National Stock Exchange (NSE)-Bombay Stock Exchange(BSE)
NSE was established in 1992 , after the recommendation of Ferwani committee .
It was promoted by IDBI.
Its head quarter is in Mumbai (MPPSC-Exam) .
National Stock Exchange has a total market capitalization of more than US$ 5.2 trillion, making it the world’s 7 th-largest stock exchange by Marketcap .
NSE remained the world's largest derivatives exchange for the fifth consecutive year in 2023.
It is ranked third in the world in the equity segment by number of trades (electronic order book) in 2023,
Its sensitive index (SENSEX) is known as NIFTY .This sensitive index shows the average variation of the shares of selected companies.
'CNX' in its name stands for 'CRISIL NSE Index'.
The CNX Nifty(based on 50 companies), also called the Nifty 50 or simply the Nifty, is a stock market index and benchmark index for Indian equity market.
Nifty is owned and managed by-IISL
Nifty is owned and managed by India Index Services and Products Ltd. (IISL), which is a joint venture between NSE and CRISIL (Credit Rating and Information Services of India Ltd).
IISL is India's first specialized company focused upon the index as a core product.
IISL has a marketing and licensing agreement with Standard & Poor's for co-branding equity indices.
The CNX Nifty covers 22 sectors of the Indian economy and offers investment managers exposure to the Indian market in one portfolio.
The CNX Nifty stocks represents about 67.27% of the free float market capitalization of the stocks listed at National Stock Exchange (NSE) .
The base year of NSE-
The base period for the CNX Nifty index is November 3, 1995, which marked the completion of one year of operations of National Stock Exchange Equity Market Segment.
The base value -
The base value of the index has been set at 1000 .
If the S&P CNX Nifty rises by 2% it means that the Indian stock market rose by 2%, measured in rupees.
Nifty junior (IAS Exam)
Nifty Junior is an index comprised of the next rung of 50 most liquid stocks after S&P CNX Nifty.
In fact S&P CNX Nifty and Junior Nifty may be regarded as a basket of 100 most liquid stocks in India Stocks in Junior Nifty are filtered on their liquidity characterized by their impact cost and market value represented by their market capitalization.
The stocks comprising S&P CNX Nifty and Junior Nifty are mutually exclusive i.e. a stock will never appear in both indexes at the same time.e of NIFTY next 50 are-
Adani Enterprises ,Adani Greens, Apollo Hospitals Enterprises Ltd, Ashok Leyland Ltd .
NSE EMERGE
NSE's new Platform for Small and medium-sized enterprises (SME) & Startup companies in India.
These companies can get listed on NSE without an Initial public offering (IPO).
This platform will help SME's & Startups connect with investors and help them with the raising of funds.
In August 2019, the 200th company listed on NSE's SME platform.eg- A B Infrabuild Limited
BSE (Bombay stock exchange)
Established in 1875 in Bombay, oldest and currently the biggest stock exchange.
More than 7500 companies are listed on BSE making it world's No. 1 exchange in terms of listed members(world's oldest stock exchange is Amerstdom Stock Ex. 1602 ..estab. by Dutch East India Comp.)
New York Stock Exchange. The New York Stock Exchange (NYSE) is Established in 1792. The NYSE is the world's most valuable stock exchange by market capitalization |
Founder –
Prem chand Roy–Cotton King
The exchange is situated at Phiroze Jeejeebhoy Towersat Dalal Street .
The companies listed on BSE Ltd command a total market capitalization of 5.1 Trillion in 2024.
BSE Ltd is world's fifth most active exchange in terms of number of transactions handled through its electronic trading system. .
Number of Stock exchanges in India There are 23 stock exchanges in India. Among them, two are national-level stock exchanges namely Bombay Stock exchange (BSE) and National Stock Exchange (NSE). The rest 21 are Regional Stock Exchanges (RSEs). |
The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index)
The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100).
SENSEX/ BSE 30 –
BSE 30 or simply the SENSEX, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.
The BSE National Index was renamed BSE-100 Index from 14 October 1996 and since then, it is being calculated taking into consideration only the prices of stocks listed at BSE.also-called the BSE 30 or simply the
SENSEX, is a free-float market capitalisation-weighted stock market index of 30 well-established and financially sound companies listed on BSE Ltd..
The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy.
Published since 1 January 1986, the S&P BSE SENSEX is regarded as the pulse of the domestic stock markets in India.
Leading stock exchange BSE has secured a …….trademark for its iconic building Phiroze Jeejeebhoy Towers at Dalal Street in Mumbai.
Differences between NSE and BSE:
Parameter |
NSE |
BSE |
Meaning |
NSE or National Stock Exchange is India’s largest stock exchange offering a completely automated trading set-up. |
BSE or Bombay Stock Exchange is the country’s and also Asia’s oldest stock exchange that offers high-speed trading. |
Established on |
It was founded in 1992 and recognized in 1993. |
BSE was founded in 1875 and recognised in 1957. |
Global ranking |
NSE ranks 7th/ 8th th among the world’s largest stock exchanges. |
BSE ranks 7 th among the worlds’ largest stock exchanges. |
Index name |
NSE’s benchmark index is called NIFTY 50. The index tracks 50 of the largest and highly liquid stocks out of the more than 1600 stocks listed on NSE. |
BSE’s benchmark index is called SENSEX. This index tracks 30 of the largest and leading companies listed on BSE. |
Market capitalization |
The market capitalization of NSE is 5.2 trillion usd |
The market capitalization of BSE is 5 trillion usd |
Presence |
NSE has trading terminals in more than 1500 cities. |
BSE has trading terminals in about 450 cities. |
Scale
Listed companies- |
2200 companies that are listed on NSE. |
Nearly 5300 companies are listed on BSE. |
Liquidity |
NSE offers higher liquidity since higher volumes are traded as compared to BSE. |
BSE offers comparatively lower liquidity. |
Products |
Equities, derivatives, mutual funds, currency, corporate Bonds, Initial Public Offering(IPO), Institutional Placement Program(IPP- public offer of eligible securities by an eligible seller, only to qualified institutional buyers ), etc |
Equities, derivatives, currency, commodity mutual funds, corporate bonds, Initial Public Offering(IPO),etc |
BSE has named its SME platform as BSESME .
While NSE has named it as Emerge.
Famous Stock Exchanges of The World
Name Country
Dow Jones New York
Straits times Singapore
Nikkie Tokyo (Japan)
Middax Frankfurt (Germany)
Bovespa Brazil
S & F Canada
Heng Seng Hong Kong