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What Is Dalal Street?
Dalal Street is located in downtown Mumbai, India, and houses the Bombay Stock Exchange, now known as BSE, the largest stock exchange in India, and other reputable financial institutions. The Bombay Stock Exchange moved to Dalal Street in 1875 and became the first stock exchange recognized by the Indian government.
The translation of Dalal in Marathi means broker or intermediary. Dalal Street is a metonym for the entire Indian financial sector, much like Wall Street is in the United States.
Key Takeaways
- Dalal Street is a street in downtown Mumbai, India, and houses the Bombay Stock Exchange and other financial institutions.
- Like Wall Street in the United States, Dalal Street has become a metonym for the Indian financial sector.
- The Bombay Stock Exchange has facilitated the financial growth of Dalal Street by creating an efficient marketplace in which to raise capital.
India’s Financial Sector
On Jan. 22, 2024, India’s stock market capitalization surpassed Hong Kong’s for the first time, making India the fourth-largest equity market globally. According to data compiled by Bloomberg, the combined value of shares reached $4.33 trillion on the exchanges in India, beating the $4.29 trillion in Hong Kong.
The BSE, formerly the Bombay Stock Exchange, is an exchange located on Dalal Street. It is one of the first exchanges in Asia to address latency in the era of electronic trading. Since its inception, the BSE has facilitated the growth of the corporate sector by creating an efficient marketplace to raise capital. Other products and services available to market participants include risk management, clearing and settlement procedures, market data services, and investor education.
The S&P BSE Sensex is a widely recognized benchmark in India. It tracks the performance of the 30 largest stocks in 12 different sectors on the exchange. It is the equivalent of the Dow Jones Industrial Average (DJIA) in the United States. Investors can gain exposure to the Sensex through the EUREX as well as leading exchanges in Brazil, Russia, China, and South Africa. Other assets listed on the BSE include stocks, futures, and options.
Dalal Street is a term used by Indian investors just as Wall Street is referenced in the United States.
Global Financial Hubs
Dalal Street is a central location for most financial activities in India and is one of many global hubs. The equivalent of this in the United States is Wall Street, hosting the New York Stock Exchange (NYSE), the Federal Reserve, and other financial institutions. For London, Canary Wharf sits at the center of banking and finance. The financial district is home to the London Stock Exchange and the headquarters of international banks like Barclays and HSBC.
Most financial activity in Japan funnels through the Nihonbashi district, the location of the Bank of Japan, the Tokyo Stock Exchange, major financial institutions, and popular shopping centers. Other areas with financial districts like Dalal Street include Hong Kong, Singapore, Sydney, and Zurich.
How Does the Market Capitalization of the Indian Stock Market Compare to the United States??
As of Jan. 2024, the total market capitalization of the U.S. stock market exceeded $50 trillion compared to over $4 trillion for markets in India.
How Many Companies Trade on the BSE?
As of Jan. 2024, 5,309 companies trade on the BSE.
What Is Market Capitalization and How Is It Calculated?
For each company listed on an exchange, market capitalization equals the current share price multiplied by the number of shares outstanding.
The Bottom Line
Dalal Street is a central location in India for most financial activities and houses the BSE, first established in 1875. The term “Dalal Street” is used just like “Wall Street” in the United States to describe a hub of financial activity.