Everything You Wanted to Know about India’s Two Biggest Stock Exchanges

India is one of the top emerging economies of the world. India’s robust economy withstood the effects of the 2008 financial crisis, thanks to its strong financial roots.

A major indicator of India’s economic prowess is its share markets a.k.a. stock markets. They have helped commuters and companies alike. Companies list themselves to raise funds and people invest to make money, the stock markets have changed many a life.

bse

Most of India’s trading is done at two stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Although both are located in Mumbai, India, they are often confused by many to be similar or the same. They are not. The BSE and NSE are quite different. Read on to know them.

Bombay Stock Exchange (BSE) National Stock Exchange (NSE)
Established in 1882, it’s Asia’s oldest stock exchange and 11th largest in the world in terms of market capitalization. Established in 1992, it’s India’s largest stock exchange in terms of number of trades and daily turnover.  It’s the world’s 12th largest stock exchange.
More than 5,500 companies are publicly listed on the BSE. More than 1500 companies are publicly listed on the NSE
BSE’s market capitalization (total market value) is $1.43 trillion. NSE’s market capitalization is $ 1.41 trillion.
BSE’s flagship index is known as Sensex which shows the 30 top trading companies. NSE’s flagship index is known as NIFTY and shows the 50 most traded companies.
The BSE On-Line Trading (BOLT) was first introduced in 1995 a few years after NSE introduced modernized trading system. NSE was the first share market to introduce modernized trading system in 1992.
BSE’s reach is limited to certain areas and isn’t known by all. NSE’s reach is national and is known by all across the country.
Companies such as Reliance Industries, TCS, and HDFC Bank trade on BSE. (These are top companies based on market capitalization) Companies such as ONGC, ITC, and SBI trade on NSE.

(These are top companies based on market capitalization)

The two bourses are a good indication of the progression of India’s financial sector. Many people have invested in these markets and have earned good profits. However, a lot of people invest and trade without proper knowledge and suffer heavy losses.

If you are interested in trading at these two share markets, you will need a good broker.  Brokers are members of these markets and are licenced to trade at these markets. They trade on your behalf and charge a fee for it. A good broker to start with would be Sharekhan, they have a lot of franchisees with excellent research data and superb brokers who help you make the right trade.

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