Bombay Stock Exchange

Brokers with access to the Bombay Stock Exchange offer trading on one of two major stock exchanges operating in India. A list of our top BSE brokers and a comparison guide is provided below. This BSE trading tutorial will also outline market opening hours and holiday lists, plus average online daily trading volume, before running through the best times to trade. Find out how to start day trading the Bombay Stock Exchange.

Best Bombay Stock Exchange Brokers

  1. IG-US offer spread betting, CFD and Forex trading across a range of markets. They are FCA regulated, boast a great trading app and have over 47 year track record of excellence.

    Forex trading involves risk. Losses can exceed deposits

Comparing BSE Brokers

Brokers with access to the Bombay Stock Exchange allow investors to trade on India’s top stocks and shares via a range of instruments. When choosing between BSE brokers, consider the following:

Platforms & Tools

When comparing the best BSE brokers, consider the tools and software most important to your strategy. This could include the integration of customizable charts or graphs using historical data, and a live calendar of Indian economic events.

The top BSE brokers will also integrate training and step-by-step guides on how to use platforms, including how to open and close positions and review data important to your BSE trading strategy.

Access to a mobile app may also be important, particularly if you are wanting to trade BSE stocks while on the go. Beginners may also want to check for a demo account so they can test tools and features before risking funds. IG, for example, allows retail clients to practice investing with $10,000 in virtual funds on both desktop and mobile. Additionally, day traders benefit from exclusive educational content via the IG Academy.

Fees & Costs

The fee structure is a key comparison point. Look for BSE brokers with a transparent and competitive commission arrangement. How much will it cost to trade BSE stocks? And are there any swap charges or other non-trading fees to take into account, such as inactivity penalties?

A low minimum deposit requirement may also be important, particularly for beginners or those with limited access to capital. Other things to review when choosing between BSE brokers include a margin trading facility and free currency conversions if opening trades in money other than your account denomination.

Capital.com, for example, offers no fees for any deposits, withdrawals, educational content, real-time quotes or dynamic charts and indicators.

Regulation & Security

The best brokers with access to the Bombay Stock Exchange will be regulated by a trusted financial agency, such as the Securities and Exchange Board of India (SEBI). Also check whether you have access to compensation schemes and scam support in case of broker insolvency or other issues.

Secure login protocols, such as two-factor authentication (2FA) or face recognition biometrics, can also be important when comparing BSE brokers. The top-ranked brokers will provide this alongside SSL secure data transmissions and one-time-password (OTP) protection when making any account changes or attempting to withdraw funds.

Note, the latest news indicates that the Securities and Exchange Board of India may soon allow individuals to directly carry out BSE investments rather than having to trade via registered brokers. This initiative could change the way India’s investment market functions and provide challenges for existing BSE brokers and international firms.

What Is The Bombay Stock Exchange?

The Bombay Stock Exchange (BSE) was the first exchange introduced in Asia, established in 1875 and is currently owned by BSE Ltd.

Based in Mumbai, India, it is now the oldest but second-largest stock exchange in India after the government-owned National Stock Exchange Of India (NSE), with a market capitalization of approximately $2.2 trillion.

History

The history of the exchange has a humble beginning. At its origin in the 1850s, five brokers would discuss business under a banyan tree in front of the Mumbai town hall. Dalal Street was selected in 1874 as the setting for the creation of the Native Share and Stock Broker’s Association. This would eventually become the BSE.

In 1956 the exchange was recognized under the Indian Securities Contacts law (SEBI) as the country’s first exchange. Today, this famous street is home to several financial corporations, banks and investment firms that are regularly reported on and used to understand the Indian financial industry’s health.

In 1986, a tool was developed to measure the overall performance of the BSE institute. The operations measurement is known as SENSEX, a stock market index hosting trading volume and an outlook view of 30 well-established companies listed on the exchange.

In 1995, the Bombay Stock Exchange converted from an open trading floor to an electronic system. This is known as BOLT (BSE Online Trading). Today, the BSE and BOLT are recognized for their fast execution times and competent system with few errors, ranking alongside other globally established exchanges such as the New York Stock Exchange (NYSE). This was a major milestone in BSE history.

What Is The Bombay Stock Exchange Used For?

The Bombay Stock Exchange has helped to develop India’s capital markets, supporting the growth of the Indian corporate sector. The three main functions of the BSE are economic contribution, marketability & liquidity and price determination. BSE has also expanded to provide other capital market services, such as clearing, risk management and settlement procedures.

As many significant national corporations are featured on the exchange, it can also act as a gauge of economic health or a reflection of the impact of major events. The top BSE brokers offer insights and metrics on individual stocks and the index as a whole.

The exchange is known for being used as an investment platform by individuals across the globe looking to make a profit from Indian stock price fluctuations. Traders can invest in a listed corporation’s stocks, ‘short selling’ or ‘going long’ depending on market sentiment trends. The BSE securities list is comprehensive and enables members to trade in equities, optionsfutures, currencies, and mutual funds, among others.

