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In the fast growing Indian financial market, there are 23 stock exchanges trading securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and most advanced exchange with 1016 companies listed and 726 trading members.

The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the ownership as well as the management does not have a right to trade on the Exchange. Only qualified traders can be involved in the securities trading.

The NSE is one of the few exchanges in the world trading all types of securities on a single platform, which is divided into three segments: Wholesale Debt Market (WDM), Capital Market (CM), and Futures & Options (F&O) Market. Each segment has experienced a significant growth throughout a few years of their launch. While the WDM segment has accumulated the annual growth of over 36% since its opening in 1994, the CM segment has increased by even 61% during the same period.

The National Stock Exchange of India has stringent requirements and criteria for the companies listed on the Exchange. Minimum capital requirements, project appraisal, and company's track record are just a few of the criteria. In addition, listed companies pay variable listing fees based on their corporate capital size.

The National Stock Exchange of India Ltd. provides its clients with a single, fully electronic trading platform that is operated through a VSAT network. Unlike most world exchanges, the NSE uses the satellite communication system that connects traders from 345 Indian cities. The advanced technologies enable up to 6 million trades to be operated daily on the NSE trading platform.

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National Stock Exchange of India Profile :

Address

National Stock Exchange of India Ltd.Exchange Plaza,Plot no. C/1, G Block,Bandra-Kurla ComplexBandra (E)Mumbai - 400 051

Telephone (022) 26598100 - 8114

Web SiteClick here for the National Stock Exchange of India web site

Trading Hours 9.30 am - 4.30 pm.

Holidays Bakri Id (11 Jan), Republic Day (26 Jan), Moharram (9 Feb), Holi (15 Mar), Ram Navami (6 Apr), Mahavir Jayanti (11 Apr), Ambedkar Jayanti (14 Apr), Maharashtra Day (1 May), Independence Day (15 Aug), Gandhi Jayanti (2 Oct), Laxmi Puja (21 Oct), Bhaubeej (24 Oct), Ramzan Id (25 Oct), Christmas (25 Dec)

Securities Equities, bonds, CPs, CDs, warrants, mutual funds units, ETFs, derivatives.

Trading System Fully automated screen based trading platform NEAT

Key Staff S.B. Mathur - ChairmanRavi Narain - Managing Director and CEO

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History of the National Stock Exchange of India :

Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the incorporation of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has become the largest stock exchange in India.

Three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world.

In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's.

In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).

The LOAN procedure analyzes and compares fixed rate, adjustable rate,

buydown, and balloon payment loans. The LOAN procedure computes the loan

parameters and outputs the loan summary information for each loan.

Multiple loan specifications can be processed and compared in terms of economic

criteria such as after-tax or before-tax present worth of cost and true interest rate,

breakeven of periodic payment and of interest paid, and outstanding balance at

different periods in time. PROC LOAN selects the best alternative in terms of the

specified economic criterion for each loan comparison period.

The LOAN procedure allows various payment and compounding intervals

(including continuous compounding) and uniform or lump sum prepayments for a

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loan. Down payments, discount points, and other initialization costs can be

included in the loan analysis and comparison.

The LOAN procedure does not support an input data set. All loans analyzed are

specified with statements in the PROC LOAN step. The SAS DATA step provides

a function MORT that can be used for data-driven analysis of many fixed-rate

mortgage or installment loans. However, the MORT function supports only simple

fixed rate loans.

Getting Started: LOAN Procedure

PROC LOAN supports four types of loans. You specify each type of loan with the

corresponding statement: FIXED, BALLOON, ARM, and BUYDOWN.

FIXED—Fixed rate loans have a constant interest rate

and periodic payment throughout the life of the loan.

BALLOON—Balloon payment loans are fixed rate

loans with lump sum payments in certain payment

periods in addition to the constant periodic payment.

ARM—Adjustable rate loans are those in which the

interest rate and periodic payment vary over the life of

the loan. The future interest rates of an adjustable rate

loan are not known with certainty, but they will vary

within specified limits according to terms stated in the

loan agreement. In practice, the rate adjustment terms

vary. PROC LOAN offers a flexible set of options to

capture a wide variety of rate adjustment terms.

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BUYDOWN—Buydown rate loans are similar to

adjustable rate loans, but the interest rate adjustments

are predetermined at the initialization of the loan,

usually by paying interest points at the time of loan

initialization.

Technical Analysis of Indian stock market BSE Sensex Index

The BSE SENSEX is not only scientifically designed but also based on globally

accepted construction and review methodology. First compiled in 1986, SENSEX is

a basket of 30 constituent stocks representing a sample of large, liquid and

representative companies. The base year of SENSEX is 1978-79 and the base value

is 100. The index is widely reported in both domestic and international markets

through print as well as electronic media.

