Bombay Stock ExchangeMumbai Sheyar Bāzār

Type Stock ExchangeLocation Mumbai, India

Owner Bombay Stock Exchange LimitedKey people Rajnikant Patel (CEO)

Currency INRNo. of listings 4700

MarketCap US$ 1.79 trillion (Dec 31, 2007)

Volume US$ 980 billion (2006)

Indexes BSE SensexWebsite www.bseindia.com

Introduction of BSE :-

The Bombay Stock Exchange Limited (Hindi: मुं��बई शे�यर बज़ार Mumbaī Śeyar Bājār) (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in world, with 4700 listed as of August 2007.[1] It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world.[2]

The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock exchange,[3] and it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.

Alliances

Singapore Exchange (SGX) made a strategic investment in Bombay Stock Exchange, acquiring 5% of its shares for US$42.7 million. It is consistent with the strategy of building an Asian Gateway for securities and derivatives. BSE is also considering to take part of the capitalisation of the rising ascension of its partner, Singapore Exchange, which is becoming a leading financial hub in Asia-Pacific.

BSE also claims a strategic partnership with Deutsche Borse

Hours of Operation

Beginning of the Day Session....8:00 - 9:00Login Session....9:00 - 9:30Trading Session....9:30 - 15:30Position Transfer Session....15:30 - 15:50Closing Session....15:50 - 16:05Option Exercise Session....16:05 - 16:35Margin Session....16:35 - 16:50Query Session....16:50 - 17:35End of Day Session....17:35

Note :- BSE's normal trading sessions are on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[4]

BSE indices

The BSE SENSEX (also known as the BSE 30 index) is a value-weighted index composed of thirty scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last twenty years. These companies account for around one-fifth of the market capitalization of the BSE.

Apart from BSE SENSEX, which is the most popular stock index in India, BSE uses other stock indices as well:

BSE 500 BSE 100 BSE 200

BSE PSU BSE MIDCAP BSE SMLCAP

BSE BANKEX BSE Teck BSE Auto

BSE Pharma BSE Fast Moving Consumer Goods (FMCG)

BSE Consumer Durables BSE Metal

National Stock Exchange (NSE):-

Introduction:-

The National Stock Exchange of India Limited or S&P CNX NIFTY (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.[1]. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities[2]. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India [3]. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.[4]It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.[5]

National Stock Exchange Limited or S&P CNX NIFTY

Type Stock ExchangeLocation Mumbai, India

OwnerNational Stock Exchange of India Limited

Key people Mr. Ravi Narain Managing Director

Currency INRNo. of listings 1587

MarketCap US$ 1.46 trillion (2006)

IndexesS&P CNX NiftyCNX Nifty JuniorS&P CNX 500

Website www.nse-india.com

Origins

NSE building at BKC

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

Innovations

NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts include:

Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model.

Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India.

Co-promoting and setting up of National Securities Depository Limited, first depository in India[2].

Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the

wide popularization of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly

on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives

Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India.

NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18, a

Markets

Currently, NSE has the following major segments of the capital market:

Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures

Hours

NSE's normal trading sessions are from 09:55am to 03:30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[6]

Indices

NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:

S&P CNX Nifty CNX Nifty Junior CNX 100 (= S&P CNX Nifty + CNX Nifty Junior) S&P CNX 500 (= CNX 100 + 400 major players across 72 industries) CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

About Nifty 50:-

The S&P CNX Nifty ( Nifty 50 or simply Nifty)  is a composite of the top 50 stocks listed on the National Stock Exchange (NSE), representing 24 different sectors of the economy. It is a

simplified tool that helps investors and ordinary people alike, to understand what is happening in the stock market and by extension, the economy. If the Nifty Index performs well, it is a signal that companies in India are performing well and consequently that the country is doing well.

An upbeat economy is usually reflected in a strong performance of the Nifty Index. A rising index is also indicative that the investors are gung-ho about the future. The Nifty Index is based upon solid economic research. It is internationally respected and recognized as a pioneering effort in providing simpler understanding of stock market complexities.

Nifty is the flagship index of NSE, the 3rd largest stock exchange in the world in terms of number of transactions (Stock Futures).

 

Ownership and Management

Nifty was developed by the economists Ajay Shah and Susan Thomas, then at IGIDR. Later on, it came to be owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's first specialized company focused upon the index as a core product. IISL have a consulting and licensing agreement with Standard & Poor's ( who are world leaders in index services.

CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices, to reflect the identities of both the promoters, i.e. NSE and CRISIL. Thus, 'C' stands for CRISIL, 'N' stands for NSE and X stands for Exchange or Index. The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services.

