" Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised." Warren Buffet
An informal group of 22 stockbrokers had been trading under a banyan tree opposite the Town Hall of Bombay from mid-1850s. This banyan tree still stands in Horniman Circle Park, Mumbai. This informal group of stockbrokers organized themselves as The Native Share and Stockbrokers Association which, in 1875, was formally organized as the Bombay Stock Exchange (BSE). BSE is the oldest stock exchange in Asia, the second being the Tokyo Stock Exchange, established in 1878.
Premchand Roychand was a leading stockbroker of that time, and he assisted in setting out traditions, conventions, and procedures for the trading of stocks at Bombay Stock Exchange and they are still being followed.
James M. Maclean inaugurated the Brokers Hall in January 1899. After the First World War, BSE was shifted to an old building, near the Bombay Town Hall and in 1928, the plot on which the BSE building now stands, on Dalal Street, was acquired, and a building was constructed in 1930.
The Bombay Stock Exchange followed the familiar outcry system for stock trading, which was replaced, in the year 1995, with screen-based eTrading. BSE is presently housed in a 28-storied Jeejeebhoy Towers, where the older structure once stood: the present building derives its name from Sir Phiroze Jamshedjee Jeejeebhoy, the chairman of the Bombay Stock Exchange from 1966, until his death in 1980.
The BSE Sensex is a value-weighted index composed of 30 companies, with the base April 1979 = 100. The set of companies in the index is essentially fixed. These companies account for around one-fifth of the market capitalization of the BSE.