BSE Vs NSE Trading

The National Stock Exchange (NSE) is a newer exchange in India, founded in 1992. It is now the largest exchange in India but has fewer listed companies, at around 2000 vs the BSE with over 5000.

The NSE benchmark index is known as NIFTY 50, tracking the 50 largest and most liquid stocks by market capitalization. The BSE index is named SENSEX (stock exchange sensitive index). A stock market index essentially summarizes the movements of the overall market in real time. Look out for both of these on your BSE brokers list of available assets.

How The BSE Works

Listing Rules

There are several BSE listing requirements that companies must adhere to before being considered to list as members on the exchange and be available to trade at BSE brokers.

The application is comprehensive and approval is granted by the provisions of the Securities Contracts (Regulation) Act and guidelines issued by SEBI. Circular trading window information is distributed to all listed companies by the SEBI. The main BSE rules and requirements include:

  • Initial listing fee required of INR 20,000
  • The minimum issue size is 10 Crore (INR 100 million)
  • The minimum market capitalization of the company is 25 Crore (INR 250 million)

SENSEX

Stock market indices such as the BSE SENSEX operate to depict the condition of the market and support investors in discovering patterns. SENSEX comprises the 30 largest and most actively traded stocks on the BSE markets. The components of the index are selected by the S&P committee based on the following criteria:

  • Should be a large-cap company
  • The stock should be relatively liquid
  • The company must be listed in India on the BSE
  • The company should generate revenue from core activities
  • It should keep the sector balanced broadly in line with the Indian equity market

The largest plunge experienced by the index was in 1992, dropping almost 13%, following reports of a scam. It was revealed that a broker had siphoned money from the banking sector to propel money into stocks.

However, India’s surging economy has witnessed significant BSE highlights. With this, the SENSEX index on the Bombay Stock Exchange has seen significant volume growth, averaging around +14% per year between 1986 and 2021.

From launch, the index was based on a market capitalization weighted mechanism, before moving to a free-float method in 2003. This uses the number of available shares to trade, removing suspended stocks such as those held by company insiders.

BSE SME

The BSE SME exchange was set up to provide small and medium enterprises with a platform for raising equity capital for expansion and growth. This was backed by a government task force, with SEBI creating governance regulations. Existing members of the exchange may trade on the shares of the SME. Company listing requirements include:

  • Must be a limited company
  • Net assets must be worth at least 1 Crore (INR 10 million)
  • Net worth must be at least 1 Crore as per the latest financial statements
  • The company must have a minimum of 50 investors while listing through IPO
  • The company must hold a record of profits for two out of the three latest financial years

Indian Numbering System

BSE investments are conducted in Indian Rupees (INR). It should also be noted that the exchange uses an Indian numbering system which you may see quoted on your BSE broker’s trading platform. References include INR 100,000 referred to as 1 Lakh and INR 10 million denoted as 1 Crore.

With these definitions of major intervals taking the place of millions and billions, numbering physically looks different too. When counting with Lakhs and Crores, large numbers follow a 2,2,2,3 system, rather than the western 3,3,3. That is to say, the number 100 million is written as 100,000,000 in the West but 10,00,00,000 in India. There are also more names for larger numbers but the numbers continue to be separated in pairs rather than threes. It is useful to understand this system before investing on the exchange.

How To Start Day Trading On The Bombay Stock Exchange

Once you have compared BSE brokers and are ready to start investing, there are a few considerations:

Strategy

Beginning your investment journey can feel quite complex. However, it is worth following a strategy to turn a profit. The best approach is to analyze previous market data, facts, charts and patterns as a tool for price predictions. Many strategies will also integrate risk management tools like stop orders and preset position sizes to reduce losses.

Tip: the top brokers with access to the Bombay Stock Exchange will let you test systems using a demo account.

Choose A Stock

Another difficult decision is ascertaining the best stocks to invest in on the Bombay Stock Exchange. With the ever-growing company search list, which will provide the best profit potential? The level of unpredictability surrounding stocks can influence price fluctuations within a session. Stocks with low volatility tend to offer less profit potential.

Spend some time analyzing price shifts and average trading volumes across the past few weeks for example. Volume gives weight to market moves. The greater the volume, the greater the movement. Expanding your search out of the top 20+ stocks in the trading ring that BSE brokers may offer could also make a difference to your profit potential. Live index trackers and screeners can also be valuable when looking into the Bombay Stock Exchange.

BSE Trading Hours

The Bombay Stock Exchange is open Monday to Friday for a total of 6 hours and 15 minutes, exclusive of extended hours. See below for the typical opening hours schedule:

  • Opening Session – 09:00 – 09:15 IST
  • Main Session – 09:15 – 15:30 IST
  • Extended Hours – 15:40 – 16:00 IST

BSE stock exchange trading hours operate in the Indian time zone, GMT + 05:30. Note that the exchange is not open on Saturday or Sunday, though it does not close for lunch during the week.

