Exchange-traded funds (ETFs), bonds, derivatives, and other financial assets can all be traded on the stock exchange, an electronic marketplace. With the aid of brokers, it creates a market place for investors and traders to exchange and list securities.
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) handle the majority of the trading volume of listed securities in the Indian equity share market.
After the stock exchanges of Hong Kong, China, and Japan, the major market exchanges in India, the BSE and NSE, are among the biggest stock exchanges in Asia.
Market capitalization, the number of listed businesses, traded products, liquidity of listed securities, and benchmark index are the main areas of distinction between NSE and BSE.
What is NSE?
By market capitalization, the National Stock trading (NSE) is India’s largest stock trading market. It was the first stock exchange in India to create a fully automated, electronic, or screen-based trading system. It was founded in 1992 and granted stock exchange status in 1993.
The distribution of actual share certificates became obsolete when the extensive paper-based trading system was eventually superseded by the electronic trading system.
NIFTY, also known as National Fifty, is the stock exchange’s benchmark indicator. NIFTY, which was introduced in 1995–1996 and is based on the market capitalization of fifty of the most actively traded businesses listed on the National Stock Exchange, provides its value.
The Nifty 50 monitors the sixteen hundred stocks listed on the NSE’s fifty largest and most liquid companies. There are fifty biggest stocks.
What is BSE?
The Bombay Stock Exchange was first known as “The Native Share and Stock Brokers Association” when it was founded in 1875. It is the older sibling of the NSE and Asia’s first stock market. BSE didn’t switch from the open-cry system to completely electronic trading until 1995.
Like the NSE, the BSE has a benchmark indicator called the SENSEX. (Sensitive Index). A weighted average value of the top thirty companies listed on the stock exchange, it was first presented in 1986. Along with Eurex, the SENSEX is traded globally on numerous prestigious exchanges in China, Russia, Brazil, and South Africa.
There are numerous divisions of the Bombay Stock Exchange. With over 250 companies, the BSE SME platform is the biggest in India.
