If you are new to stock trading, at one point or the other, you might have questioned yourself about the difference between NSE and BSE, and which one is better for beginners.
Today, let us explore the detailed comparison between BSE and BSE.
Stock Exchanges in India
In India, the two most well-known stock exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). However, there are several other exchanges as well, including:
- Metropolitan Stock Exchange
- Multi Commodity Exchange of India
- National Commodity and Derivatives Exchange Ltd.
- Commodity Exchange Ltd.
Today, we will discuss the NSE and BSE differences.
What is NSE and BSE
The NSE was established in 1992. It is known for its electronic trading system. NSE features the Nifty 50 index, representing 50 major companies across various sectors.
The BSE, on the other hand, was founded in 1875. It is Asia’s oldest stock exchange. BSE is recognised for the Sensex index, which tracks 30 prominent companies.
Both exchanges provide platforms for buying and selling stocks. But, they differ in ways, like the number of listed companies on the BSE and NSE and trading volumes. While many companies are listed on both exchanges, some may be exclusive to one.
BSE Full Form & Overview
BSE (Bombay Stock Exchange) is the oldest stock exchange in Asia. It has a long history and plays a crucial role in the Indian financial market. The BSE is known for listing a large number of companies and is home to the famous Sensex (Sensitive Index), which tracks the top 30 companies listed on the exchange.
Established in 1875, the Bombay Stock Exchange (BSE) is Asia’s first and one of the world’s fastest stock exchanges, with a trading speed of just 6 microseconds. For over 140 years, BSE has helped businesses grow by providing a platform to raise funds efficiently.
Originally known as ‘The Native Share & Stock Brokers’ Association,’ BSE became India’s first listed stock exchange in 2017.
Today, BSE offers a transparent marketplace for trading stocks, currencies, bonds, derivatives, and mutual funds. It also operates India’s largest SME platform, supporting small businesses, and runs BSE StAR MF, the country’s biggest online mutual fund platform, handling millions of transactions every month.
There are a total of 5,591 companies listed on BSE with a combined market value of ₹40,92,643.6 crore. The top 10 companies alone contribute ₹9,26,448.08 crore to this total. However, this count does not include DVRs, REITs, InVITs, ETFs, and partly paid shares.- As of 11 Feb 25
NSE Full Form & Overview
NSE (National Stock Exchange) is India’s largest stock exchange in terms of trading volume. It introduced electronic trading in India, making transactions faster and more efficient. The Nifty 50 index, which consists of the top 50 companies, represents NSE’s market performance.
Founded in 1994, NSE was the first stock exchange in India to introduce electronic trading, making buying and selling stocks faster and more transparent. It is now one of the largest exchanges in the world, helping investors trade safely and efficiently.
NSE uses advanced technology to ensure secure and smooth trading across different asset classes. It focuses on protecting investors and continuously improving the Indian stock market.
Comparison Between BSE and NSE
Here’s a table explaining the difference between NSE and BSE:
| Feature | NSE (National Stock Exchange) | BSE (Bombay Stock Exchange) |
| Founded In | 1992 | 1875 |
| Full Name | National Stock Exchange | Bombay Stock Exchange |
| Index | Nifty 50 | Sensex |
| Number of Listed Companies | Around 2,000+ | Around 5,500+ |
| Market Size | Larger in terms of trading volume | Larger in terms of the number of listed companies |
| Website | www.nseindia.com | www.bseindia.com |
- If you want to trade frequently, NSE is often preferred due to better liquidity and faster execution.
- If you are looking for a wide variety of stocks, BSE has more companies listed
NSE vs. BSE: Understanding the Key Differences
NSE and BSE serve the same purpose in India’s stock market. However, the NSE and BSE difference lies in their market approach, number of listed companies, trading volume, and much more.
- History: BSE is the Oldest, NSE is the Fastest Growing
The BSE was established in 1875, making it the oldest stock exchange in Asia. On the other hand, the NSE was founded much later, in 1992.
- BSE vs NSE: Nifty and Sensex Show Market Trends
Each exchange has its own benchmark index:
- NSE’s Nifty 50 tracks 50 top stocks listed on the NSE.
- BSE’s Sensex tracks 30 major stocks listed on the BSE.
- Technology: NSE is Fully Digital, BSE Uses Both Old and New Methods
One key difference between NSE and BSE is that the two are how trading happens. NSE operates on a fully automated electronic system, making transactions faster and smoother. On the other hand, BSE uses both electronic trading and traditional methods.
This difference impacts trading speed and efficiency.
- Listed Companies: BSE Has Legacy Firms, NSE Attracts New-Age Companies
BSE has many well-established companies with a long history in India’s economy. The top 30 companies listed on BSE are often older.
Meanwhile, NSE is popular among newer, technology-driven companies, making it more attractive to modern investors.
BSE or NSE Which is Better for Beginners
Coexistence: BSE and NSE Work Together, Not Against Each Other
Many investors think NSE and BSE compete, but in reality, they work together to provide better choices.
Investors often trade the same stocks on both exchanges, ensuring liquidity (easy buying and selling) and market stability.
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Final Thoughts
Understanding the difference between NSE and BSE is important for anyone who is part of or planning to kickstart their journey in the stock market in any manner. While both serve as platforms for trading stocks, derivatives, and other financial instruments, they have significant differences in their trading systems, history, market capitalisations, and other factors.
Difference Between NSE & BSE: FAQs
When we talk about NSE vs BSE, their prices vary due to supply and demand. NSE usually has more active traders, leading to slightly higher prices compared to BSE.
Yes, but only from the next day (T+1). Intraday positions must be squared off on the same exchange. If shares are listed on both, you can buy on one and sell on the other, but intraday charges will apply.
Yes, many companies list both to increase visibility and attract more investors. It also helps improve liquidity for their shares.
Sensex stands for Stock Exchange Sensitive Index. It tracks the performance of the top 30 companies listed on BSE.
Nifty stands for National Stock Exchange Fifty. It represents the top 50 companies listed on the NSE.
IPO stands for Initial Public Offering. It’s when a company sells its shares to the public for the first time to raise funds.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.