Bombay Stock Exchange (BSE)

Overview

The Bombay Stock Exchange (BSE) is Asia’s first securities market and India’s largest exchange. Founded in 1875 as the Native Share and Stock Brokers’ Association and based in Mumbai, the BSE lists over 5,300 companies and ranks among the world’s major stock exchanges.

Key takeaways

• Established in 1875; the oldest exchange in Asia.
• Lists equities, derivatives, debt instruments, currencies and mutual funds.
• Provides clearing, settlement and risk-management services.
• The Sensex (BSE 30) is the exchange’s flagship index, tracking 30 large and actively traded companies.

Brief history

Stockbrokers originally traded informally in Mumbai during the 1800s. In 1874–75 the group formalized as the Native Share and Stock Brokers’ Association, which later became the BSE. Over decades the BSE played a central role in developing India’s capital markets.

Markets and instruments

The BSE supports trading in:
* Stocks (equities)
* Stock futures and options
* Index futures and options (including weekly options)
* Debt instruments and currencies
* Mutual fund units

Trading and technology

The BSE transitioned from open-outcry trading to an electronic trading system in 1995. Electronic trading reduced errors, sped execution, and increased efficiency—aligning the exchange with modern global market infrastructure.

Sensex (BSE 30)

The Sensex, introduced in 1986, is the BSE’s primary benchmark. It tracks 30 of the exchange’s largest and most liquid stocks across major sectors and is commonly used to gauge overall market performance in India.

Dalal Street

The BSE is located on Dalal Street in downtown Mumbai. Dalal Street evolved from informal broker gatherings in the 19th century and is now India’s financial district—often compared to Wall Street in the United States.

Notable companies

By market capitalization, leading BSE-listed companies include Reliance Industries, Tata Consultancy Services (TCS), and HDFC Bank (rankings may change over time).

Global context

The BSE operates alongside other major global exchanges such as the New York Stock Exchange (NYSE), Nasdaq and the London Stock Exchange (LSE). In January 2024, India’s combined market capitalization on its exchanges surpassed Hong Kong’s, making India the world’s fourth-largest equity market at that time.

Bottom line

The BSE is a historic and foundational institution in India’s financial system. With a wide range of tradable instruments, an electronic trading platform, and the widely followed Sensex index, the BSE remains central to India’s capital markets and to global investors tracking the Indian economy.