Chapter 1: Introduction 简介
Bombay Stock Exchange Sensitivity Index or BSE is a weighted index comprising of 30 stocks and started on 1-Jan-1986. It is also known as BSE Sensex. It is regarded as the pulse in the domestic markets in India. The BSE Sensex consists of 30 largest and actively traded stocks, also representatives of various industries and sectors. These companies combined account for approximately 50% of market capitalization of the BSE.
The Bombay Stock Exchange Limited (earlier, The Stock Exchange, Mumbai; popularly known as the Bombay Stock Exchange, or BSE) was the oldest of stock exchanges in the whole Asia and it is having the 3rd largest number of companies listed in the world, with approximately 4700 listed companies as of Sep 07. The location of the Bombay Stock exchange is located at the Dalal Street, Mumbai, India. In Dec 07, the stock market capitalization of all the companies listed on BSE was around US$ 1.79 trillion, with made it the largest stock exchange of south Asia and the 12th largest stock exchange globally.
With around 4700 Indian companies listed on the Sensex & around 7800 scripts on the exchange, it foresees a significant amount of trading volume. The Bombay Stock Exchange SENSEX (Sensitive index), is also popularly known as "BSE 30". It is majorly used stock market index of India. Though some exchanges existed, Bombay Stock Exchange and the National Stock Exchange (NSE) accounted for most of the trading of shares in India.
The housing burst in the United States had led to the sequence of economic repercussions on the United States which subsequently got transmitted to many other economies, engulfing many developed and emerging Economies. The shock originated from the housing sector affected the financial sector severely as many of the insurance and investment companies dealing with the real assets and Debts suffered financial losses on account of falling housing prices and loan defaults. The Losses dragged them to go bankrupt and closure of the business. The attention of the policy Makers got diverted from averting overheating of the world economies in the beginning of the 2007 to averting slowdown in the economies.
The financial crisis which originated from subprime mortgage in USA soon affected the entire world and stock markets world over crashed. Though in the initial stages of the crisis India was not much affected but as soon as the FIIs started withdrawing their money from Indian markets panic started and Indian markets which was showing a tremendous signs of rise soon started to fall, soon after the start of the financial crisis BSE (Bombay Stock Exchange) which was on the high of 21,000 points fell to its lowest levels of 7000 points.(责任编辑：BUG)