BSE vs NSE | Stock Market Decoded

BSE vs NSE – By Aryan Sharma

When we talk about the Indian stock market, the first thing that comes to your mind is two prominent exchange boards of India, that is, BSE and NSE.

Let’s start with the meaning of the stock trade. The most broadly comprehended and acknowledged meaning of a stock exchange is that it is a regulated and organised place where investors can buy and sell stocks, bonds, and other securities.

BSE and NSE are stock exchanges in India providing all top listed companies in India. These two are the greatest stock trades that rule securities exchange interest in India. All things considered, there are clear contrasts between the two, which can affect your choice to contribute through the BSE or the NSE.

BSE also known as Bombay Stock Exchange and NSE also known as National Stock Exchange are the leading stock exchanges of the Indian Market. Stock Exchange (BSE\ NSE) is an electronic platform where various financial instruments like Derivatives, Bonds, Stocks, ETFs, etc are listed.

Many of us are familiar with these exchanges, as we all very well know that they are similar to each other and at the same time different from each other. It is essentially the same. Both are different stock exchanges. The BSE was the one that was initially established followed by the NSE, which is more recent compared to the BSE. Let us discuss each.

BSE (Bombay stock exchange)

BSE Limited, also known as Bombay Stock Exchange. It is an Indian stock exchange and securities market located on Dalal Street in Mumbai, established in 1875.

BSE is the first and oldest stock exchange market in Asia, also the tenth oldest in the world.

BSE’s index is known by the name SENSEX (Sensitive Index) which shows 30 top trading companies. It was started as an Association of persons in 1875, which was accredited as a stock exchange in 1957.

In1986 the first equity index was introduced, which was Sensex. It was to provide a base for the Top 30 trading companies of the exchange, there are a lot more important indices of BSE, including BSE 100, BSE 200, BSE 500, BSE PSU, BSE SMLCAP, BSE MIDCAP, BSE

Pharma, BSE Auto, BSE  Metal, and BSE FMCG.

The BSE has sustained

India’s capital markets by providing a coherent platform for the Indian Corporate sector to raise investment capital, including the retail debt market, and has helped grow the Indian corporate sector. The BSE  also includes an equities trading platform for small-and-medium enterprises (SME). BSE has diversified into providing other capital market services including clearing, settlement, and risk management./

BSE  also provides an electronic trading system and furnishes fast and systematic trade execution. It permits investors to trade in equity, currencies, mutual funds, derivatives corporate bonds, mutual funds, initial public offering (IPO), offer sales and debt instruments. BSE offers equities, commodities, currency and equity derivatives.

According to the October 2021 study, BSE has an overall market capitalisation of over 118.80 crore rupees.

BSE has been ranked as the 10th most valued exchange globally.

BSE Bond is a market leader in the bond market with 2.09 lakh crores with fundraising from 530 issuances in the financial year 2017 – 2018 alone. SENSEX represent the Indian Economic Trends and Stock Market as a whole. It is internationally traded on Eurex and various leading exchanges of Brazil, Russia, China, and South Africa.

NSE (National Stock Exchange)

NSE is also known as National Stock Exchange. NSE is younger in comparison to BSE but is also one of the largest exchanges in the country.

It revolutionized the trading industry by introducing electronic or screen-based trading in India.

NSE was established in 1992 with Vikram Limaye as the CEO. It was recognized by SEBI in 1993 and started in 1994.

In the year 1995 – 1996 NSE launched the Nifty 50 index for trading. Nifty includes the top 50 companies, therefore, known as nifty fifty which trade on the NSE stock exchange market.

NSE allows investors to trade in Equity, Currency and Commodity Derivatives, Exchange-traded Funds, Mutual Funds, Security Lending and borrowing scheme, corporate bonds, initial public offering(IPO), institutional placement program (IPP) and offer sales.

We can conclude that BSE is the oldest stock exchange whereas NSE is the biggest stock exchange.

Both BSE and NSE are suitable for beginners, but which one is better can only be ascertained depending on the kind of investor the beginner is. If you are a beginner who wants to trade on Intraday Basis, NSE is a better option than BSE whereas, if you are a seasoned investor then, BSE would be more suited for you as you would not have to worry a lot about daily volume and very good liquidity.

 However, trade is not tied into any physical location and happens electronically. These two are the biggest stock exchanges that dominate stock market investment in India. That said, there are clear differences between the two, which can impact your decision to invest via the BSE or the NSE.

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