| Introduction and brief history | | | | years ago in 1992. In that short period of time, it has |
| The Indian stock market today is actually comprised | | | | grown to nearly 1,600 company listings and has a |
| of two key entities and over 20 other exchanges. | | | | current market capitalization of 47,01,923 Rupees |
| These 2 primary entities are the Bombay Stock | | | | (Wikipedia). It was predicted that the NSE would be |
| Exchange Limited and the NSE or the National Stock | | | | the largest stock exchange in India where market |
| Exchange of India Limited. There is an interesting | | | | capitalization was considered when 2009 ended. |
| past history regarding where the two markets | | | | Up until the 1980's there was no way to measure or |
| originated from. During the 1850's, the first stock | | | | scale the ups and downs in stock values. However, in |
| exchange in India was established when the East | | | | 1986, the BSE implemented SENSEX, which was a |
| India Company created and developed a "community" | | | | stock index. Three years later, India witnessed the |
| of brokers. | | | | launch of the BSE National Index. It was renamed the |
| By 1860, there were already 60 broker members of | | | | BSE-100 Index in October of 1996 because it was |
| the exchange. As of 1874 and the results of a rapidly | | | | comprised of 100 different stocks listed with India's 5 |
| expanding share trading industry, these brokers | | | | major stock exchanges. These 5 major markets |
| gathered regularly (at a well-know location which is | | | | were Ahmedabad, Calcutta, Delhi, Madras, and |
| now known as Dalal Street) in order to conduct their | | | | Mumbai. Additionally, the dollar-linked version of the |
| business. Stockbrokers began gathering in front of | | | | BSE-100 was launched in May of 2006. |
| Mumbai's Town Hall, conducting there meeting | | | | Numerous banks, financial intermediaries, insurance |
| underneath Banyan trees, and the Indian stock | | | | companies, and leading financial institutions mutually |
| market was born. | | | | own the NSE. However, the entities of management |
| Although there are actually over 20 different stock | | | | and ownership are completely separate entities. |
| exchanges in India today, but the two most powerful | | | | Interestingly enough, 2 of the NSE's foreign investors |
| ones are the two mentioned above. The Bombay | | | | have taken a serious position in the NSE - Goldman |
| Stock Exchange Limited oftentimes referred to as | | | | Sachs and NYSE Euronext. |
| the BSE, was originally established in 1875. | | | | Differences between the BSE and the NSE |
| Interestingly enough, it is the oldest stock market on | | | | The key difference between the BSE and the NSE is |
| the entire Asian continent that has been operating | | | | that the former is not automated yet, although |
| since the very beginning. Today there are over 4,700 | | | | progress is being made to achieve full automation, |
| companies listed on the BSE as well as over 7,700 | | | | whereas the latter is a fully automated exchange |
| stock exchange scripts. | | | | complete with the electronic processing of market |
| The National Stock Exchange of India Limited, or NSE | | | | orders. There are over 2,000 stocks now listed with |
| as it is called, is an Indian stock market based in the | | | | the NSE while over 4,700 have been listed with the |
| city of Mumbai and was originally established only 18 | | | | BSE. |