Indian Stock Market History

The stock markets in India began way back in 1875. The BSE (Bombay Stock Exchange) is the most established stock exchange in India.

The history of Indian stock trading begins with 318 persons taking membership in “Native Share and Stock Brokers Association” which we now know as the BSE. In the year 1965, BSE got eternal recognition from the Government of India.

Good Read: 9 Key Financial Ratios to Find Winning Stocks

The NSE (National Stock Exchange) comes next to BSE in terms of recognition. BSE and NSE symbolize themselves as synonyms of Indian stock market.

The 30 stock sensitive index (popularly known as Sensex) was first piled up in 1986. The Sensex is compiled based on the performance of the stocks of 30 financially sound companies.

In the year 1990, the BSE crossed the 1000 mark for the 1st time. It crossed 2000, 3000 and 4000 marks in 1992. The sole reason for such tremendous surge in the Indian stock market was the liberal financial policies announced by Dr. Man Mohan Singh (finance minister of India at that time)

Scam in the Indian Stock Market

The uptrend of the market was all of a sudden lost momentum with Harshad Mehta fraud. It came to public knowledge that Mr. Harshad Mehta, also known as the big bull of Indian stock market redirected immense funds from banks through deceitful means.

He played his part with 270 million shares of around 90 odd companies. A large number of small-size investors became victims of the scam and the Sensex fell more than 570 points.

To avoid such scams in future, the Government of India formed SEBI (The Securities and Exchange Board of India) in 1992. SEBI is the constitutional body that regulates and controls the functioning of stock exchanges, investment advisors, portfolio managers’ brokers, sub-brokers etc.

Must Read: 5 Lessons to Learn From Long Term Investors

SEBI oblige several rigid measures to protect the interest of investors. Now with the commencement of online trading and day by day settlements the chances for a fraud is almost nil, says top authorities of SEBI.

Sensex started its journey again after as many as eight years and crossed the 5000 mark for the 1^st time in the year 1999 and the 6000 mark in 2000. The 7000 mark was crossed in June and the 8000 mark on September 8 in 2005 itself.

Many FII (Foreign Institutional Investors) are investing in Indian stock markets on a very large scale. The liberal economic policies pursued by successive Governments attracted FIIs to a large scale. Sensex touched 9000 on 28 November 2005 and reached the magical figure of 10000 two and half years later on 6 February 2006.

BSE Sensex History

Published since 1st January 1986, Sensex is regarded as the pulse of the domestic stock markets in India. The base value of the Sensex is taken as 100 on 1 April 1979, and its base year as 1978-79.

Here is the sensex journey from 1,000 to 62,000

In July 1990, the Sensex touched the 4-digit figure for the first time and closed at 1,001.

In January 1992, the Sensex crossed the 2,000 mark and closed at 2,020.

In February 1992, the Sensex surged past the 3,000 mark for the 1st time.

In March 1992, the Sensex crossed the 4,000 mark and closed at 4,091.

In October 1999, the Sensex crossed the 5,000 level.

In February 2000, the Sensex hit an all-time high of 6,000 points.

In June 2005, the Sensex crossed 7,000 points for the first time.

In September 2005, the Sensex crossed 8,000 level.

In December 2005, the Sensex first closed at over 9,000 points.

In February 2006, the Sensex finally closed above the 10,000 mark.

In March 2006, the Sensex crossed 11,000 points.

In April 2006, the Sensex crossed 12,000 level.

In October 2006, the Sensex crossed 13,000 mark for the first time.

In December 2006, the Sensex crossed the 14,000 mark for the first time.

In July 2007, the Sensex crossed the 15,000 mark for the first time.

In September 2007, the Sensex crossed the 16,000 mark for the first time.

In September 2007, the Sensex crossed the 17,000 mark for the first time.

In October 2007, the Sensex crossed the 18,000 mark for the first time.

In October 2007, the Sensex crossed the 19,000 mark for the first time.

In December 2007, the Sensex closed above 20,000 points.

In November 2010, the Sensex closed above 21,000 points.

In March 2014, the Sensex closed above 22,000 level.

In May 2014, the Sensex crossed record 23,000 level for the 1st time.

In May 2014, the Sensex crossed record 24,000 mark for the first time.

In May 2014, the Sensex crossed record 25,000 level for the first time.

In July 2014, the Sensex crossed record 26,000 level for the very first time.

In September 2014, the Sensex closed above 27,000 level.

In November 2014, the Sensex closed above 28,000 mark for the 1st time.

In January 2015, the Sensex crossed the 29,000 mark.

In March 2015, the Sensex closed above 30,000 level for the 1st time in history.

In May 2017, the Sensex crossed record 31,000 mark for the first time.

