BSE - (Bombay Stock Exchange)

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BSE-(Bombay Stock Exchange)

GAGANDEEP KAUR ARORA

Vision

"Emerge as the premier Indian stock exchange by establishing global benchmarks"

Board of Directors
Non-Executive Chairman -Mr. Jagdish Capoor

Managing Director & Chief Executive Officer -Mr.Madhu Kannan

Introduction
history The origine of the BSE dates back to 1875. It was organized under the name of The Native Stock & Share Brokers Association as a voluntary & non-profit making association. It was recognized on a permanent basis in 1957.

Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The SENSEX is constructed on a 'freefloat' methodology.

It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. BSE continues to innovate ,In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. BSE calculate 20 indices and disseminates these every 15 seconds.

FUNCTIONS OF BSE
The Stock Market is a pivotal institution in the financial system. A well-ordered stock market performs several economic functions: It ensures the measure of safety and fair dealing It performs an act of magic by translating short-term investments into long-term funds for companies. It directs the flow of capital in the most profitable channels. It induces companies to raise their standard of performance. It offers guidance to management about the cost of capital.

Objective of BSE
1. To safeguard the interest of investing public having dealings on the exchange. 2. To establish & promote honorable & just practices in securities transaction. 3. To promote , develop & maintain well regulated market for dealing in securities. 4. To promote industrial development in the country through efficient souces.

FEATURES OF SENSEX
Sensex is a value weighted index Composed of 30 stocks representing various sectors These companies accounts for one fifth of market capitalization Base value of sensex is 100 (april 1,1979) Base year (1978-79) Free float capitalization method Iconic stature-tracked worldwide Index cooperation agreement with deutsche borse has made sensex available to investors in europe and america Also available in hong kong

SCRIP SELECTION CRITERIA


Market capitalization
Trading frequency

Number of trades
Listed history Track record

MARKET CAPITALIZATION
It is the worth of the company in terms of shares Based on this market capitalization values only companies are classified into "largecap", "mid-cap"and "small cap" Market Capitalization = No. of outstanding shares x Current market price of one share

CAUSES OF PRICE FLUCTUATION



DEMAND AND SUPPLY BANK RATE SPECULATIVE PRESSURE ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS CHANGE IN COMPANYS BOARD OF DIRECTORS FINANCIAL POSITION OF THE COMPANY TRADE CYCLE POLITICAL FACTORS SYMPATHETIC FLUCTUATIONS

HIGHS AND LOWS OF BSE


11801.70, Oct 6, 2008 The sensex closed at 11801.70 hitting the lowest in the past 2years. 10527, Oct 10, 2008 The Sensex today closed at 10527,800.51 points down. 14284.21, May 18, 2009 After the result of15th Indian general election Sensex gained 2110.79 points from the previous close of 12173.42 these creates a new history in Indian Market. In the Opening Trade itself sensex gains 15% from the previous day close this leads to the suspension of 2 hours trade. After 2 hours sensex again surged this leads to the suspension of full day trading.

Sensex Falls
Some major single-day falls of the Sensex have occurred on the following dates January 21, 2008 --- 1,408.35 points Oct 24, 2008---1070.63 points March 17, 2008 --- 951.03 points July 6, 2009 --- 870 points January 22, 2008 --- 857 points February 11, 2008 --- 833.98 points May 18, 2006 --- 826 points October 10,2008 --- 800.10 points

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