BSE Sensex Crash

Saturday, August 15, 2015


When on July 8, the world's stock markets have gone mad dragged by the collapse of the Chinese stock market, shares listed on the Indian market also plummeted downward trend in the rest of the international market. But the panic of Indian investors, according to some analysts, would be entirely unjustified as the Indian stock exchanges, say, at this time should not suffer because of the crisis jolts nor Greek nor that partially returned Chinese.



Panic in the markets and winds of a new 1929. The last three days on the world stock market were largely influenced by the general panic of Chinese investors. 90 million former investors who feared the explosion of yet another financial bubble inflated and then deflated , from Beijing .

The panic has spread like wildfire involving Indian investors, operating on the two stock exchanges opened in Indian territory the Bombay Stock Exchange and National Stock Exchange of India, both based in Mumbai. These are, respectively, the tenth and the twelfth on world exchange capitalization. Although it rarely equal in the articles summarizing the conditions of the world market (how many of you have read in the international media as the Indian stock exchange reacted to the collapse of China), We can say it is not just trinkets.

While Shanghai and Shenzhen flowed to peak, the index BSE Sensex, which comprises the thirty leading companies listed in Mumbai, recorded the minimum last month, undermined by the losses of Vedanta, the largest producer of copper in India, and Tata Motors that as indicated to the Economic Times, is dependent on a branch that sells cars on the Chinese market.

In the same piece of the Economic Times also read the interpretations of two analysts, Nilesh Shah of Kotatk AMC and Motilal Oswal, director of the eponymous consulting firm. Both agree that the investor panic is clearly unfounded because the Indian market, in this situation as they say would not be tied to the movement of capital involving the Chinese and European markets. That is, the Indian economy has so few exchanges and ties with China and with Europe, cutting a bit 'with the ax, what happens outside the country if they can fool enough .

The fortunes of the domestic market depend almost entirely on internal factors such as the performance of the monsoon in July and the fate of the many reforms promised by the Modi government in the economy.

Now, I do not have the tools to try to understand whether the statements collected by the Economic Times are functional to reassure the Indian market or if indeed the Indian stock exchanges after all live its own life, disconnected from the fate of the rest of the planet. But as I think this blog reads also someone who understands us a little bit of bag (or purports to) would be interesting to have the views a little 'more informed.

The National Stock Exchange of India abbreviated NSE is the stock exchange in India. It was founded in 1992 and is headquartered in Mumbai , the number and value of transactions you made ​​policed ​​is the first Indian stock exchange and the third in Asia , as far as concerns the market capitalization is second among Asian stocks .

The Stock Exchange is a financial market where they are traded regulated securities and currencies abroad. It is a secondary market, because they are treated financial instruments that have already been issued and that are therefore already in circulation; is also an official market (or regulated) are regulated specifically because all the trading operations, their methods, and operators and types of contracts allowed.

Even in ancient times there were some figures that can be considered precursors of traders contemporaries, such as trapezitsa of ancient Greece, or a stockbroker era and an operator of loans and men aureus, operator of loans and deposits, as well as the Agora, the Forum and the Curia Mercatorum can be considered the first examples of the stock markets, given that contained various activities definable financial.

After a long period of upheaval because of the barbarian invasions and Arab, around the fifteenth century they rose the first banking organizations and major exhibitions as a place of exchange and trade. The medieval fair, during three centuries, underwent a long series of innovations that transformed it into an organized market. The thread running through the medieval fairs and the stock exchange is made ​​from the periodic payment of accounts, the compensation, the settlement of balances and by check.

The term bag is derived from the meetings to determine the value of goods that took place in the fifteenth century in Bruges , at the house of the merchants Van der Burse, a Venetian family (whose last name was originally "Purse") moved to the Netherlands , and that boasted just a coat of arms consists of three bags. The first bags were built in Belgium , in Antwerp in 1531 and in France , in Lyon in 1548 . The path of the stock was to move from a private to a public management, highly regulated.

In the seventeenth century there was the spread of the corporation, opened the first Casa de Contratacción, in Seville , in London and Paris , and in 1561 the stock exchange of Amsterdam took place, as important as that of Antwerp, specializing both trading of goods both values. If the beginning of the eighteenth century the stock market activity was boosted by the expansion of trade, the issue of securities, investment, and public debts, a long series of setbacks occurred during the various wars due to strong speculation which he brought England to the formulation of the Bubble Act to end the confusion.

In the first half of nineteenth in France he witnessed a speculative boom that led to the birth of more than 500 companies limited by shares , which developed mainly in Paris and Lyon; in the same period in England, thanks to the abolition of the Bubble Act there was a strong expansion of the market, far more widespread patchy throughout the country, since most of the industrial actions were handled in the provincial centers, while London was concerned especially of railway shares and international companies.

In the United States, the first five decades of the century were marked by the different policies of successive Presidents, who facilitated or hindered the expansion of financial and equity markets. The task of the stock exchange is to receive orders for purchase by traders and back the transaction by following the law of supply and demand .

The work of operators (traders) is called trading (exchange) as just a financial instrument is exchanged for the money cash. The activity in question is highly regulated and there are, in almost all legal, penal and / or administrative. By 1998 in all countries joining the EU and the OECD, the markets may have regulatory and statutory rules of procedure decided by the management company; this market is defined as SSO (Alternative Trading System).

The SSO is also commonly said Stock Exchange (Private Bag), which are distinct from the central State in general is divided into the second adopts in its registry and in its corporate structure and / or among companies listed / quotable public bodies, public companies, joint ventures or institutional accreditation, ie companies that are holders of concessions or requirements that have agreed to participate in or to contracts public.

The first private and independent SSO is Italian TEMEX - Third Market Exchange. As a result many banks and SIM have adopted its own internal SSO, where you can buy or sell shares of companies listed therein, directly through banks and \ or from financial planners or brokerage houses. The only SSO private institutions (institutionalized) was the MAC - Alternative Capital Market, since 2006 taken over by the Italian Stock Exchange. The first SSO in Continental Europe was Small eXChange company (Ltd) Panamanian based in England.


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BSE Sensex Crash
Kalyan Panja
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When on July 8, the world's stock markets have gone mad dragged by the collapse of the Chi...

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