In July 2017, the Sensex crossed record 32,000 level for the very first time.

In October 2017, the Sensex crossed the 33,000 mark for the first time.

In December 2017, the Sensex closed above 34,000 points.

In January 2018, the Sensex crossed the 35,000 mark.

In January 2018, the Sensex crossed the 36,000 mark for the first-time.

In July 2018, the Sensex crossed the 37,000 mark for the first time.

In August 2018, the Sensex crossed 38,000 level.

In April 2019, the Sensex crossed 39,000 level.

In May 2019, the Sensex crossed record 40,000 mark for the first time.

On 26th November 2019, the Sensex surpassed 41,000 level for the first time.

On 16th January 2020, the BSE Sensex crossed 42,000 mark for the very first time

On 10th November 2020, the Sensex crossed 43,000 level.

On 18th November 2020, the Sensex crossed 44,000 level.

On 4th December 2020, the Sensex surpassed 45,000 level for the first time.

On 9th December 2020, the BSE Sensex crossed 46,000 mark for the very first time.

On 18th December 2020, the Sensex crossed 47,000 level.

On 4th January 2021, the Sensex crossed 48,000 level for the first time.

On 11th January 2021, the Sensex crossed 49,000 mark for the first time.

On 21st January 2021, the BSE Sensex crossed 50,000 mark for the very first time.

On 8th February 2021, the BSE Sensex crossed 51,000 mark for the first time.

On 15th February 2021, the Sensex crossed 52,000 level for the first time.

On 23rd June 2021, the Sensex crossed 53,000 mark for the first time.

On 4th August 2021, the BSE Sensex touched 54,000 mark for the very first time.

On 13th August 2021, the Sensex crossed 55,000 level for the first time.

On 24th August 2021, the BSE Sensex crossed 56,000 level for the very first time.

On 31st August 2021, the Sensex crossed 57,000 level for the first time.

On 3rd September 2021, the Sensex crossed 58,000 level for the first time.

On 16th September 2021, the BSE Sensex crossed 59,000 level for the first time.

On 24th September 2021, the Sensex surged past 60,000 mark for the 1st time.

On 14th October 2021, the Sensex surpasses 61,000 mark for the 1st time.

On 16th November 2022, the Sensex surpasses 62,000 level for the 1st time.

Factors That Affect the Stock Market

The impulsive actions of the market gave it a tag – a volatile market. The factors that influenced the market in the past were a good monsoon, election results, international events (BREXIT was the latest issue) etc. Good monsoons all the time raise the market sentiments. A good monsoon typically means improved agricultural produce and more spending capacity among rural folk. The result of a cricket match between India and Pakistan (also with the other nation) also affected the movements in Indian stock market.

Listed Companies on the Stock Exchange

India, after the United States, hosts the largest number of listed companies on the stock exchange. There are as many as 7200 companies listed in India (5,500+ companies listed in BSE and 1,696 companies listed on NSE; Just keep in mind that these numbers are flexible and can change overnight).

Recommended Read: 7 Silly Mistakes Small Equity Investor Often Commits

Once upon a time viewed with cynicism, stock market now appeals to middle-class and lower middle-class Indians also. Many Indians settled across the globe now divert their savings to stocks. This recent phenomenon is the result of opening up of online trading in India and diminished interest rates from banks. The stockbrokers based in India are opening offices in different countries mainly to cater the needs of NRIs (Non-Resident Indians).

Bombay Stock Exchange Listing

January 23, 2017, was the day when BSE (Bombay Stock Exchange) come up with IPO (15,427,197 Equity Shares of Rs 2 aggregating up to Rs 1,243.43 Cr) with an issue price of Rs. 805 – Rs. 806 per Equity Share.

Also Read: Top 6 Reasons Why Companies Go For Share Buyback

And it was February 3, 2017, the day when Asia’s oldest bourse BSE listed at a robust premium to the offer price. Against the offer price of Rs 806, the BSE stock was listed at Rs 1,085 a 35% premium.

With this NSE IPO can now be expected to come soon.

Must Read

Finblab Value Pick Stock of the Month

APL Apollo Tubes ltd

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Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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You may get lured by such returns and hoping to get the same. But, multifold returns are achievable only through high-risk asset class investing (like the stock market). In regards to this, I would like to share ten such tips that help you investing successfully.

1) Start Early for Successful Equity Investing

The early you start investing the more time your money will have to grow. Let’s see this example.

You started investing INR 5,000 per month at the age of 40. In the next 20 years your investing amount comes to 12 lakhs (INR 5,000 x 240 months). Considering an average 7 percent return per year, your investing amount would worth 25.5 lakhs when you reach 60.

