Major stock exchanges in India : BSE & NSE

Introduction

The Stock Exchanges are a key part of any securities market. It overviews the transaction between traders and buyers. In India stock exchanges in our country follows a set of rules and regulations directed by the Securities and Exchange Board of India or SEBI. SEBI protects the investors and among many functions, it aims to promote the Indian stock market. With a robust and dynamic economy, India boasts several prominent stock exchanges that play a pivotal role in the country’s financial landscape. Here, we’ll explore the key stock exchanges in India and delve into their significance.

नोट : इस लेख को हिंदी में पढ़ें। 

Bombay Stock Exchange (BSE)

Bombay Stock Exchange is the oldest stock exchange in India and was Founded in 1875 by Premchand Roychand. It is located in Mumbai having a total market capitalization value of $3.8 trillion.
Features of BSE are:
  • Sensex: The BSE Sensex is India’s benchmark stock index, representing the performance of the top 30 companies listed on the exchange.
  • Diverse Listings: A wide range of companies spanning various sectors is listed on BSE, making it a diverse marketplace for investors.
  • Historical Significance: Since BSE is India’s first stock exchange, it holds immense historical significance and is recognized globally.

National Stock Exchange (NSE)

National Stock Exchange was established in 1994. As compared to the Bombay Stock Exchange , NSE is quite new.
Features of NSE are:
Nifty: The NSE Nifty 50 index, commonly referred to as the Nifty comprises the 50 largest and most liquid companies listed on the NSE. It is another crucial benchmark for India’s stock market performance.
Technology enabled: With its technology enabled platform, order execution at NSE happens at a very fast pace which enables investors to avail best prices.
High Liquidity: Being the country’s largest exchange with high liquidity, and a market capitalization of approximately $3.27 Trillion makes NSE ideal choice for investment by investors.

Significance of Stock Exchanges in India

The following are some examples of the stock exchange’s significance:
  • They provide a medium for companies to raise capital by issuing shares to the public, enabling business expansion and growth.
  • By investing in the stock market on successful listed companies , investors like individuals and businesses can increase their investment capital drastically.
  • The performance of stock exchanges indicates the overall health of the Indian economy, In a country like India which is rapidly on the growth track, following stock indices like nifty and Sensex plays a crucial role.

Conclusion

Stock exchange is helpful to both investors(helps them in creating wealth) and enterprises(to achieve their business goals). It has a major impact on any country’s economic success.

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Disclaimer:This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.

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