It is calculated as a weighted average, so changes in the share price of larger companies have more effect. The base is defined as 1000 at the price level of November 3, 1995

 

Criteria for inclusion of Stock in Nifty50

Average market capitalization of Rs.5,000 million or more during the last six months. Liquidity: Cost of transaction (impact cost) of less than 0.75% for more than 90% of

trades, over six months. At least 12% floating stock (not held by promoters of the company or their associates).

About Sensex :-

Q.1 What is SENSEX?

The SENSEX, short form of the BSE-Sensitive Index, is a "Market Capitalization-Weighted" index of 30 stocks representing a sample of large, well-established and financially sound companies. It is the oldest index in India and has acquired a unique place in the collective consciousness of investors. The index is widely used to measure the performance of the Indian stock markets. SENSEX is considered to be the pulse of the Indian stock markets as it represents the underlying universe of listed stocks at The Stock Exchange, Mumbai. Further, as the oldest index of the Indian Stock market, it provides time series data over a fairly long period of time (since 1978-79).

Q.2 What are the objectives of SENSEX?

The SENSEX is the benchmark index of the Indian Capital Markets with wide acceptance among individual investors, institutional investors, foreign investors and fund managers. The objectives of the index are:

To measure market movements Given its long history and its wide acceptance, no other index matches the SENSEX in reflecting market movements and sentiments. SENSEX is widely used to describe the mood in the Indian Stock markets.

Benchmark for funds performance The inclusion of blue chip companies and the wide and balanced industry representation in the SENSEX makes it the ideal benchmark for fund managers to compare the performance of their funds.

For index based derivative products Institutional investors, money managers and small investors all refer to the SENSEX for their specific purposes The SENSEX is in effect the proxy for the Indian stock markets. The country's first derivative product i.e. Index-Futures was launched on SENSEX.

Q.3 What are the criteria for selection and review of scrips for the SENSEX?

A. Quantitative Criteria:

1. Market Capitalization:The scrip should figure in the top 100 companies listed by market capitalization. Also market capitalization of each scrip should be more than 0.5 % of the total market capitalization of the Index i.e. the minimum weight should be 0.5 %. Since the SENSEX is a market capitalization weighted index, this is one of the primary criteria for scrip selection. (Market Capitalization would be averaged for last six months)

2. Liquidity:(i) Trading Frequency: The scrip should have been traded on each and every trading day for the last one year. Exceptions can be made for extreme reasons like scrip suspension etc. (ii) Number of Trades: Number of Trades: The scrip

should be among the top 150 companies listed by average number of trades per day for the last one year. (iii) Value of Shares Traded: Value of Shares Traded: The scrip should be among the top 150 companies listed by average value of shares traded per day for the last one year.

3. Continuity: Whenever the composition of the index is changed, the continuity of historical series of index values is re-established by correlating the value of the revised index to the old index (index before revision). The back calculation over the last one-year period is carried out and correlation of the revised index to the old index should not be less than 0.98. This ensures that the historical continuity of the index is maintained.

4. Industry Representation: Scrip selection would take into account a balanced representation of the listed companies in the universe of BSE. The index companies should be leaders in their industry group.

5. Listed History: The scrip should have a listing history of at least one year on BSE.

B. Qualitative Criteria:

Track Record: In the opinion of the Index Committee, the company should have an acceptable track record.

Q.4 How is SENSEX calculated?

SENSEX is calculated using a "Market Capitalization-Weighted" methodology. As per this methodology, the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. (The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company). An index of a set of a combined variables (such as price and number of shares) is commonly referred as a 'Composite Index' by statisticians. A single indexed number is used to represent the results of this calculation in order to make the value easier to work with and track over time. It is much easier to graph a chart based on indexed values than one based on actual values.

The base period of SENSEX is 1978-79. The actual total market value of the stocks in the Index during the base period has been set equal to an indexed value of 100. This is often indicated by the notation 1978-79=100. The formula used to calculate the Index is fairly straightforward. However, the calculation of the adjustments to the Index (commonly called Index maintenance) is more complex.

The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.

Q.5 How is the closing Index calculated?

The closing SENSEX is computed taking the weighted average of all the trades on SENSEX constituents in the last 15 minutes of trading session. If a SENSEX constituent has not traded in the last 15 minutes, the last traded price is taken for computation of the Index closure. If a SENSEX constituent has not traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.

What is a Repo Rate?

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive

CRR Rate in India

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.

What is SLR Rate?

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit.

Primary market trends:-

A primary trend has broad support throughout the entire market or market sector and lasts for a year or more.

Bull market

A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of future price increases and future capital gains. In

describing financial market behavior, the largest group of market participants is often referred to, metaphorically, as a herd. This is especially relevant to participants in bull markets since bulls are herding animals. A bull market is also sometimes described as a bull run. Dow Theory attempts to describe the character of these market movements.

