You can seldom find an Indian stock trader or mutual fund investor who has never heard of SENSEX. The BSE SENSEX has traditionally been the flagbearer of the Indian equity market. All investors, irrespective of the capital, look at the SENSEX index to design their trading and investment strategies.
BSE or Bombay Stock Exchange is the oldest stock exchange in India. SENSEX refers to the top thirty stocks in BSE. The movement of the SENSEX reflects the broad momentum of the Indian equity market. If the SENSEX grows, the market is said to be bullish. Conversely, if the SENSEX declines, the market is believed to be bearish.
This article explains BSE or Bombay Stock Exchange in detail, including its history, stockholders, companies listed, services offered, active stocks, and other details,
Most active Stocks on BSE by Trading Volumes
Here are the most active stocks by trading volumes (in Crores) on BSE (as of ):
Top Companies on BSE by Market Capitalisation
Here are the Top-30 companies in BSE by market capitalisation:
Which are the Top Companies in BSE by Market Capitalisation?
The History of the Bombay Stock Exchange
The Bombay Stock Exchange, popularly known as the BSE, is the oldest stock exchange in Asia. It was founded on 9th July 1875. BSE is also the world’s fastest stock exchange, offering trading speeds of an unbelievable 6 seconds.
It is believed that the foundation of BSE was laid by a famous Jain businessman and cotton trader, Premchand Roychand, who established the Native Share and Stock Brokers Association under a banyan tree near Mumbai Town Hall in the mid-19th century. All traders gathered near the banyan tree to place bids and receive company stocks.
Unlike online trading, the entire process was paper-based then. Gradually, as the size and volume of the market started growing, the authorities sensed the need to establish an institution to handle the money and shares in an orderly way. This led to the establishment of the Bombay Stock Exchange (BSE) in 1875.
Between 1875 and 1928, BSE was situated in a building near the Mumbai Town Hall. In 1928, the exchange acquired a plot near Horniman Circle. It took two years for the building to get constructed and the new BSE building became operational in 1930. To honour BSE and its activities, the street was renamed Dalal Street. Dalal means broker in Hindi.
In 1957, the Indian Government gave recognition to the BSE under the Securities Contracts Regulations Act. BSE’s popular index, the S&P BSE SENSEX index, was developed in 1986 to offer an insight into the exchange’s overall performance.
And, BSE’s derivatives segment was founded in 2000, offering investors access to the S&P BSE SENSEX index futures contracts. Furthermore, the options market was also opened by 2002, further expanding the BSE’s reach.
Like all other conventional stock exchanges of those days, BSE also followed an open outcry system in floor trading. However, they switched to an electronic trading system in 1995. The electronic trading system was developed by CMC Ltd. The exchange surprised everyone with the speed with which it facilitated the transition from offline to online.
In fact, it took just fifty (50) days to convert from floor trading to online trading. The screen-based, online trading platform was named BOLT, an abbreviated form of BSE On-Line Trading. It could facilitate eight (8) million orders every day.
Presently, the BSE is a Partner Exchange of the United Nations Sustainable Stock Exchange initiative. It joined the body in September 2012. BSE also set up the India INX, India’s first international stock exchange, on 30th December 2016.
BSE enables trading in over 5,000 companies, making it one of the largest stock exchanges in the world. The other big stock exchanges in the world include the New York Stock Exchange (NYSE), the National Association of Securities Dealers Automated Quotations NASDAQ), the London Stock Exchange (LSE), the Shanghai Stock Exchange (SSE), and the Japan Exchange Group.
The Stockholders of the Bombay Stock Exchange
The BSE Initial Public Offering (IPO) was launched on 23rd January 2017. The BSE stock is currently listed on the National Stock Exchange (NSE). The stock holding pattern of BSE ( as of 31st March 2020) is as follows:
Trading Members and Associates of Trading Members - 32.44%
The top shareholders of BSE include the following:
Deutsche Boerse AG
Life Insurance Corporation of India
IDFC Mutual Fund
State Bank of India
Acacia Banyan Partners Limited
National Westminster Bank PLC as Trustee of The Jupiter India Fund
Caldwell India Holdings INC
Akshay Vasantlal Mehta
ICICI Prudential Mutual Fund
How Many Companies Are Listed on the Bombay Stock Exchange?
The total number of companies listed on the Bombay Stock Exchange is 5,246 (as of 8th February 2022). The All India market capitalisation of the stocks listed on BSE is INR 26,451,334.95 crore. And, the top-10 companies' market capitalisation is INR 7,319,611.40 crore.
The total equity turnover of BSE stocks in the financial year 2020-21 was INR 10,45,089.56 crore in 249 trading days, a sharp jump from INR 6,60,896.03 crore in 2019-20 in 247 days.
More than 250 stockbrokers are registered with BSE. These include Professional Clearing Member (PCM), Limited Trading Member (LTM), Trading Cum Clearing Members (TCM), Trading Member (TM), and Trade Cum Self Clearing Member (SCM). Click on this link to check the updated list of brokers associated with the BSE.
What are the Services Offered by BSE?
The trading system of BSE is similar to NSE. Investors willing to trade in the share market need to approach a BSE-empanelled broker, such as 5paisa. After opening an account, investors can access the 5000+ BSE stocks and place buy or sell trades. They can also trade in the derivatives segment. All investors trading in the BSE tracks the SENSEX closely. They use the SENSEX index to understand the market pulse and place trades. Besides indicating the market condition, the SENSEX index also speaks volumes about the economy's health.
BSE allows trading in two-time slots - the pre-opening market and the regular market. The pre-open session starts at 9 AM and ends at 9:15 AM. And, the regular trading hours start at 9:15 AM and end at 3:30 PM.
Why Do Companies List on BSE?
Listing on BSE is a commonly taken decision by companies for the following reasons:
Get Funds For Business Expansion or Debt Consolidation - Listing on BSE helps you accept money from investors for expanding your business or consolidating your debt.
Reputation - Listing increases a company’s reputation and makes it easy for getting funds. Also, a company’s shareholders can liquidate their shares to get money instantly.
Safe Transactions - Since BSE oversees all trades and transactions, the money transfer process is 100% safe.
What are the Top Indices on BSE?
Besides the S&P BSE SENSEX, there are many other indices on BSE. The following are a few:
S&P BSE Bharat 22 Index
S&P BSE Energy
S&P BSE Infrastructure
S&P BSE 100 ESG
S&P BSE India Bond
What are the Trading Categories on BSE?
BSE facilitates trading in various categories, such as equity, futures & options, and fixed income instruments.
5paisa Provides Easy Access to BSE Stocks
A 5paisa free Demat and trading account acts as the gateway to over 5,000 BSE stocks. You can conveniently open an account and start trading right away. The account opening process takes no more than five minutes. So, what are you waiting for? Experience next-generation broking services with 5paisa’s intuitive online trading platform.