NSE vs. BSE: Unraveling the Differences

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What is NSE?

By market capitalization, the National Stock Exchange (NSE), which was established in 1992, is the biggest stock exchange in India. Here are some important NSE facts:

  • Electronic Trading: With the introduction of electronic trading, the NSE transformed the stock market. It simplified and expedited the process of buying and selling stocks.
  • Headquarters: Mumbai is home to the NSE's headquarters.
  • Benchmark Index: The NSE uses the Nifty 50 index as its benchmark. It includes the top 50 equities from a range of industries.
  • Product Offerings: Trading in stocks, bonds, mutual funds, exchange-traded funds (ETFs), commodities, derivatives, futures, options, and currencies is made easier by NSE.


What is BSE?

As the first stock market in Asia, the Bombay Stock market (BSE) was established back in 1875. What you should know about BSE is as follows:

  • Historical Legacies: The Securities Contract (Regulation) Act of 1956 granted BSE permanent recognition and a long history.
  • S&P BSE Sensex: The benchmark S&P BSE Sensex, which monitors the performance of the top 30 listed businesses on the exchange, was first introduced by BSE in 1986.
  • Market Size: With almost 7400 listed businesses, BSE is still a major participant, even if NSE has a higher market capitalization.
  • Diverse Offerings: The BSE permits trading in currencies, commodities, stocks, and derivatives.

Similarities Between BSE and NSE:


  • Popularity of Investors: Both the BSE and NSE see considerable participation from investors.
  • Trading Possibilities: Stock trading is made easier by both exchanges.
  • Comprehensive Products: They offer bonds, mutual funds, exchange-traded funds (ETFs), and more in addition to stocks

Important Variations
  • Founding Year: BSE was founded more than a century before NSE.
  • Open Outcry vs. Electronic: The open outcry mechanism used by BSE is not the same as the electronic trading system used by NSE.
  • Benchmark Indices: The Sensex is used by BSE, and the Nifty 50 is used by NSE.
  • In terms of market capitalization, NSE is in the lead.
  • Geographic Presence: NSE is a national operator, however BSE is mostly present in Mumbai.
Key Differences
  • Founding Year: BSE was founded more than a century before NSE.
  • Open Outcry vs. Electronic: The open outcry mechanism used by BSE is not the same as the electronic trading system used by NSE.
  • Benchmark Indices: The Sensex is used by BSE, and the Nifty 50 is used by NSE.
  • In terms of market capitalization, NSE is in the lead.
  • Geographic Presence: NSE is a national operator, however BSE is mostly present in Mumbai.

FAQs About NSE and BSE 

  • Which Is Better, NSE or BSE?: It depends on your preferences and investment goals.
  • Cross-trading is available. Can I buy on the BSE and sell on the NSE?
  • Technology, greater reach, and the Nifty 50 are the reasons why NSE is preferred over BSE.
  • The Market Dynamics and Liquidity Explain Why Share Prices Vary Between BSE and NSE.
  • The trading hours of the BSE and NSE are 9:15 AM to 3:30 PM (Indian Standard Time).
  • Is It Possible for a Company to Have Both a BSE and NSE Listing?: A lot of companies have dual listings.




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