India's BSE Index SENSEX was in a bull run for almost one year from January 2007 to January 2008 as it increased from 14,000 points to 21,000 points. Another notable and recent bull market was in the 1990s when the U.S. and many other global financial markets rose rapidly.

Bear market

A bear market is described as being accompanied by widespread pessimism. Investors anticipating further losses are often motivated to sell, with negative sentiment feeding on itself in a vicious circle. The most famous bear market in history was preceded by the Wall Street Crash of 1929 and lasted from 1930 to 1932, marking the start of the Great Depression. A milder, low-level, long-term bear market occurred from about 1973 to 1982, encompassing the stagflation of U.S. economy, the 1970s energy crisis, and the high unemployment of the early 1980s.

Prices fluctuate constantly on the open market; a bear market is not a simple decline, but a substantial drop in the prices of the majority of stocks in a given market over a defined period of time. According to The Vanguard Group, "While there’s no agreed-upon definition of a bear market, one generally accepted measure is a price decline of 20% or more over at least a two-month period."[4]

Most Popular Stock Exchanges Of The World:-

Exchange Location Founded Listings Short name

IndiaAhmedabad Stock Exchange Ahmedabad 1894 2000 ASE

Bangalore Stock Exchange Bangalore 1963 600 BgSE

Bhubaneshwar Stock Exchange Bhubaneshwar 1956 BhSE

Bombay Stock Exchange Mumbai 1875 4909 BSE

Calcutta Stock Exchange Kolkata 1830 CSE

Cochin Stock Exchange Kochi 1989 CSE

Coimbatore Stock Exchange Coimbatore 1998 CSX

Delhi Stock Exchange Association New Delhi 1947 3000 DSE

Guwahati Stock Exchange Guwahati 1983 GSE

Hyderabad Stock Exchange Hyderabad 1943 900 HSE

Inter-connected Stock Exchange of India Kolkata ISE

Jaipur Stock Exchange Jaipur 1989 750 JSE

Kanara Stock Exchange Mangalore

Ludhiana Stock Exchange Association Ludhiana 1983 LSE

Madhya Pradesh Stock Exchange Indore MPSE

Madras Stock Exchange Chennai 1920 1500 MSE

Meerut Stock Exchange Meerut 1956National Stock Exchange of India Mumbai 1992 1398 NSE

OTC Exchange of India Mumbai 1990 OTCEI

Pune Stock Exchange Pune 1982 PSE

Saurashtra Kutch Stock Exchange Rajkot 1989 SKSE

Uttar Pradesh Stock Association Kanpur 1982 850 UPSE

Vadodara Stock Exchange Vadodara/Baroda 1990 VSE

NepalNepal Stock Exchange Kathmandu 1993 125 NEPSE

PakistanIslamabad Stock Exchange Islamabad 1989 ISE

Karachi Stock Exchange Karachi 1947 KSE

Lahore Stock Exchange Lahore 1970 LSE

Sialkot Stock Exchange Sialkot 2005 LSE

Sri LankaColombo Stock Exchange Colombo 1896 243 CSE

BangladeshDhaka Stock Exchange Dhaka 1954 DSE

AFRICAN STOCK EXCHNGES

GhanaGhana Stock Exchange* Accra 1990 28 GSE

KenyaNairobi Stock Exchange* Nairobi 1954 48 NSE

Nigeria

Nigerian Stock Exchange* Lagos 1960 223 NSE[1]

South AfricaAltX Johannesburg 2003 51 ALTX

Bond Exchange of South Africa Johannesburg 1989 ~400 BESAJSE Securities Exchange* Johannesburg 1887 472 JSE

The South African Futures Exchange Johannesburg 1990 SAFEX

ZimbabweZimbabwe Stock Exchange* Harare 1993 ZSE

list of American stock exchanges

CanadaCanada's New Stock Exchange Toronto CNQ

Montréal Exchange Montréal 1872 MX

United StatesAmerican Stock Exchange New York City AMEX

Boston Stock Exchange Boston 1834 BSE

Chicago Stock Exchange Chicago 1882 CHX

HedgeStreet San Mateo HedgeStreet

National Stock Exchange Chicago 1885 NSX

New York Board of Trade New York City 1998 NYBOT

New York Stock Exchange New York City 1817 NYSE

NYSE Arca New York City 2006 NYSE Arca

Philadelphia Stock Exchange Philadelphia 1790 PHLX

Nasdaq Canada New York City 2000Nasdaq Canada

Toronto Stock Exchange Toronto 1861 TSX

TSX Venture Exchange Toronto 2001 TSX

BrazilBovespa São Paulo 1895 Bovespa

Rio de Janeiro Stock Exchange Rio de Janeiro BVRJBrazilian Mercantile and Futures Exchange São Paulo 1971 BM&FBolsa de Cereais e Mercardorias de Maringá 1982 BCMM

list of European stock exchanges .

