If you are a stakeholder in the stock exchange, BSE & NSE indices must hold utmost priority in your lives. Bombay stock exchange or BSE plays a crucial role as a solo stock exchange with public listing in India. NSE, or National stock exchange, on the other hand, is counted as the third-largest exchange in the equity segment in the world.
In this article, let us discuss the main differences between the two most important stock exchanges of India.
Definition of BSE
BSE is the first stock exchange in India, established in 1875 located at Dalal Street, Mumbai. It was first founded by cotton trader Premchand Roychand and now evaluates around 5,264 companies in the listing. The 30-share BSE Sensex is counted among the top 10th stock exchanges in the world, with a market capitalization of $3.8 trillion as of 2023.
Recently, it is reported that BSE Sensex has reached an all-time high mark of 66,000 on 14.07.2023. The growth is basically driven by huge IT counters and foreign market fund inflows.
Definition of NSE
NSE is a bourse or stock exchange first introduced in 1992 by CEO Vikram Limaye. With a total 2,179 listings as well as $3.27 trillion market capitalization, it is counted as one of the largest stock exchanges in the world and the third largest in the equity segment in the world.
Recently, it is reported that NSE has lifted up by 150.75 points with a record high of 19.564.50 in 2023. NSE included renowned stock exchange indices like Nifty, Nifty500, Nifty Midcap150, etc.
The Major Difference between NSE & BSE
| Bombay Stock Exchange (BSE) | National Stock Exchange (NSE) |
| BSE was established in 1875 as Native Share and Stock Brokers’ Association & known as the oldest stock exchange in India. | NSE came to be known in 1992 as a tax paying company and started its operations by 1994. |
| It is headquartered in Dalal Street, Mumbai. | It isheadquartered in Exchange Plaza, Mumbai. |
| Its market capitalization is $3.8 trillion and is ranked among the 10th stock exchanges in the world. | Its market capitalization is $3.27 trillion and is the 3rd largest stock exchange of 2022. |
| BSE isless than NSE in highest market share in derivatives like equity derivatives, commodities, current commodities, etc. | NSE is the highest in market share derivatives like equity derivatives instruments, currency derivatives, commodities, etc. |
| BSE benchmark indices include Sensex, BSE100, BSE200, BSE500, BSE MIDCAP, BSE SMLCAP, BSE PSU, BSE AUTO, BSE PHARMA, BSE FMCG and BSE METAL. | The benchmark indices of NSE include NIFTY, NIFTY50, NIFTY MIDCAP150, NIFTY Smallcap250 and NIFTY MidSmallcap 400. |
Conclusion
BSE and NSE both are crucial stock exchanges in India. As of 2023, both stock exchanges have ranked on the top with some record high indices optimising it’s future for larger growth in the Indian stock market & even worldwide.