Technical Analysis of Indian stock market BSE Sensex Index

The Index was initially calculated based on the "Full Market Capitalization"

methodology but was shifted to the free-float methodology with effect from

September 1, 2003. The "Free-float Market Capitalization" methodology of index

construction is regarded as an industry best practice globally. All major index

providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the Free-float

methodology.

Due to is wide acceptance amongst the Indian investors; SENSEX is regarded to be

the pulse of the Indian stock market. As the oldest index in the country, it provides

the time series data over a fairly long period of time (From 1979 onwards). Small

wonder, the SENSEX has over the years become one of the most prominent brands

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in the country.

Technical Analysis of Indian stock market BSE Sensex Index

1 Day Technical Analysis Chart of Indian stock market BSE Sensex Index

5 Day Technical Analysis Chart of Indian stock market BSE Sensex Index

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1 Year Technical Analysis Chart of Indian stock market BSE Sensex Index

 

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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. 

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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. 

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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 What is the beta of SENSEX scrips? 

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Beta measures the sensitivity of a scrip movement relative to movement in the

benchmark index i.e. SENSEX. A Beta of one means that for every change of 1% in

index, the scrip moves by 1%. Statistically Beta is defined as: Covariance

(SENSEX, Stock )/ Variance(SENSEX)

Note: Covariance and variance are calculated from the Daily Returns data of the

SENSEX and SENSEX scrips.

Q.5 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

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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.6 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.

Q.7 How is the routine maintenance of SENSEX carried out? 

One of the important aspects of maintaining continuity with the past is to update the

base year average. The base year value adjustment ensures that additional issue of

capital and other corporate announcements like bonus etc. do not destroy the value

of the index. The beauty of maintenance lies in the fact that adjustments for

corporate actions in the Index should not per se affect the index values. 

The Index Cell of the Exchange does the day-to-day maintenance of the index

within the broad index policy framework set by the Index Committee. The Index

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Cell takes special care to ensure that SENSEX and all the other BSE indices

maintain their benchmark properties by striking a delicate balance between high

turnover in Index scrips and its representative character. The Index Committee of

the Exchange has experts from different field of finance related to the capital

markets. They include Academicians, Fund-managers from leading Mutual Funds,

Finance - Journalists, Market Participants, Independent Governing Board members,

and Exchange administration.

Q.8 How are adjustments for Bonus, Rights and newly issued Capital carried

out in SENSEX? 

The arithmetic calculation involved in calculating SENSEX is simple, but problem

arises when one of the component stocks pays a bonus or issues rights shares. If no

adjustments were made, a discontinuity would arise between the current value of

the index and its previous value. The Index Cell of the Exchange periodically

adjusts the base value to take care of such corporate announcements. 

Adjustments for Rights Issues: 

When a company, included in the compilation of the index, issues right shares, the

market capitalisation of that company is increased by the number of additional

shares issued based on the theoretical (ex-right) price. An offsetting or

proportionate adjustment is then made to the Base Market Capitalisation (see ' Base

Market Capitalisation Adjustment' below). 

Adjustments for Bonus Issue: 

When a company, included in the compilation of the index, issues bonus shares, the

market capitalisation of that company does not undergo any change. Therefore,

there is no change in the Base Market Capitalisation, only the 'number of shares' in

the formula is updated. 

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Other Issues: Base Market Capitalisation Adjustment is required when new shares

are issued by way of conversion of debentures, mergers, spin-offs etc. or when

equity is reduced by way of buy-back of shares, corporate restructuring etc. 

Base Market Capitalisation Adjustment: The formula for adjusting the Base

Market Capitalisation is as follows: 

New Base Market Capitalisation = Old Base Market Capitalisation X (New Market

Capitalisation/Old Market Capitalisation)

 

To illustrate, suppose a company issues right shares which increases the market

capitalisation of the shares of that company by say, Rs.100 crores. The existing

Base Market Capitalisation (Old Base Market Capitalisation), say, is Rs.2450 crores

and the aggregate market capitalisation of all the shares included in the index before

the right issue is made is, say Rs.4781 crores. The "New Base Market Capitalisation

" will then be: Rs.2501.24 crores = 2450 X (4781+100)/4781 

This figure of 2501.24 will be used as the Base Market Capitalisation for

calculating the index number from then onwards till the next base change becomes

necessary.

Q.9 With what frequency is SENSEX calculation done? 

During market hours, prices of the index scrips, at which trades are executed, are

automatically used by the trading computer to calculate the SENSEX every 15

seconds and continuously updated on all trading workstations connected to the BSE

trading computer in real time.

