An Analysis of Growth, Pattern and Trends of Bombay Stock Exchange

The Indian economy today is passing through a process of crucial change. After more than 15 years of reforms dubbed as LPG (Liberalization Privatization Globalization), the GDP is growing at 9% and the disparities among the regions and income are also increasing, the dual economy rules and ruins. On the one side a highly modernized economy and on the other side the traditional economy still persists. The stock market is expected to be the engine of growth. Stock Market is a barometer of an economy. The finance of the company is judged by the performance and the activities of stock exchanges of a county. In a way the stock exchanges reflect the health of an economy. Stock exchanges are intricately inter-woven on the fabric of a nation’s economic life. The regional companies listed on BSE reached to 10825 companies by 2001-02. The annual registration of regional companies which was around 1800 since 1996-97 declined to 1774 by 2001-02. The share of BSE in the total regional companies listed allover the countries stock exchange was around 16%. The Sensex is on the bull run, on 25 July 1990, the Sensex reached 1000 points and by 20 April 2006 it reached 12000 points and by 29th October 2007 it reached 20000 points within 18 months. The number of shares traded in 1997-98 was 85877 lakh, where as the number of shares delivered was 24125 lakhs and the value of shares delivered was Rs.26339 crores which increased to 664467 lakh shares traded, whereas the number of shares delivered was 300653 lakhs and the value of shares delivered was Rs.271227 Crores. The Impact of BSE on economic growth can also be visualized by the growth in the listed companies paid up capital and market value of shares. The share of market value of listed equity as a percentage of GNP increased from 33.97% in 1996-97 to 85.31% by 2005-06.The BSE SENSEX growth is positive in the economy, but the news that the terrorists are using the Pnotes route to invest in stock market raises the alarm and proper steps should be taken to nip it in bud before it grows into dreaded terrorist cancer