Trade on Mumbai Stock Trade With the ideal Demat Account
Bombay Stock Exchange, as mentioned in the name itself, is situated in Mumbai, India. The stock exchange is one of the oldest and the most important exchanges in India. Bombay Stock Exchange, popularly by its short form BSE, was established during the 1850s which involved a group of various stockbrokers congregating under a tree for buying and selling shares. However in the present day, the exchange is located in the Phiroze Jeejeebhoy Towers at Dalal Street in Mumbai. BSE has currently over 5000 best demat account in India listed organizations and is biggest with respect to market capitalization.
To be more specific, during 1850s, one parsi and four Gujarati stockbrokers used to assemble under banyan tree for share trading. They were gradually joined by many more brokers due to which the meeting place had to be changed at times. However, the meeting place was made permanent in Dalal Street in the year 1874. By the year 1875, this was given an official structure under ‘The Native Share & Stock Brokers Association’.
Sensex, short of Sensational Index, is an index used by BSE that is actually a value-weighted index. Sensex is a basket of 30 major stocks that represent well established and leading companies throughout critical sectors.
In order to get listed on Mumbai Stock Exchange, an organization has to fulfill some of the criteria, which includes listing of the company in-question at least three months prior on BSE. Other conditions include trading of the company’s stock on a daily basis in the preceding 3 months on the exchange, and excellent track record of the company. Other than that, the company has to be counted among the top 75 organizations in terms of market capitalization.
After this, the organizations are sorted as per the absolute turnover, following which they are sorted as per their cumulative turnover. Stocks currently listed on the BSE Sensex include Tata Consultancy Services, NTPC, Maruti Suzuki, Reliance Communication, State Bank of India, ICICI Bank, Hindustan Lever, among others.
Other indices in the Mumbai Stock Exchange include Smallcap Index and Midcap Index. Sectoral indices are also present, such as IT, Power, Technology Media & Telecom, Oil and Gas, Metal, Healthcare, PSU, Banking, Consumer Durable, Capital Goods, Auto, Real Estate and FMCG Index.
BSE, or other stock exchanges for that matter, are hold significant amount of importance. There is hardly any financial news in the country can be complete sans capital market related news. In fact, most of the people are aware of only BSE and National Stock Exchange whenever the mention of India’s capital market comes up.