What is the difference between NSE & BSE?

Stock exchanges reflect the economic health of the country. For instance, the NSE and BSE measure the health of India's economy.

As both NSE and BSE are stock exchanges, anyone can buy or sell stocks or other assets such as bonds, ETFs, etc. However, anyone cannot buy or sell directly from NSE or BSE. This is done through agents or stockbrokers.

Here we are going to answer all your questions and doubts that are likely to arise when you are starting to trade including the differences between NSE & BSE, Which Exchange is Better? , the benchmark index for NSE & BSE and many more.

Both the NSE and the BSE are major participants in the Indian economy and significantly influence it. NSE & BSE both stock exchanges are secure markets for trading.

nse & bse buildings

Difference

NSE BSE
NSE Full Form – National Stock Exchange BSE Full Form – Bombay Stock Exchange
Establised in 1992 Establised in 1875
Website: https://www.nseindia.com/ Website: https://www.bseindia.com/
NSE is the biggest stock exchange in India BSE is the oldest stock exchange in India
The NSE has more than 1600 companies listed under it The BSE has more than 5000 companies listed under it.
Global rank for NSE is 11th Global rank for BSE is 10th
Trading volume is more than BSE Trading volume is Lesser than NSE
Liquidity is More than BSE Liquidity is Lesser than NSE
NIFTY 50 is the benchmark index for NSE SENSEX is the benchmark index for BSE
NIFTY stands for National Stock Exchange Fifty SENSEX stands for Stock Exchange Sensitive Index
NSE's Nifty comprises of 50 companies BSE's SENSEX comprises of 30 companies
SME Platform: NSE Emerge SME Platform: BSE SME
NSE has moved much faster on the derivatives segment In derivative segment BSE moved slower than NSE
  • Major Indices on NSE
    • Nifty 50
    • Nifty 100
    • Nifty Next 50
    • Nifty Midcap 50
    • Nifty Smallcap 250
    • India VIX
    • Other thematic, strategy, hybrid and fixed-income indexes
  • Major Indices on BSE
    • S&P BSE SENSEX
    • S&P BSE Auto
    • S&P BSE Bankex
    • S&P BSE Capital Goods
    • S&P BSE Consumer durables
    • S&P BSE Fast-moving consumer goods
  • Segments
    • Equity, Currency, and Commodity Derivatives
    • Exchange-Traded Funds
    • Mutual Funds
    • Security Lending & Borrowing Scheme
    • Corporate Bonds
    • Initial Public Offering (IPO)
    • Institutional Placement Program (IPP)
    • Offer for Sale
  • Segments
    • Equity, Currency, and Commodity Derivatives
    • Exchange-Traded Funds
    • Mutual Funds
    • Corporate Bonds
    • Initial Public Offering (IPO)
    • Offer for Sale

FAQs on NSE & BSE

Which is better, NSE or BSE?

Both NSE and BSE have a lot of good companies listed there, so they are both good exchanges. If you trade in big quantity then NSE is good for liquidity.

Can you buy stocks from BSE and sell them in NSE?

Yes, it is possible to sell stocks on the NSE after buying them on the BSE. This is called as Arbritage. A Demat account is mandatory for buying and selling.

How is SENSEX calculated?

BSE SENSEX is calculated as – total free float market capitalization/ base market capitalization x Base index value.

How is Nifty 50 calculated?

The formula for Nifty 50 is current market value / base market capital x 1000.

What is the benchmark index for NSE & BSE?

NIFTY 50 is the benchmark index for NSE & SENSEX is the benchmark index for BSE

Why is NSE more popular than BSE?

Due to the high amount of trading volume, NSE has more liquidity than BSE, making it easier to buy and sell stocks. This is the main reason why people preferred NSE over BSE.

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