Keep an eye on public holiday dates as the stock exchange will likely close. Many BSE brokers will integrate a holiday calendar into personal account portals, including those upcoming throughout 2022.

The Bombay Stock Exchange holds Muhurat hours during Diwali. For example, the BSE market opening time in 2020 was between 18:15 to 19:15 IST. Watch your BSE brokers’ holiday schedule for announcements of new timings, changes to start or closing times, or upcoming holidays for 2022.

Biggest Players

There are over 5,600 companies listed on the Bombay Stock exchange, representing several diversified categories from energy to banking to information technology. Some of the largest listed companies by market cap include:

  • Icici Bank
  • Infosys Ltd
  • HDFC Bank Ltd
  • Reliance Industries Ltd
  • Hindustan Unilever Ltd
  • TATA Consultancy Services Ltd

BSE Trading Tips

There are several ways to increase the potential of your BSE trading strategy. Our top tips include:

Educational Resources

Access to comprehensive teaching resources is important whether you are a new or experienced trader. Useful resources include a full BSE NSE calendar with public holidays, company annual report publications, reviews of the most volatile/liquid days in a week, specific asset types and investing methods that can be accessed in the index chart.

It can also be useful to research forex, retail bonds, futures and more. The best BSE brokers will integrate many of these services into their offerings. Look out for content organized by experience level.

For advanced education, there are many full-scale online courses or training days. These webinars and live events are often led by experts in the field and can give you useful advice, tutorial demonstrations, an understanding of the best trading hours and live BSE investment examples.

Algorithms

You may also want to consider automated (algo) BSE trading once you have an appropriate strategy. These algorithms can be added to BSE brokers’ platforms to execute trades that follow pre-determined strategies with specific entry and exit signals, position sizes and risk management systems in place.

The benefits of using automated services include reducing the time and effort required to manually enter and exit the market. Trades can be automatically closed or stopped when pre-set thresholds are met. This can be added via an online robot system or API integration.

Demo Accounts

Many of the top BSE brokers will offer a demo terminal on their website or through their desktop clients. These are great for beginners and veterans alike. The simulated environment is perfect for exploring new strategies, markets and platforms without the risk of any monetary loss, as the accounts are funded with virtual money.

DSIJ and BSE 2 NSE also offer a free BSE online virtual game, a system developed to improve understanding of the Indian equity market. Practice bonds, commodities like gold and derivatives investing on the platform site today with no pre-data experience or research needed.

News

Keeping up to date with the latest BSE news events is important. This will support you in anticipating market movers during your BSE session. It is also worth keeping abreast of events happening within the companies list. Big events or news can create volatile swings in individual stock prices and market indices.

Historical price data and information will also be published across a variety of sources including on BSE brokers’ platforms. Data may include insider trading from events and average trading turnover. These will help you to understand previous market gainers and fallers, so you can better predict those in the future.

Final Word On BSE Brokers

BSE brokers offer access to several investment opportunities, suited to even new day traders. The SENSEX index offers decent potential to profit from the price fluctuations seen by some of the major corporations in India. To get started, use a range of resources, consider looking for educational content and review our list of recommended BSE brokers.

FAQ

In Which Year Did The Bombay Stock Exchange (BSE) Start Trading In Securities?

BSE trading in securities began in 1956 when it was recognized under the Indian Securities Contacts law as the country’s first exchange. The first company to be listed on the exchange was D.S. Prabhudas & Company, now known as DSP.

What Is The Bombay Stock Exchange Market Opening Time Via Online Brokers?

The online trading time for the Bombay Stock Exchange is between 09:00 and 16:00 IST Monday to Friday, GMT + 05:30. Remember that there may be window closures for public holidays. The top BSE brokers will offer market access during all trading sessions.

Do BSE And NSE Brokers Have The Same Trading Holidays?

Yes, as both exchanges operate from India they follow the same calendar. Notable dates on the NSE and BSE trading holidays calendars include Muharat. Look out for a published calendar on your BSE brokers’ website.

What Are BSE Insider Trading Regulations?

BSE insider trading is the disclosure of individuals breaking protocol set by the SEBI, including employees buying and selling stock in their own companies or utilizing information not yet known to the public to profit from their company’s shares. Insider data is published under the Prohibition of Insider Trading Regulations, 2015. Disclosures include employees from Yes Bank Ltd.

What Does It Mean If BSE Stocks Are Trading Below Book Value?

If stock is trading below book value, the company’s assets aren’t earning enough to satisfy the majority of investors. The BSE book value is a good baseline for stock prices and can give a live overview of share trading for investors.

by