Now, if you started investing 10 years earlier, your INR 5,000 would add 18 lakhs (INR 5,000 x 360 months) over next 30 years. Assuming same 7 percent return your amount would grow to 58.8 lakhs when you reach 60 (more than double return)

The bottom line is – if you delay, you will have to invest more to achieve similar returns.

You may like this: Early Retirement Planning: Why It Is So Important

2) Keep Some Cash Aside

It is always a good idea to put some money aside in the case of emergencies.

As a thumb rule, one should save enough to cover at least 3 months’ living expenses. Always make sure you can withdraw this saving whenever you need it and that too without any penalties.

3) How Much Risk You Can Take

In many ways, the key organ for investing is the stomach and not the brain.

If you are going to lose your sleep every time your share prices go through bad phases – it is better to stay away. It is vital that one should know his/her risk-taking capabilities and then act accordingly.

Must Read: 9 Key Financial Ratios to Find Winning Stocks

4) Keep Inflation in Mind

Inflation is known as a ticking time bomb. Don’t believe – let’s see.

If you have INR 10,000 in a savings account earning 4 percent interest each year. In 20 years time period, your savings would be worth INR 22,911. That’s almost double return (129 %). However, if the inflation rate is about 7 percent, your INR 22,911 would only be worth INR 5,920 in today’s term!

The bottom line is – In order to achieve significant long-term return; you need to make your money work harder.

5) How Long You Can Invest

If you’re going to need your money in the near future to fulfill necessities like a down payment on a house or other than the stock market is not the place to be.

Look at the stock market only if you are prepared to invest your money for 5 to 10 years or even longer. Because when you invest for a longer term then time will be on your side – but you must stick to it.

Must Read: 5 Lessons to Learn From Long Term Investors

6) Spread Your Investment

It is rarely a good idea to invest all your money in one single basket.

Depending on your goals and risk taking capabilities, you will need to spread your investment across different sectors and categories (like Bonds, Cash, and Equities). But do not over diversified.

7) Invest Regularly for Successful Equity Investing

Investing regularly is a great way to create a significant lump sum amount. By doing this you will get the benefit of something fabulous known as rupee cost of averaging. This means that if you invest regularly, over the years, irrespective of stock market goes up or down, you will pay the average price.

Also Read: Systematic Investment Plan: How Advantageous

8) Choose Your Investment Option Carefully

One should select investment option (equity, mutual funds or bonds) based on personal circumstances and goals.

The fundamental goal of investing is not to simply invest your money just for the sake of investing. It is to invest based on your requirements.

9) Do Not Time The Market

When planning an investment, it can be tempting to wait for the market to fall. Because research suggests that even market expert cannot time the market consistently well. It is wise to choose and investment option you’re confident about and stick to it with longer term view.

10) Review Your Investment

Your investment strategy needs changes whenever circumstances permit it.

Your investment must be reviewed on an occasion such as getting married, having a child or starting a new business. It is also a good idea to check your basket of investment just to confirm that each of them is performing up to your expectation.

Also Read

Value Pick Stock of the Month – Apex Frozen Foods Limited

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Successful Equity Investing: 10 Tips for Beginner appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

The BSE Sensex on the week ended 01 June 2018 gained 303 points whiles the NSE Nifty gained 92 points as compared to previous week. Here is an Indian Stock Market Weekly Analysis (28 May 2018 to 01 June 2018) by Finblab.

28-5-2018 (Monday)

• Strong and positive trading session as far as Indian Stock Market is concern!
• Indian Stock Markets started off the week on a strong and positive note, rallying for the 3rd consecutive day – thanks to (1) sharp decline in Brent crude oil prices {as Russia and Saudi Arabia may increase supplies} and (2) recovery in Rupee against US Dollar.
• The BSE Sensex today rose 241 points to close at 35,165, while the NSE Nifty gaining 84 points to close at 10,689.
• Construction major Larsen and Toubro (LT) today presented its Q4 numbers during market hours! The Company beats the analysts’ expectation and reported a 4.6% rise year on year (YOY) in March quarter consolidated Net Profit at INR 3,167 Cr (3025 previous quarter); Revenues of the company grew by 11% to INR 40,678 Cr in Q4FY18 as compared to INR 36,828 Cr of last year.
• Overseas order inflow for the company for Q4 was stood at INR 8,678 Ct, while the total inflow of orders for the quarter came in at INR 49,557 Cr. Consolidated order book of the group at the end of FY18 stood at INR 2.6 lakh Cr.

