A CHILD FINANCE MANAGER
Author: SENTHIL KUMAR
BSE INDICES
For the premier stock exchange that pioneered the securities transaction
Over the decades, the stock market in the country has passed through
good and bad periods. The journey in the 20th century has not been an
easy one. Till the decade of eighties, there was no measure or scale that
could precisely measure the various ups and downs in the Indian
stock market. BSE, in 1986, came out with a Stock Index-SENSEX-
that subsequently became the barometer of the Indian stock market.
The launch of SENSEX in 1986 was later followed up in January 1989
by introduction of BSE National Index (Base: 1983-84 = 100).
It comprised 100 stocks listed at five major stock exchanges in India - Mumbai,
Calcutta, Delhi, Ahmedabad and Madras.
The BSE National Index was renamed BSE-100 Index from October 14, 1996 and
since then, it is being calculated taking into consideration only
the prices of stocks listed at BSE. BSE launched the dollar-linked version of
BSE-100 index on May 22, 2006.
With a view to provide a better representation of the increasing
number of listed companies, larger market capitalization and
the new industry sectors, BSE launched on 27th May, 1994 two
new index series viz., the 'BSE-200' and the 'DOLLEX-200'.
Since then, BSE has come a long way in attuning itself to the
varied needs of investors and market participants. In order to
BSE disseminates information on the Price-Earnings Ratio,
the Price to Book Value Ratio and the Dividend Yield Percentage
on day-to-day basis of all its major indices.
The values of all BSE indices are updated every 15 seconds
during market hours and displayed through the BOLT system,
BSE website and news wire agencies.
All BSE Indices are reviewed periodically by the BSE Index Committee.
This Committee which comprises eminent independent finance professionals
frames the broad policy guidelines for the development and maintenance
of all BSE indices. The BSE Index Cell carries out the day-to-day
maintenance of all indices and conducts research on development of new indices.