BSE and NSE are the leading stock exchanges in India. BSE and NSE are both medium of exchanges to trade. They don’t make any difference when you are buying and selling stocks. Most of the stocks trade in both places and both exchanges have their own safety mechanism. The difference between these two i.e BSE or NSE is important to understand for those who are planning for investment in Indian stock market.
Please bear with me for a few more minutes to know more about BSE or NSE which is better.
Here we will discuss below topics:
What is BSE?
BSE stands for Bombay Stock Exchange. BSE has more than 5,400 listed stocks and a market capitalization of more than $1.6 trillion.
SENSEX introduced as primary equity index in the year 1986. It provides an opportunity of investment for distinctive thirty trading companies in exchange, in more than 10 sectors. In the year 1995, BSE Online Trading System (BOLT) was started. The Association of person is regenerate into a Separate Legal Entity with the name of Bombay Stock Exchange Limited, in 2005.
Bombay Stock Exchange Website : (Bombay Stock Exchange)
What is NSE?
NSE stands for National Stock Exchange. The NSE has nearly 1,700 listings and a market capitalization of $1.4 trillion.
NSE was the first exchange of India to provide a latest, fully automated screen-based electronic trading system. It provides easy trading facility to investors across the whole world.
Nifty introduced by the National stock market in 1995, to act as a basis for measuring the performance of the exchange. It lists out top 50 companies which traded on the exchange.
National Stock Exchange Website: National Stock Exchange of India Ltd.
|BASIS FOR COMPARISON||BSE||NSE|
|Total listed companies (April 2018)||5439||1952|
|Market Capitalization(April 2018)||US$2.3 trillion||US$2.27|
|Network||Over 417 cities||Over 2000 cities|
|Other Indices||BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Teck, BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods (FMCG), BSE Consumer Durables (SYMBOL: Cons Dura), BSE Metal etc.||NIFTY 50, NIFTY NEXT 50, NIFTY 100, NIFTY MIDCAP 50, NIFTY SMLCAP 100, NIFTY BANK, NIFTY AUTO, NIFTY FIN SERVICE, NIFTY FMCG, NIFTY IT, NIFTY METAL, NIFTY PHARMA, NIFTY REALTY, NIFTY PSU BANK, NIFTY PVT BANK, NIFTY COMMODITIES etc.|
BSE or NSE which is better?
While selecting where to invest, it depends on the companies where an investor is looking to invest. There are some companies may be listed on the BSE and not on NSE. So, there is no option for such companies. However, if the companies are listed on both the exchanges, it totally depends on the choice of the investor. But we must check the liquidity. Many traders opt for trading and investing in shares on the NSE. The reason is high liquidity. The intraday traders opt for NSE as they find it easy to buy or sell any stock as the volume is high.
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