29-5-18 (Tuesday)

• A day of profit-booking at the Indian Stock Market!
• Indian Stock Markets failed to continue its winning up-tick for the fourth consecutive day and lose more than 200 points (the BSE Sensex) due to profit booking by the institutional investors. Sharp fall in the rupee against USD also spoiled investor’s sentiment.
• The BSE Sensex today falling 216 points to close at 34,949, while the NSE Nifty shedding 55 points to close at 10,633.
• State-run power equipment maker Bharat Heavy Electricals Limited (BHEL) today announced it Q4 numbers after the market hours. The Company has reported more than double growth in March quarter Net Profit at INR 457.2 Cr (215.5 Cr during last quarter) on the back of strong operational income. Revenue from operations of the company during the Jan-Mar quarter grew by 3.7% to INR 10,144 Cr as compared to INR 9,779.5 Cr in the corresponding period last year.
• The Company said the outstanding order book stood at INR 1.18 lakh Cr at the end of March 2018 (highest in last 5 years). The company has booked orders worth INR 40,932 Cr in FY18 up by 74% compared to FY17.

30-5-18 (Wednesday)

• A volatile trading session at the Indian Stock Market!
• Indian Stock Markets today ended marginally lower after a volatile trading all through the day! The investors and traders’ trade cautiously ahead of the expiry of May futures & options contracts on Thursday.
• A couple of news that force the indices to trade volatile are (1) political confusion in Italy (globally investors seems to be worried over Eurozone break-up risk due to political uncertainty in Italy) and (2) Moody’s GDP growth forecast on Indian economy.
• In a highly volatile trading session, the BSE Sensex fell more than 200 points during the day but managed to recover losses in the last half an hour of trade and close at 34906 down by 43 points, while the NSE Nifty falling 19 points to close at 10,614.
• As mentioned earlier, Credit Rating Agency Moody’s today forecast India’s GDP growth. The rating agency has reduced its India 2018 growth forecast to 7.3% from 7.5% earlier but recalled 2019 GDP growth estimates at 7.5%

31-5-18 (Thursday)

• A superb rally at the Indian Stock Market on May expiry!
• Heavy short covering in the last half an hour of trade; (1) because Brent crude futures fell 0.50% to $77.10 a barrel (due to unexpected growth in US crude inventories and likely increase in crude output from OPEC and non-OPEC members), and (2) easing of political concerns in Italy help the benchmark indices close hire on Thursday, the expiry day of May F&O contracts.
• The BSE Sensex today rose 416 points to close at 35,322 and the NSE Nifty gained 122 points to close at 10,736.
• In the May series, the BSE Sensex gained 1.7% and the NSE Nifty rallied 1.1%

01-6-18 (Friday)

• A day of minor volatility at the Indian Stock Market!
• The Indian Stock Markets witness a minor volatility on the very first day of June series! The benchmark indices today spent most of its time negative territory before ending 100 odd points minus on the Sensex and 40 points on the Nifty.
• The BSE Sensex today fell 95 points to close at 35,227 while the NSE Nifty slipping 40 points to close at 10,696.

Indian Stock Market Weekly Analysis – A Week Gone By

Future Outlook –

Amid higher volatility and May F&O expiry, the benchmark indices able to clock handsome gains and close above 35,200 levels as far as Sensex is concern while the Nifty index closed just below 10,700 levels for the weekends on 1st June 2018.

Some of the events that have happened in the later part of the week could impact the Indian Stock Markets in the next week. These are –

• Lok Sabha by-poll Results: After being failed to form a government in Karnataka, the Bharatiya Janata Party (BJP) suffered a major setback on Thursday after it failed to retain the Bhandara-Gondiya (Maharashtra) and Kairana (UP) Lok Sabha seats. Market expert believes that the state elections which are lined-up may keep Indian Stock Market on the unstable ground till the 2019 general elections.
• PMI Growth In May: Activity in India’s manufacturing sector grew at a weaker pace in the month of May as compared to previous month. Slower expansion in output and domestic demand helped push the Nikkei Manufacturing Purchasing Managers’ Index, down to 51.2 in May from April’s 51.6.

On the technical front, as predicted in the previous article of Indian Stock Market Weekly Analysis the Nifty index is stuck in a range of 10,777 on the higher side and 10,550 on the downside.

With Q4 earning seasons is in its last legs, the market will now closely watch how the monsoon season progress as it already hit Kerala just a few days back. Looking at the current scenario, Finblab believes that the market may witness consolidation and the stock specific action is likely to be there going forward.

Again Nifty may trade 10,550 to 10,850 zone in near term.

Also Read –

1) Finblab’s Valuepick Stock for the month of May – GMM PFAUDLER LIMITED

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Finblab Research: Indian Stock Market Weekly Analysis (28 May ’18 to 01 Jun ’18) appeared first on Upcoming ipos: Latest news on stocks, economy & finance.