Bombay Stock Exchange (BSE)

The Bombay Stock Exchange (BSE) is one of the oldest and largest stock exchanges in India, located in Mumbai (formerly known as Bombay). Established in 1875 as the Native Share and Stock Brokers' Association, the BSE has a long history of facilitating the trade of stocks, bonds, and other financial instruments in the Indian market.

The BSE has over 5,000 listed companies, making it one of the world's largest stock exchanges in terms of listed companies. The exchange provides a platform for trading in equity, debt, derivatives, and currency derivatives. The BSE also offers mutual fund trading, interest rate futures, and other financial products and services.

One of the most widely recognized indices associated with the BSE is the S&P BSE SENSEX, commonly referred to as the SENSEX. This index comprises the 30 largest and most actively traded companies listed on the BSE, representing various sectors of the Indian economy. The SENSEX is a market-capitalization-weighted index, meaning that each company's weight in the index is determined by its market capitalization. It serves as a benchmark for investors and analysts to evaluate the performance of the Indian equity market and make investment decisions.

The BSE has introduced electronic trading and other technological advancements to improve the efficiency and transparency of its operations. In 1995, the BSE switched from open outcry floor trading to an electronic trading system known as the BSE Online Trading (BOLT) system. Today, the BSE operates under a fully automated, screen-based trading platform, making it easier for investors and traders to participate in the market.

The Bombay Stock Exchange plays a crucial role in the development of the Indian capital market, fostering economic growth by providing a platform for companies to raise capital and for investors to invest in various financial instruments.