Indian Stock Market
The work of the Indian Stock Exchange began in 1875. BSE is India's oldest stock market. The history of Indian stock trading began with 318 people joining the Indigenous Equities and Stock Brokers Association, which we now know about the Mumbai Stock Exchange or BSE. In 1965, BSE was recognized by the Indian government. The National Stock Exchange ranked second in popularity. BSE and NSE say they are synonymous with the Indian stock market. The history of the Indian stock market is almost the same as the history of mad cow disease.
30-bit sensitive index or Sensex was first compiled in 1986. Sensex is based on the performance of 30 financial firm benchmarks. In 1990, BSE exceeded 1000 for the first time. It was in 2000 over 2000, 3000 and 4000 numbers. The huge surge in the stock market was due to the then Minister of Finance Minister Man Moham Singh announced the free fiscal policy.
The rising mood of the market suddenly lost with the Harshad Mehta scam. As we all know, Mr. Mehta (also known as the Indian stock market Daniel) through fraudulent means to transfer the huge amount of money from the bank. He played about 270 million shares of about 90 companies. Millions of small investors became victims of fraud, Sensex fell 570 points.
In order to prevent such fraud, the Government passed a bill in 1992 to set up the Indian Securities and Exchange Commission. And supervise the operation of stock exchanges, brokers, branch brokers, portfolio managers, investment advisers and so on. SEBI must take several stringent measures to protect the interests of investors. Now with the start of online trading and daily settlement, the chances of fraud are zero, SEBI's top officials said.
Sensex crossed the 5000 mark in 1999 and crossed the 6000 mark in 2000. The 7000 mark crossed in June, 8000 marks on September 8, 2005. Many foreign institutional investors (FII) invest in Indian stock markets very large. Free economic policies pursued by successive governments have attracted foreign institutional investors on a large scale. Experts now believe that sensex can exceed 14,000 marks by 2010.
The unpredictable behavior of the market gives it a label – a turbulent market. The factors that influenced the market in the past were good monsoon, Bharatiya Janatha party power. The result of the cricket match between India and Pakistan also affected the Indian stock market movement. The National League for Democracy led by the Democratic League failed to try to ride the market sentiment in the 2004 public elections. NDA was conferred power, feeling the biggest decline in the day, because worried that the Congressional Communist Party would delay economic reform. Later Prime Minister Man Moham Singh with a humanized reform to ensure that the fear and market response quickly hit the 8500 record.
India, after the United States to host the largest number of listed companies. Global investors are now eager to seek India as their preferred place to invest. Once suspected, the stock market is now attracting middle class Indians. Many of the Indians working abroad are now transferring their savings to the stock. The recent phenomenon is the result of an open online transaction and a decline in bank interest rates. Indian-based stockbrokers set up offices in different countries, mainly to meet the needs of non-Indians. The time factor also applies to NRI. They can buy or sell shares online after returning from the workplace.
Recent events that have contributed to the increase in Indian middle class interest are Tata Consultancy Services, Maruti Udyog Limited, ONGC such. Good monsoon always improves market sentiment. A good monsoon means improving agricultural products and increasing the spending power of rural people.
The bullish operation of the stock market may be about 6% steady growth in GDP, India's support for multinational growth, telecommunications, mass media, education, tourism and IT sector economic reforms to ensure that the Indian stock market continues Its bull market.