What is BSE?
BSE stands for Bombay Stock Exchange, located along Dalal Street in Mumbai, India. BSE was the first stock exchange to be established in Asia. Initially, during its establishment in 1875, it was known as The Native Share and Stock Brokers Association.
In 1986 the BSE adopted SENSEX as its stock index. SENSEX was established as the first equity index to provide the basis for the identification of the top 30 biggest traders in the different economic sectors. Apart from SENSEX, BSE has other indices, including BSE 100, 200, 500, and BSE Metal, among many others.
As of November 2022, BSE was estimated to have a market capitalization of US$3.5 trillion. According to data from Companies Market Cap, the BSE is ranked as the 4588th company worldwide. Globally, the BSE is ranked as the 10th most valuable exchange.
BSE has since come out with an IPO and has subsequently been listed with the NSE. Its product offerings include Equity and Currency Derivatives, equities, and commodities. Some of BSE subsidiaries include; BSE SME, the biggest SME platform in India, boasting over 250 listed companies. BSE Star MF, the largest mutual fund in India, and BSE Bond, which is also significant in the bond market, are part of the subsidiaries.
What is NSE?
NSE means National Stock Exchange, the largest stock exchange in India on the basis of market capitalization. The NSE was established in 1992 and officially recognized as a stock exchange in 1993 before kick-starting its operations in 1994.
In 1995 the NSE adopted NIFTY 50 as its trading index. This index tracks down the top 50 companies trading on the NSE stock market. Since its inception, NSE has always been an electronic trading platform. According to exchange rankings, NSE is ranked as the 11th biggest stock company globally.
There are more than 1600 companies that are listed under the NSE as of November 2022. Other indices of NSE include NIFTY NEXT 50, SMALLCAP250, and 400. Some of the common services offered by the NSE include clearing and settlement, equity and currency derivatives, and commodities. NSE provides initial public offers to international companies with a desire to raise capital in India. it offers new listings and Indian depository receipts, and debt issuances.
As part of its expansion process, NSE plans to launch an IPO.
Difference Between BSE and NSE
- BSE is the Bombay stock exchange, while NSE is the National stock exchange.
- BSE was established in 1875, while NSE was incorporated in 1992 but began its operations in 1994.
- The stock index used by BSE is SENSEX, while NSE adopted NIFTY 50 as its stock index.
- BSE is ranked as the tenth best stock exchange company globally, while NSE is ranked the 11th.
- BSE boasts more than 5000 companies listed, while the NSE only has between 1600 and 2000 companies.
Comparison Between BSE and NSE
| Parameters of Comparison | BSE | NSE |
| Name | BSE is known as BOMBAY STOCK EXCHANGE | NSE is known as NATIONAL STOCK EXCHANGE |
| Stock Index | BSE adopted SENSEX, which ranks the thirty top companies trading huge volumes across the ten largest industries. | NSE adopted the NIFTY 50, which focuses on 50 biggest companies. |
| Global Rankings | It is ranked as the 10th biggest stock exchange company. | As the 11th biggest globally. |
| Companies Listed | Over 5000 companies listed under BSE | About 2000 companies are listed under NSE. |
| Market Capitalization | US$3.5 trillion | US$3.4 trillion |
References
- Patjoshi, P. K. “A Study on Stock Market Volatility Pattern of BSE and NSE in India.” Asian Journal of Management 7.3 (2016): 193-200.
- Lodhi, Girbal Singh, and Kaustubh Jain. “A comparative study of BSE and NSE.” (2014).