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Banking

Influenced by the global financial turmoil and repercussion of the subprime crisis, the global banking sector has been witness to some of the largest and best known names succumb to multi-billion dollar write-offs and face near bankruptcy. However, the Indian banking sector has been well shielded by the central bank and has managed to sail through most of the crisis with relative ease. Further with the economic buoyancy the world over showing signs of cooling off, the investment cycle has also been wavering. Having said that, the latent demand for credit (both from the food and non food segments) and structural reforms have paved the way for a change in the dynamics of the sector itself. Besides gearing up for the compliance with Basel II accord, the sector is also looking forward to consolidation and investments on the FDI front.

Public sector banks have been very proactive in their restructuring initiatives be it in technology implementation or pruning their loss assets. While the likes of SBI have made already attempts towards consolidation, others are keen to take off in that direction. Incremental provisioning made for asset slippages have safeguarded the banks from witnessing a sudden impact on their bottomlines.

Retail lending (especially mortgage financing) that formed a

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significant portion of the portfolio for most banks in the last two years lost some weightage on the banks' portfolios due to their risk weightage. However, on the liabilities side, with better penetration in the semi urban and rural areas the banks garnered a higher proportion of low cost deposits thereby economising on the cost of funds.

Apart from streamlining their processes through technology initiatives such as ATMs, telephone banking, online banking and web based products, banks also resorted to cross selling of financial products such as credit cards, mutual funds and insurance policies to augment their fee based income.

 Key Points

Supply Liquidity is controlled by the Reserve Bank of India (RBI).

Demand India is a growing economy and demand for credit is high though it could be cyclical.

Barriers to entry Licensing requirement, investment in technology and branch network.

Bargaining power of suppliers

High during periods of tight liquidity. Trade unions in public sector banks can be anti reforms. Depositors may invest elsewhere if interest rates fall.

Bargaining power of customers

For good creditworthy borrowers bargaining power is high due to the availability of large number of banks

Competition High- There are public sector banks, private sector and foreign banks along with non banking finance companies competing in

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similar business segments.

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 Financial Year '09

The liquidity crisis that swept the heavyweights of global financial sector off their feet in FY09 did affect the entities in Indian banking sector as well, albeit marginally. Other than the temporary crunch after bankruptcy of Lehman Brothers, the global financial meltdown was weathered by banks in India with relative ease. The monetary stimuli (reduction in repo rate, cash reserve ratio (CRR) and statutory liquidity ratio (SLR)) offered to the banks by the RBI made things easier. Despite the severe liquidity pressure and poor credit appetite at the retail and corporate levels, Indian banks managed to grow their advances and deposits by 24% YoY and 22% YoY respectively in FY09. The growth was mainly driven by a sharp expansion in term deposits and growth in agricultural and large corporate credit. Having said that, higher delinquency levels in retail credit and debt restructuring took its toll on the sector.

Indian Banks : Marginal signs of stress

  FY08 FY09 Change

No. of banks (nos.) 79 78 -1.3%

Branches (nos.) 776 825 6.3%

Employees (nos.) 11,588 12,039 3.9%

Networth (Rs m) 39,940 47,080 17.9%

Deposits (Rs m) 420,260 519,700 23.7%

Advances (Rs m) 313,540 383,890 22.4%

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NIM (%) 4.1 4.4 7.3%

RoA (%) 1.1 1.1 0.0%

CAR (%) 13.0 14.0 7.7%

Net NPA / advances (%) 1.0 1.1 5.0%

Bus. / employee (Rs m) 63.3 75.0 18.5%

Profit /employee (Rs m) 0.5 0.6 20.0%

Source: Profile of banks FY09

Indian banks also enjoyed higher levels of money supply, credit and deposits as a percentage of GDP in FY09 as compared to that in FY08 showing improved maturity in the financial sector.

Despite poor pricing power lower cost of funds helped Indian banks grow their net interest margins in FY09. While few like ICICI Bank chose to reduce their balance sheet size, most entities chose to reasonably grow their franchise as well as

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assets. Public sector banks outdid their private sector counterparts in terms of growth and franchise expansion in the last fiscal. Improved capital adequacy also helped banks to comfortably comply with Basel II. The higher efficiency levels were the hallmarks of better performance of Indian banks last year.

Most banks had to restructure some loans in their portfolio during FY09 which deferred their interest income. Further the PSU banks had also to provide for the loss of interest on the agri-loans waived by the government.

