What Is the Meaning of Market Cap BSE?

"Market Cap BSE" is a reading of the aggregate value of all the public stocks traded on the Bombay Stock Exchange. Market Cap BSE is one of several market caps used to illustrate economic conditions in different parts of the world.
  1. BSE

    • "BSE" stands for Bombay Stock Exchange, the primary stock exchange of India. Formerly known as "The Stock Exchange, Bombay," the BSE is located in Mumbai, India, and ranks as the largest stock exchange in Asia and the ninth largest in the world in terms of domestic equity capitalization.

    Market Cap

    • "Market cap" is short for "market capitalization." According to InvestorWords.com, market capitalization "represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares outstanding by their current price per share." In simpler terms, market cap represents the public perception of a company's worth.

    Significance

    • Many consider market capitalization to be an indicator of a company's net worth. Taken as a whole over the total available stocks sold in an exchange (in this case, the BSE), market cap can be used as a rough indication of the economic condition of that region. By itself, however, market cap is not a reliable indicator of economic conditions. Given that market cap is a market estimate of a company's value, market cap is subject to speculative bubbles, inflating estimates of the actual economic situation of the region. To obtain better readings of a region's economy, market cap is used in conjunction with other economic indicators.

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