EuropeEuronext Paris Euronext

OMX Stockholm OMX

GermanyBerliner Börse Berlin 1685 Börse Berlin

Börsen Hamburg und Hannover Hannover BÖAG

Börse München München 1830Börse München

Deutsche Börse Group Frankfurt

Deutsche Börse Group

Eurex Frankfurt 1998 EUREX

Frankfurt Stock Exchange Frankfurt FWB

Denmark

Copenhagen Stock Exchange Copenhagen 2003OMX Nordic Market

ItalyBorsa Italiana Milano 1997 BIt

RomaniaBucharest Stock Exchange Bucharest 1882 BVB

Rasdaq Bucharest 1996 Rasdaq

Sibiu Stock Exchange Sibiu 1997 BMFMS

RussiaMoscow Interbank Currency Exchange Moscow 1992 MICEX

Russian Trading System Moscow 1995 RTS

Saint Petersburg Stock Exchange Saint Petersburg SPBEX

Netherlands

Euronext AmsterdamEuronext Amsterdam

Spain

Bolsa de Valores de Barcelona BarcelonaBolsa de Barcelona

Bolsa de Valores de Bilbao BilbaoBolsa de Bilbao

Madrid Stock Exchange Madrid 1831Bolsa de Madrid

Mercado Oficial Español de Futuros y Opciones Madrid 1989 MEFF

Bolsa de Valores de Valencia ValenciaBolsa de Valencia

SwedenNordic Growth Market Stockholm 2003 NGM

Stockholm Stock Exchange Stockholm 1863OMX Nordic Market

SwitzerlandSwiss Exchange Zurich 1850 SWX

Bern eXchange Bern 1888 BX

Turkey

Istanbul Stock Exchange Istanbul

1866-1984 ISE

United KingdomLondon Stock Exchange London 1801 2800 LSE

Eastern Caribbean Securities Exchange Basseterre ECSEBahamas International Securities Exchange BISX

Barbados Stock Exchange Bridgetown BSE

Bermuda Stock Exchange 1871 BSX

list of stock exchanges of Southwest Asia and the Greater Middle East.

IranIranian Oil Bourse Tehran Proposed IOBTehran Stock Exchange Tehran TSE

IraqIraq Stock Exchange Baghdad 2004 ISX

JordanAmman Stock Exchange Amman ASE

Libya

Libyan Stock Exchange* Benghazi

United Arab EmiratesAbu Dhabi Securities Market Abu Dhabi ADSM

Dubai Financial Market Dubai DFM

Dubai International Financial Exchange Dubai DIFX

The role of stock exchanges:-

Raising capital for businesses

Mobilizing savings for investment

Facilitating company growth

Redistribution of wealth

Corporate governance

Creating investment opportunities for small investors

Government capital-raising for development projects

Barometer of the economy

Major stock exchanges:-

Twenty Major Stock Exchanges In The World: Market Capitalization & Year-to-date Turnover at the end of October 2007

Region   Stock Exchange  Market Value

(trillions of US dollars)  

Total Share Turnover

(trillions of US dollars)  

Africa JSE Securities Exchange $0.940 $0.349Americas NASDAQ $4.39 $12.4Americas São Paulo Stock Exchange $1.40 $0.476Americas Toronto Stock Exchange $2.29 $1.36Americas/Europe NYSE Euronext $20.7 $28.7Asia-Pacific Australian Securities Exchange $1.453 $1.003

South Asia Bombay Stock Exchange $1.61 $0.263Asia-Pacific Hong Kong Stock Exchange $2.97 $1.70Asia-Pacific Korea Exchange $1.26 $1.66South Asia National Stock Exchange of India $1.46 $0.564Asia-Pacific Shanghai Stock Exchange $3.02 $3.56Asia-Pacific Shenzhen Stock Exchange $0.741 $1.86Asia-Pacific Tokyo Stock Exchange $4.63 $5.45

EuropeFrankfurt Stock Exchange (Deutsche Börse)

$2.12 $3.64

Europe London Stock Exchange $4.21 $9.14

EuropeMadrid Stock Exchange (Bolsas y Mercados Españoles)

$1.83 $2.49

EuropeMilan Stock Exchange (Borsa Italiana)

$1.13 $1.98

EuropeMoscow Interbank Currency Exchange (MICEX)

$0.9652 $0.4882

EuropeNordic Stock Exchange Group OMX 1

$1.38 $1.60

Europe Swiss Exchange $1.33 $1.58