The bull-run in the Indian stock market came to a halt on May 18, as the Bombay Stock Exchange recorded its worst fall.
The benchmark index of the Bombay Stock Exchange closed at 11,391 down 826 points, which is the highest ever fall for the Sensex. The NSE Nifty closed with a loss of 246 points at 3388. Taking cues from both global and domestic developments, the markets entered their first correction mode in two years.
These were the figures on May the 18th when the stock market came down crashing. This was one of the biggest crashes that Stock Market had suffered over a long period of time. But this was speculated by most of the stock experts and largely by the investors at large. Foreign funds have invested huge amount in India’s stock market and are currently driving the stock market rally. Fears of further rises in US interest rates, increasing inflation and growing risk aversion among international investors are driving the Asian markets down and the Indian market has followed the trend. But currently the stock markets are running on a rampage bull kissing the magical figure of 20K a dream come true for most share traders
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Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition ab-initio.Apart from the BSE SENSEX, which is the most accepted stock index in India, BSE uses other stock indicators as well. These are BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Teck, BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods, BSE Metal, BSE Metal and BSE Broadcast. The BSE Broadcast is a large timepiece on the wall of the BSE, which constantly exhibits the most recent stock quotes from the market. It is also displayed on one of the foremost business-news channels in India — NDTV Profit. The Singapore Exchange (SGX) has already made a strategic investment in Bombay Stock Exchange (5%) for US$42.7m.