Story of the Indian Inventory Bazaar
To state of the Indian Inventory Mart is a bit of a misnomer considering there is no one unmarried inventory transform in India. In reality, there are 21 inventory exchanges conducting concern across that society. But, the Bombay Inventory Moderate is the oldest modify in the state and the Governmental Inventory Convert is the largest inventory moderate in India. The two exchanges as well chronicle for the majority of traded shares in India.
Bombay Stock Exchange
In 1875, 318 human beings formed the Native Ability and Inventory Brokers Corporation in India. This was eventually renamed the Bombay Inventory Transform as the cipher of inventory exchanges in the state grew. The Bombay Inventory Alter was the beginning moderate to get authorized recognition from the Indian Management in 1956.
National Stock Exchange
The Civic Inventory Alternate is again located in Bombay. It was created based on a Announcement of the Flying Powered Glance at 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
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.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
It peaked at 20,000 in January 2008.The Market's Volatility
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
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.
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.
India has the second largest number of companies being traded on its stock exchanges, second only to the USA. 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.
