72nd Independence Day and 143 Years of Stock Market History
INDIA has walked 71
years of its Independence from 69450
days (Approx. 190.27 years, from 23rd June Thursday 1757 to 15th
August Friday 1947) British rule.
Today’s story is not based on Shining India; we have to go
143 years back. Yes, 1875 AD, native India already past 118 years of British rule.
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| banyan tree trading |
BSE – Seed of Indian
Stock Market Journey
The then Viceroy of India was The
Lord Northbrook. Then price of Silver was 56 ¾ pence
per troy ounce and Rupee exchange rate was 21 ¾ (in pence). Indian population
was 256 million.
One native Indian out of 256 million, Premchand Roychand thought some
exceptional. He is the founder of BSE (formally known as Bombay Stock Exchange
Ltd).
He was the most influential businessman of
19th century Bombay. The man was
known as Cotton-King or Big Bull. Now BSE is oldest stock exchange of Asia and ranks 10th position globally with
a market capitalization of over 1.6 trillion.
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| BSE |
On 31st August 1957, the BSE
become the FIRST stock exchange recognize by Government of India under
the security and contract regulation act. In 1980, the exchange was move to Jeejeeybhoy Tower, Dalal Street.
The benchmark Index SENSEX was first
complied in 1986. Since 1st September 2003, the 30 share barometer
is being calculated on a free float market capitalization methodology.
NSE – The Main Root of
Indian Stock Market
The National Stock Exchange (NSE) is the leading
stock exchange in India.
And the fourth largest in the world by equity trading volume in 2015, according
to the World Federation Of Exchange (WFE). It began operation in 1994.
NSE launched electronic screen-based trading in 1994,
derivative trading (in the form of FNO) and internet trading at 2000.
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| NSE |
Some steps which NSE has taken to make it
up-to-date and more competitive. NSE sings Post – Trade Technology and
Strategic Partnership Agreement with NASDAQ.
Announces launch of Tri-Party Repo
on Corporate Debt Securities. NSE become the first Indian exchange to be
part 30 exempted by Commodity Future Trading Commission (CFTC), enable
to access US clients.
Introduce of Cross Currency Derivative
contracts on EURO-USD, GBP-USD and USD-JPY.
This year NSE celebrating 25 years of it’s’
journey.
FII – The Golden Path
for Indian Stock Market
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| FII |
In the year 1992, the Foreign
Institutional Investors were allowed for the first time to invest
in Indian equity market directly. Just after the historic economic
liberalization, India
seemed to be an attractive destination for the foreign investors.
Since then, Indian stock
market, to a large extent, have been fueled by the FII.
Harshad Mehta – Fist Black patch
Indian Stock Market
In the early 1990s the men become the
biggest stock market operator on the Dalal
Street. The scam amount was nearly 5000 crore.
Mehta manipulated market by heavy buying
with borrow money which was siphoned from Nationalized Banks. After the scam
discovered BSE was close by one month.
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| SCAM |
Byrraju Ramalinga Raju
– Big Scammer
Raju resigned from the Satyam board after admitting
to falsifying revenues, margings and over ₹ 5,000 crore of
cash balance as the company.
The Indian
affiliate of PricewaterhouseCoopers, the company’s auditors, appears to have
certified the company had USD 1.1 Billion in cash when the real number was USD
78 million.
Double
Upper Circuit – Nifty jumped 28% within 2 Sessions
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| JUMP |
On 15th
May Friday’2009, Nifty Future low was 3625. on 18th May Monday’2009 at 09:45 am Nifty Future opened at increased 10% within 60 second, after one hours of
closing NSE open again, then Nifty Future jump by 5% within few second of opening.
According SEBI guideline market was shouting down for the
day. On the next day Nifty Future made high 4620, total gain was 995 points in two trading sessions.
Present
Day – Sensex, Nifty are making life time high
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| Life Time High |
Sensex made life time high 38076.23, where Nifty 50 made life time high 11495.95 on 8th
August 2018. And Nifty Future made lifetime high at 11504.25 on 9th August 2018.
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Source:
(i)
B.E. Dadachanji. History of Indian
Currency and Exchange, 3rd enlarged ed.
(ii)
Bombay
Stock Exchange
(iii)
National Stock Exchange
(iv)
The Hindu Achieve
(v)
The Calcutta
Gadget
