From Bombay to NSE: A Historical Evolution of Indian Stock Markets from 1850 to 2024

This paper offers an in-depth historical exploration of the Indian stock market, tracing its transformation from informal trading networks in mid-19th century colonial Bombay to the establishment of technologically advanced institutions like the National Stock Exchange (NSE) by 2024. With the formation of the Bombay Stock Exchange (BSE) in 1875—Asia’s earliest organized stock exchange—as a pivotal milestone, the study examines how India's capital markets evolved amid changing political landscapes, economic policies, regulatory shifts, and rapid technological advancements. Key stages of this evolution include the contributions of native business communities, the impact of colonial financial structures, post-independence regulatory developments, the liberalization era of the 1990s, and the digital modernization of trading systems in the 21st century. Viewed through this historical framework, the paper highlights the vital role of stock markets in mirroring and influencing India’s economic growth. It also emphasizes the enduring strength and flexibility of Indian financial institutions in adapting to both domestic changes and global economic trends.