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An index of the 30 most actively traded stocks on the Bombay Stock Exchange
(BSE). The Sensex is considered the most important benchmark index on the BSE,
and it is the oldest stock index in India. Unlike many indices, it is
not weighted for price or market capitalization, but rather for "free-float
capitalization." This is similar to market capitalization, but uses shares available
for trade rather than the total shares outstanding. Thus, it excludes shares that have
not been vested, among others. Sensex is formally known as the Bombay
Exchange Sensitive Index.

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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 SENSEX is the benchmark index for the Indian stock
market. The objectives of the index are as follows:
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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.

2. 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.

3. 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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A stock exchange is an entity which provides "trading" facilities for stock brokers
and traders, to trade stocks and other securities. In other words´ A building and the
associated organization that trades stocks in of companies for money and vice
versa.´ Also we can say stockc exchange is an entity which provides "trading"
facilities for stock brokers and traders, to trade stocks and other securities. Stock
exchanges also provide facilities for the issue and redemption of securities as well
as other financial instruments and capital events including the payment of income
and dividends. The securities traded on a stock exchange include shares issued by
companies, unit, derivatives, pooled investment products and bonds.

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In ·
0, the exchange flourished with
0 brokers. In fact the 'Share Mania' in India
began when the American Civil War broke and the cotton supply from the US to
Europe stopped. Further the brokers increased to 250.

At the end of the war in · , the market found a place in a street (now called
Dalal Street). In · , "Native Share and Stock Brokers' Association" was
established. In · 5, the exchange acquired a premise in the street which was
inaugurated in · .Stock Exchanges in India also assist the issue and release of
securities and other monetary tools incorporating the fortification of revenues and
dividends. c
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·. National Stock Exchange (NSE) of India

NSE is 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 ·0·
companies listed
and 2
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 3

since its opening in ·, the CM segment has increased by even
· 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 35 Indian cities. The advanced technologies enable up to
million
trades to be operated daily on the NSE trading platform.

2. Bombay Stock Exchange (BSE) of India

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history
to the · 50s, when  Gujarati and · Parsi stockbroker 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 ·  and in · 5 became an official
organization known as 'The Native Share & Stock Brokers Association'. In
·5
, 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 ·
, 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 200·
and 2002, expanding the BSE's trading platform. Historically an open outcry
floor trading exchange, the Bombay Stock Exchange switched to an electronic
trading system in ·5. It took the exchange only fifty days to make this
transition. This automated, screen-based trading platform called BSE On-line
trading (BOLT) currently has a capacity of 0 lakh orders per day. The BSE has
also introduced the world's first centralized exchange-based internet trading
system, BSEWEBx.co.in to enable investors anywhere in the world to trade on
the BSE platform.

Some BSE Figures and Facts

Kc BSE exchange was the first in India to launch Equity Derivatives, Free Float
Index, USD adaptation of BSE Sensex and Exchange facilitated Internet
buying and selling policy
Kc BSE exchange was the first in India to acquire the ISO authorization for
supervision, clearance & Settlement
Kc BSE exchange was the first in India to have launched private service for
economic training
Kc Its On-Line Trading System has been felicitated by the internationally
renowned standard of Information Security Management System.

3. Regional Stock Exchanges (RSE) of India

The Regional Stock Exchanges started clustering from the year · , when the
first RSE, the Ahmadabad Stock Exchange (ASE) was established. In the year
·0 , the second in the series, Calcutta Stock Exchange (CSE) came into
existence.

During the early sixties, there were only few recognized RSEs in India namely
Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore. The number
remained unchanged for the next two decades. · 0s was the turning point and
many RSEs was incorporated. The latest is Coimbatore Stock Exchange and
MeerutStockExchange.

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Kc Ahmadabad Stock Exchange
Kc Bangalore Stock Exchange
Kc Bhubaneswar Stock Exchange
Kc Calcutta Stock Exchange
Kc Cochin Stock Exchange
Kc Coimbatore Stock Exchange
Kc Delhi Stock Exchange
Kc Guwahati Stock Exchange
Kc Hyderabad Stock Exchange
Kc iaipur Stock Exchange
Kc Ludhiana Stock Exchange
Kc Madhya Pradesh Stock Exchange
Kc Madras Stock Exchange
Kc Magadh Stock Exchange
Kc Mangalore Stock Exchange
Kc Meerut Stock Exchange
Kc OTC Exchange Of India
Kc Pune Stock Exchange
Kc Saurashtra Kutch Stock Exchange
Kc Uttar Pradesh Stock Exchange
Kc Vadodara Stock Exchange

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âAccording to international iournal of Accounting and Finance
(IiAF):]
Various research studies undertaken in the Indian and international context
highlighting the effect of various fundamental factors on the behavior of the
stock market. This paper tries to identify the critical variables which have a
significant effect on stock price movements and influence the entire market's
movement. The 30 shares constituting the Bombay Stock Exchange-Sensitivity
Index (BSE-SENSEX or SENSEX) are used as proxies to capture the entire
stock market's movement. Appropriate statistical techniques have been used to
establish a meaningful relationship among various explanatory variables
identified through the empirical analysis considering the available research
studies. The explanatory variables, which act as major determinants of stock
price movements, are condensed into a few critical factors by factor analysis
and the relevance of these factors in influencing stock market movements is
explained in detail. The analysis shows (Global Markets,Recession In Any
Countries Economy,Demand And Supply,Inflation,Debit/Credit, Liquidity With
Banks,IPOs¶,Futures,Systematic & Unsystematic) and also higher earning
power, Returns on Investment (ROIs), growth possibility and favorable
valuation have a positive impact on the share price and stock market movement,
while higher risk and volatility have a negative impact. These factors can be
used as major analytical tools by investors, corporations and brokers to make
rational and intelligent investment decisions.c

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