The Indian stock market cannot be identified without the BSE (Bombay Stock Exchange). It is the oldest stock exchange not only in India but also in Asia; it commenced operations in the year 1875 steered by 22 enterprising brokers. Gradually companies started getting enlisted and in current times, the exchange boasts of enlisting the largest number of companies. There are near to 6000 BSE companies comprising of blue chip conglomerates, SMEs, and other small companies. For several years, it has been common investors in large numbers who have invested in BSE companies, and have contributed to the growth of the Indian capital market. In return, investors have also gained from the market.
Investment in the stock market is no doubt risky. The investor has to consider all pros and cons and take into account current trends to invest. Impulsive decisions cannot bring one gains. Not all BSE companies show growth trend at a stretch, as these are influenced by market fluctuations. Their growth depends on the rise and fall of the market. So, if you invest in shares that have good profit potential, you will gain and vice versa. It is not that easy to select potential shares. It is only careful selection after proper research that you can buy the right stocks.
Performance of the companies listed in the BSE is calculated in terms of sensex. If you watch news or log in to any financial platform or online news platform, it is the BSE sensex figures that get displayed. If you go into the details, this very BSE index will familiarize you with the performance of the companies including the shares that are traded. The BSE sensex or BSE index comprises of 30 stocks – the largest and the most actively traded representing assorted sectors. These are calculated on a free float capitalization method. The shares calculated are those that are readily available for trading, excluding restricted stocks. During the last two decades, the BSE index has increased by over ten times. It witnessed a major downtrend during the recent recession but the figures have soon picked up momentum.
Sourav Sharma is freelance market analyst and is writing reviews articles on BSE companies, BSE sensex, BSE index.