent. Head of Research. small-cap 3. Index heavyweights Reliance Industries.MUMBAI. lost 148. February 28. The trade and current account deficits too are widening. The government's fiscal situation is also not conducive. On the other hand.

06% year-to-date. the second round of LTRO in Europe (a decision on this is scheduled on Wednesday).S. and wage inflation is also on the rise.14% year-to-date (YTD) against the U. inflation has stayed over 9% since December 2010. against previous estimates of 9% growth. The Bombay Stock Exchange has been one of the world's worst performing stock markets this year. so we went digging.The fall was led by the realty sector with 5.8% a year ago. We've been tracking India's inflation and stock market woes for some time. the country's central bank has been hiking interest rates since March 2010 to curb inflation. The Reserve Bank of India (RBI). would be. India's finance ministry released a statement showing that rising interest rates in part caused industrial growth to drop to 5% from April-September in the fiscal year 2011 .03 per cent and banks 3. The BSE 30-share index is off 18. election results. power 4.” said Sanjeev Zarbade. and spike in crude oil prices to 10-month high were among the factors partly responsible for the sharp sell-off.P. Zarbade.29 per cent followed by metal 4. Foreign investors have been pulling out of the country all year as India continues to struggle with inflation. driven up by food costs. First. The Indian economy which gained 6. . India's Economic Decline Is One Of The Most Under-Reported Stories This Year Economist Tyler Cowen tweeted.72% against the euro.9% in the second quarter. Vice-President (Private Client Group Research).86 per cent. the outcome of state elections and finally.97 per cent. from 8. Inflation and capital flight are two clear factors that have hurt the Indian economy. and 13. the budget in mid-march.2012. Key factors to watch out for. worse than the stock markets of other BRIC economies. “It was a poor start to the week on Monday as the Sensex saw biggest one-day fall since September 2011 likely led by unwinding of long positions. "the current economic deterioration of India is the single most important under-reported story these days…". And the Indian Rupee is off 13. dollar. expected on March 6. and investors continue to pick safe havens. The currency has been declining as inflation remains consistently high.5% this year. Kotak Securities. the Iran imbroglio and its impact on crude oil price. is expected to grow 7. according to Mr. according to Indian finance minister Pranab Mukherjee. U.

In an extreme scenario. we anticipate that it will deteriorate over the next 12-18 months. meet short‐term claims without any disruption or loss of confidence. and the central bank has now promised to inject liquidity through debt repurchases. which could drain funds away from the private credit market. compared with $28. the reserves are essentially counterbalanced against our external liability position. Moody's recently cut India's banking sector outlook to negative. Foreign investors have only $530 million in Indian equities this year. India is a structurally current account deficit economy. capital flight in the wake of the European debt crisis and India's corruption scandals have landed another massive blow to the economy. over $300 billion. from stable: "India's economic momentum is slowing because of high inflation.4 billion more to repay because of the weakness in the rupee. thereby causing an increase in provisioning needs for the banks in FY2012 and FY2013. in turn. At the same time. but because we have a current account deficit. deputy governor of the RBI explains the impact of the European debt crisis and skittish foreign investors on the Indian economy: The impact of this recent global instability on India has been enormous. India runs a trade deficit. and the rise in the borrowing program of the Indian government. Dr. Foreign investors looking to cut risk have pulled their money out of India which counts on foreign funds to keep its current account gap in check. had been large and stable enough to more than offset the current account deficit. which over the past several years. This would cost $5. …India has large reserves. This deficit is.9 billion a year ago. financed by capital inflows. of course. Subir Gokarn. and rapidly rising interest rates. concerns have emerged over the sustainability of the recovery in the US and Europe. if there is a large outflow of capital. and last month it was reported that Indian companies have raised about $30 billion in foreign debt in 2011." Secondly. over and above that. monetary tightening. according to the Securities and Exchange Board of India (SEBI). .The higher interest rates have tightened liquidity in the Indian market over the year. the adequacy of reserves will be judged by the economy's ability to finance the current account deficit and. …"With asset quality. given the tightening environment.