Top News

Share Market History: Today the Indian stock market is counted among the largest and most influential financial markets in the world. The Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, once started under a banyan tree in Mumbai. The small initiative of five businessmen over time brought global recognition to India’s stock market.

It started under the banyan tree

The history of BSE dates back to the year 1850. At that time, under a banyan tree located in front of the Town Hall of Mumbai, four Gujarati and a Parsi businessmen used to deal in shares and cotton business. Gradually the number of brokers and traders started increasing here and this place became the center of the beginning of organized share trading in India.

About five years later, in view of the increased activity, traders set up a permanent office, which later became the Bombay Stock Exchange (BSE).

How did Dalal Street become known?

Stock brokers later also started doing business around Meadows Street and MG Road Junction. With time this area became famous as Dalal Street. The Native Share and Stock Brokers Association was established in the year 1875, which is considered to be the beginning of the first organized stock exchange in India. At that time, 318 members had formed this organization by paying an entry fee of only Re 1.

Premchand Raichand is considered the father of BSE.

Premchand Raichand, a famous businessman from Bombay, is considered the father of BSE. He was among the founding members of the Native Share and Stock Brokers Association. After India’s independence, in the year 1957, the government granted official recognition to BSE under the Securities Contract (Regulation) Act. After this, BSE Sensex was launched in 1986, whose base year was 1978-79 and base value was fixed at 100 points.

Great journey of Sensex

The Sensex crossed the 1,000-point level for the first time on 25 July 1990. After this, it reached 10,000 mark on 6 February 2006. Almost 15 years later, on 24 September 2021, the Sensex also touched the historical level of 60,000 points. During this period, there was a sharp increase in both the number of investors and investment in the Indian stock market.

Today’s status of BSE

Today there are more than 5,000 companies listed on the Bombay Stock Exchange and its Sensex reflects the performance of the country’s 30 leading companies. Germany’s Deutsche Boerse and Singapore Exchange are its strategic partners. The number of demat accounts and investors in India has crossed 11 crores, reflecting the growing investment culture in the country.

India among world’s top stock markets

On the basis of market capitalization, the Indian stock market is among the top markets in the world. America is at first place in this list, followed by China, Japan and Hong Kong, while India is at fifth place. The strong role of BSE and NSE has significantly contributed to establishing India as a major force in the global financial market.