With lesser avenues of credit disbursal, banks had to park most of the liquidity available with them with the RBI. At the end of FY09, banks' investment in SLR securities increased to 28.1% of total deposits from 27.8% in FY08 and higher than the RBI prescribed level of 24%. Feeble credit offtake coupled with the fear of bad loans going up in the scenario of economic slowdown prompted banks to park their surplus funds with the RBI.

In FY09, as per the RBI mandate, all foreign banks operating in India and Indian banks having operational presence outside India migrated to the Basel II norms. All other commercial banks have been encouraged to migrate to these approaches not later than FY10.

TOP

 Prospects

With banks having complied with Basel II and having sufficient capital in their books; it will be a challenge to deploy the same safely and profitably in the event of persistence of economic slowdown. Banks are likely to concentrate more on non funded income in this scenario.

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Banks, especially the private sector ones, are likely to face penetration concerns. The lack of credit penetration and the geographic concentration of bank credit is evident from the fact that 5 states having the highest proportion of per capita credit enjoy 55% of the total credit disbursals in the country.

RBI's roadmap for the entry of foreign banks and the acquisition of stake by the foreign entities in Indian private banks has been deferred for the time being. However, the tussle for higher market share in the already fragmented sector is only set to aggravate.

The proposal for Cabinet's approval to allow PSU banks to bring down the government's stake in them below the stipulated 51%, which is yet to be tabled, can help the bank raise substantial capital without borrowing at high rates and give the entities an opportunity to enhance their capital adequacy ratios besides competing with their private sector peers.

History

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

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Services

BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. 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. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements.

BSE also has a wide range of services to empower investors and facilitate smooth transactions:

Investor Services

The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities.

BSE On-line Trading (BOLT)

BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in India.

BSEWEBX.com

In February 2001, BSE introduced the world's first centralized exchange-based Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform.

Surveillance

BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-time measurement of default risk, market reconstruction and generation of cross market alerts.

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BSE Training Institute (BTI)

BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of the capital market and financial sector. More than 20,000 people have attended the BTI programmes

Time-line

Following is the timeline on the rise and rise of the Sensex through Indian stock market history.

1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.

1860-1865 Cotton price bubble as a result of the American Civil War

1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal

1978-79 Base year of Sensex, defined to be 100.

1986 Sensex first compiled[5] using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies across key sectors.

30 October 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.

5 December 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.

6 July 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the Sensex to move from 14,000 to 15,000 points.

19 September 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.

The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.

26 September 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began, the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high. The Sensex ended with a gain of 22 points at 16,921.

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9 October 2007 The BSE Sensex crossed the 18,000-mark on October 9, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.

15 October 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

29 October 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of 19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60 points.

8 January 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.

13 June 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21, 2008

25 June 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week.

2 July 2008 The sensex hit an intra day low of 12,822.70 on July 2, 2008. This is the lowest that it has ever been in the past year. Six months ago, on January 10, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd.

6 October 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.

10 October 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063 points. Thus, this week turned out to be the week with largest percentage fall in the SenseX

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18 May 2009 After the result of 15th Indian general election Sensex gained 2110.79 points from the previous close of 12173.42, a record one-day gain. In the opening trade itself the Sensex evinced a 15% gain over the previous close which led to a two-hour suspension in trading. After trading resumed, the Sensex surged again, leading to a full day suspension of trading.

BSE indices

For the premier stock exchange that pioneered the securities transaction business in India, over a century of experience is a proud achievement. A lot has changed since 1875 when 318 persons by paying a then princely amount of Re. 1, became members of what today is called Bombay Stock Exchange Limited (BSE).

Over the decades, the stock market in the country has passed through good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. BSE, in 1986, came out with a Stock Index-SENSEX- that subsequently became the barometer of the Indian stock market.

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index was renamed BSE-100 Index from October 14, 1996 and since then, it is being calculated taking into consideration only the prices of stocks listed at BSE. BSE launched the dollar-linked version of BSE-100 index on May 22, 2006.

With a view to provide a better representation of the increasing number of listed companies, larger market capitalization and the new industry sectors, BSE launched on 27th May, 1994 two new index series viz., the 'BSE-200' and the 'DOLLEX-200'. Since then, BSE has come a long way in attuning itself to the varied needs of investors and market participants. In order to fulfill the need for still broader, segment-specific and sector-specific indices, BSE has continuously been increasing the range of its indices. BSE-500 Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECk Index. Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU index).

BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.

The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies.

All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee which comprises eminent independent finance professionals frames the broad policy guidelines for the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices. [1]

Nse

Sensex correlation with emerging market indices

Sensex is significantly correlated with the stock Indices of other emerging markets[6][7]

Awards

The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).

The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the ICAI awards for excellence in financial reporting.

The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology