Mutual Funds

What Is Bombay Stock Exchange?

Bombay Stock Exchange is located in Mumbai. It traces its roots to 1850s when a group of stockbrokers would meet under a banyan tree to buy and sell shares. Now it is chambered in Phiroze Jeejeebhoy Towers at Dalal Street, Fort in Mumbai. BSE has more than 5000 listed companies and is the biggest in terms of market capitalization.

Sensex is a value weighted index of BSE and comprises of 30 stocks which represent large, well established companies across key sectors. A company should fulfill the following conditions to be listed on Sensex:

• Should be listed atleast 3 months ago on Bombay Stock Exchange

• Should be traded every day in the last three months on Bombay Stock Exchange

• Should be among top 75 companies according to market capitalization

• Should have a good track record

Companies are then filtered first according to absolute turnover and then according to cumulative turnover. Those who make the list are then sorted according to sectors.

The stocks listed on BSE Sensex are Bajaj Auto, BHEL, Bharti Airtel, Cipla, DLF, HDFC, HDFC Bank, Hero Honda, Hindalco, Hindustan Lever, ICICI Bank, Infosys, ITC, Jindal Steel, Jaiprakash Associates, Larsen & Toubro, Mahindra & Mahindra, Maruti Suzuki, NTPC, ONGC, Reliance Communication, Reliance Industries, Reliance Infrastructure, State Bank of India, Sterlite Industries, Tata Consultancy Services, Tata Motors, Tata Power, Tata Steel and Wipro.

Some of the other indices are Midcap Index and Smallcap Index. The sectoral indices include IT, Technology Media and Telecom, Power, Oil & Gas, Healthcare, Metal, Banking, PSU, Consumer Durable, Auto, Capital Goods, FMCG, and Real Estate Index.

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