Business & Finance Stocks-Mutual-Funds

A Synopsis Of The Bse

The BSE, Asias oldest bourse, has changed the very facet of the Indian economy since its functioning 134 years ago. Raising of capital funds, steering the growth of many companies is the key contribution of the globally acclaimed national stock exchange. BSE is also termed as BSE 30, as it comprises of 30 stocks the largest and most actively traded representing assorted sectors. The trading of these stocks commenced in January 1986. The BSE 30 companies today account for more or less one-fifth of the market capitalization of the stock exchange. The BSE index, represented by the Sensex, is calculated in the free-float method, reflecting current market conditions. Shares that are readily available for trading rather than outstanding shares constitute the BSE stock prices. If you are an investor in the BSE stock market, watching the latest BSE stock prices and accordingly taking trading decisions as per market conditions will ensure true value for your money. The BSE index has shown a record growth since the year 1990, increasing by over ten times till date.

The opening of direct market access is BSEs innovative model introduced in the year 2008, facilitating trading which could be routed straight from a clients system. It does not require any human involvement; the broker need not look into the details of the process. This system of trading is termed as the algorithmic model; the greatest advantage of this system being the reduction in execution time, increasing the feasibility of algorithmic trades. In the process, complex mathematical relationships are used for investment recommendations in the BSE among a number of technical, economic and fundamental factors.

The SME segment holds a major chunk in the BSE listing; but the number has plunged down during the last five years. From an estimated 3,174 SMEs representing the BSE index five years ago, the number now stands at 2,814. This has affected the overall turnover of the BSE. The key reason behind the decrease is the investors hesitancy or cautious approach in buying SME stocks as most SME companies listed on the BSE come under scanner, especially when surveillance measures are applied by the stock exchange. The SME BSE stock prices are thus less taken into account by investors. Moreover, SMEs are subjected to stringent listing guidelines with no defined rules for de-listing of SME stocks and absence of any guarantee for the said stocks have further resulted in their downtrend.
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