Exploring the History of Nifty, Sensex, BSE, and NSE

Welcome to a captivating journey through the annals of India’s financial history! In this extensive guide, we will embark on an exploration of the fascinating history of Nifty and Sensex, BSE- Bombay Stock Exchange, and NSE- National Stock Exchange. These institutions have played an important part in shaping India’s economic landscape. Join us as we delve into their origins, evolution, and enduring significance.

The Birth of Sensex

Sensex: India’s Benchmark Index

The Sensex, short for the Sensitive Index, is often referred to as the barometer of the Indian stock market. Its history dates back to 1986, when it was first introduced by the Bombay Stock Exchange (BSE). The base year 1978-79 marked the starting point for calculating this iconic index.

The Journey of BSE

BSE: Where It All Began

The Bombay Stock Exchange (BSE), established in 1875, holds the distinction of being Asia’s first stock exchange. Its journey began under a banyan tree in Mumbai, and over the years, it has evolved into one of the largest and oldest stock exchanges in the world.

The Rise of NSE

NSE: A Modern-Day Marvel

The National Stock Exchange (NSE) was established in 1992 as a technologically advanced alternative to the traditional trading platforms. It introduced electronic trading, a departure from the open outcry system, and swiftly gained prominence.

Historical Milestones

Key Moments in the Evolution

  • Harshad Mehta Scandal (1992): The scandal exposed loopholes in the Indian financial system and prompted reforms in the stock market.
  • Liberalization and Economic Reforms (1991): Economic reforms opened up India’s markets to foreign investors, leading to increased participation.
  • Global Recognition (2001): Sensex crossed the 5000-point mark, gaining international attention.

History of BSE (Bombay Stock Exchange)

The Bombay Stock Exchange (BSE) holds a prestigious place as the oldest stock exchange in Asia, tracing its roots back to its establishment in 1875. Over the years, it has grown into one of the largest exchanges globally, boasting nearly 6,000 listed companies. BSE has played a pivotal role in nurturing India’s capital markets, providing a robust platform for the nation’s corporate sector to secure vital investment capital. Its contributions extend beyond stock trading, encompassing vital capital market services such as clearing, settlement, and risk management. In the year 2000, BSE achieved a significant milestone by introducing the first Exchange-traded Index Derivative Contract in India, featuring futures linked to the benchmark capital market index, the BSE Sensex.

History of NSE (National Stock Exchange)

In sharp contrast to BSE’s long history, the National Stock Exchange (NSE) is a relative newcomer, having been founded in 1992. Despite its youth, NSE has risen to prominence, making it one of the two most popular stock exchanges in India alongside BSE. The exchanges together handle a substantial portion of the country’s share transactions. NSE, with slightly over 1,500 listed companies, has quickly become a key player in the Indian financial landscape. In 1995, BSE transitioned to electronic trading, marking a significant shift in its operations. NSE’s strength is especially evident in the equity derivatives market, where it enjoys a monopoly, commanding over 90% of the market share and standing tall among the world’s top exchanges in terms of contract volumes. Notably, NSE has also introduced sectoral indices, such as Bank Nifty and CNX IT, which have gained prominence and actively trade in the market, further enhancing NSE’s standing in the financial sector.

Significance in Modern India

The Role of Sensex, BSE, and NSE Today:

  • Economic Indicators: These indices are crucial indicators of India’s economic health and investor sentiment.
  • Investment Opportunities: They provide avenues for domestic and foreign investors to participate in India’s growth story.
  • Regulatory Framework: The Securities and Exchange Board of India (SEBI) oversees these exchanges, ensuring fair practices and investor protection.


The history of Sensex, BSE, and NSE is intertwined with India’s economic journey. These institutions have witnessed the nation’s growth, faced challenges, and adapted to changing times. Today, they stand as pillars of India’s financial markets, offering opportunities to investors and serving as vital economic indicators. As you explore their history, you’ll better appreciate their role in shaping India’s financial landscape. Happy reading!


Who started Nifty?

Nifty was introduced by the National Stock Exchange (NSE) in 1996 as a benchmark index for the Indian equity market.

When was the Nifty founded?

The Nifty was founded on 22 April 1996, with a base date of 3 November 1995, which was the start date of equity trading on NSE.

Who is the father of NIFTY 50?

NIFTY 50 is owned and managed by NSE Indices, a subsidiary of the NSE Strategic Investment Corporation Limited.

What is the full form of Nifty?

The full form of Nifty is National Stock Exchange Fifty, representing the weighted average of 50 of the largest Indian companies listed on the NSE.

What is the origin of Sensex?

The term “Sensex” was coined by stock market analyst Deepak Mohoni in 1989. It was launched on 1 January 1986 as a benchmark index of 30 of the BSE’s largest and most actively traded stocks.

Who invented Sensex?

The Sensex was invented by the Bombay Stock Exchange (BSE) in collaboration with the S&P BSE index Committee, which selects the constituents of the index.

What was Sensex highest in history?

The Sensex reached its all-time high of 67,927.23 points on 15 September 2023.

What is Sensex full form?

The full form of Sensex is Stock Exchange Sensitive Index, representing 30 of India’s largest and most liquid public companies listed on the BSE.

What is the history of the BSE?

The BSE is the oldest stock exchange in Asia, established in 1875 by cotton merchant Premchand Roychand. It played a vital role in India’s capital market growth.

Who started the BSE?

The BSE was started by Premchand Roychand, known as the Cotton King of Bombay, who was one of the founding members of the Native Share and Stock Brokers’ Association.

When was BSE introduced?

The BSE was introduced on 9 July 1875 when brokers gathered to form an association for trading stocks. It received permanent recognition from the government in 1956.

What is the short history of NSE?

The National Stock Exchange (NSE) was established in 1992 as a demutualized electronic exchange. It offers various trading segments and has played a significant role in the Indian financial market.

Who founded the NSE?

The NSE was founded by leading Indian financial institutions, including IDBI, ICICI, LIC, SBI, and IFCI, with the aim of bringing transparency and efficiency to the Indian capital market.


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