Bombay Stock Exchange (BSE)

 

Bombay Stock Exchange Limited is the oldest stock exchange in Asia. Popularly known as BSE it was established as "The Native Share & Stock Brokers Association" in 1875.

It is the first stock exchange in India to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.

Bombay Stock Exchange played a pivotal role in the development of the Indian capital market and its index, SENSEX, is tracked worldwide. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives.

 

BSE National Index

 

As BSE Sensex has only 30 scrips, a need was felt for a more broad-based index, which could also reflect the movement of stock prices on a national scale. In 1989, Bombay Stock Exchange Limited, started compilation and publication of an index series called "BSE National Index".

BSE 200 Index

 

BSE 200 Index was constructed and launched on 27th May 1994. The number of companies listed on the Bombay Stock Exchange registered a phenomenal increase from 992 in the year 1980 to about 3,200 companies by the end of March 1994. These factors necessitated compilation of a new broad-based index series reflecting the present market trends in a more effective manner and providing a better representation of the increased equity stocks, market capitalization as also the newly emerged industry groups.

 

BSE 500 Index

 

On August 9, 1999, Bombay Stock Exchange constructed a new index, namely, BSE-500, consisting of 500 scrips in its basket. BSE-500 index represents nearly 93% of the total market capitalisation on Bombay Stock Exchange Limited.

 

BSE Bankex

 

Banking sector reforms such as fall in interest rates, and enactment of Securitization Bill have given a major fillip to Indian banking industry. These developments have significantly impacted the performance of bank stocks and bank stocks have emerged as a major segment in the equity markets. Hence, BSE considered it important to design an index exclusively for bank stocks.

 

BSE PSU Index

 

BSE - Public Sector Undertaking (PSU) Index is a stock index that tracks the performance of the listed PSU stocks on the Exchange. It is a suitable benchmark for the Central Government to monitor its wealth on the bourses.

 

BSE TECk Index

 

The BSE-TECk is a stock index constituted of companies in the Information Technology, Media and Telecom sectors. It tracks the performance of TMT sectors through a basket of 21 quality stocks. The BSE TECk Index provides a quality benchmark for the investment community in the knowledge-based sectors.

 

Sensex

 

Sensex is the value-weighted index of the companies listed on the stock exchange. Bombay Stock Exchange (BSE) in 1986 came out with a stock index that subsequently became the barometer of the Indian stock market.

 

Sensex is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. That's why it's also known as BSE 30 Sensex. The base year of sensex is 1978-79 and the base value is 100.


Sensex is calculated using the "Free-float Market Capitalization" methodology. As per this 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.