HISTORY OF BSE (Bombay Stock Exchange)
It is the very first stock exchange in the whole Asia. It is around in 1850 when one Parsi man and four Gujarati men who are the stock brokers under banyan tree and near the Mumbai’s Town Hall, locations of the meetings changes as the people increases. This banyan tree is still available in the Horniman Circle Park in the city of Mumbai. It has become a huge group in around 1874 of around 22 stock brokers and they move to Dalal Street and in the next year there emerges a new group with name ‘The Native Share & Stock Brokers Association’. In January 1899 the Brokers Hall is inaugurated by James M. Maclean. As the First World War ended this BSE office is shifted to a building in 1928 which is near the Bombay Town Hall at present.
In the later 1950s it comes under the notice of the Government of India. It comes as BSE SENSEX in the late 1980s and also gives BSE a mean to measure the performance of the stocks and exchange. One of the famous and leading stock brokers of that time is Premchand Roychand, he set out many new traditions and rules in the market which are still followed in the market.
Advt – BSE NSE Tips
Bombay Stock Exchange changes to the electronic trading system in 1995, it takes a time of fifty days to convert it. In the year of 2000 there come the derivatives of this market on the basis of the same index, trading future contracts. In the next preceding years, BSE begins to expand its platform of trading by developing SENSEX with equity derivatives. The electronic and automatic system which is based on the screen is called BSE Online trading commonly known as BOLT.
In July of 2005 the total capitalization of the BSE market is about US $466 billion which is around 20 trillion in Rupees. The mostly used market index of the BSE is BSE SENSEX. In the year of 2005 it is one of the biggest stock exchange in the world in the terms of the number of transactions it has done in the year. BSE and NSE have the combined market cap of $125.5 Billion.
Timeline of BSE (Bombay Stock Exchange)
Let us see some of the timelines of the Bombay Stock Exchange: in 1830 the business of stocks and shares in Bank and Cotton start in the city of Mumbai and in 1860 to 1865 the price of Cotton rises due to American Civil War, in 1979 the base year is set to be 100, in 1986 SENSEX compiled. In the year of 2006 there take place the miracles in the market, it touches the figure of 13000 and changes to 14000 in just 36 days. It goes to figure 15000 in July 2007 and in only 53 days it grows to the figure 16000 and to 17000 in only 7 days and to the figure of 18000 in 8 days, miracles be happening in the market at that time. And in 20 days after that it is at 20000 points. In the year of 2008 crisis happens and it lead to decrease the figure to 10500 only, in the year of 2010 it is at 21000 marks again.
BSE (Bombay Stock Exchange) at present
The stock market is growing day by day and it has grown more than four times from the month of January 1990 to till the date. If we see the market from the month of April of the year 1979 then the long run rate return of the market of the BSE SENSEX is around 0.52% in a week which is continuously compounded with the standard deviation of3.67%.
At present it has around 8 million orders in a day to deal with. BSE also lead to the world’s first internet based trading system which is centralized. It is situated at the Phiroze Jeejeebhoy Towers in the Dalal Street at Fort Area. There are nearly 3500 companies in India which are well established and are listed in the market which also has a good trading volume. The present plot where the building of the BSE stands, in the Dalal Street is bought in the year of 1928 and the building is constructed in the year of 1930. At present it has 28 storied building Jeejeebhoy Tower at the same place where the old building used to stand. The name of the Tower is derived from the name of Sir Phiroze Jamshedjee Jeejeebhoy who was the chairman of Bombay Stock Exchange from the year of 1966 and till the year of 1980 till he met his death.