What is NSE & BSE? Where to trade NSE or BSE? What is Nifty & Sensex? | Investment Ideas by APDaga

What is NSE & BSE? Where to trade NSE or BSE? What is Nifty & Sensex? | Investment Ideas by APDaga
When we talk about trading in the stock market in India, you might have heard the 2 terms NSE and BSE..!

Here we will try to address the following questions:
  • What is Exchange?
  • What are NSE and BSE? 
  • Comparison: BSE vs NSE
  • What are Nifty and Sensex?
  • Where should we trade?
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Short Video:

What is Exchange?

Any marketplace where we buy or sell the shares (stocks) is known as Exchange. In India, there are 2 famous exchanges: NSE and BSE.

What are NSE and BSE?

NSE stands for National Stock Exchange and BSE stands for Bombay Stock Exchange. 
  • BSE is one of the oldest stock exchanges in Asia. On other hand, NSE is one of the electronically (technically) advanced stock exchanges.

  • BSE has more number of companies registered than NSE.

  • But if you look at the trading volume, NSE has more trading volume compared to BSE. So you get better liquidity at NSE.

Comparison BSE vs NSE:

Here are some major key difference between BSE and NSE

Basis for comparison



Brief Introduction

It is the oldest stock exchange marketplace not just for the India but Asia as well, which offers high speed trading to its customers.

It is the biggest stock exchange marketplace of the India along with a front runner in the introduction of the fully automated, electronic trading system across the country.

Founded in



Benchmark index

Sensex 30

Nifty 50




Total listed companies



Market Capitalization

Around 2.3 trillion

Around 2.27 trillion

Global Rank




Over 450 cities

Over 1500 cities


Comparably lower than NSE

In case of liquidity, NSE is a clear winner, since volumes traded in NSE are much higher compared with BSE.

credit: (source)

What are Nifty and Sensex?

To check the trend of the market i.e. if the market is going up or down (high or low), It is difficult to track the performance of all the listed companies. So to solve that problem, NSE and BSE have come up with their own indices: Nifty and Sensex.
  • Nifty is NSE's index and it considers the top 50 companies listed on NSE.

  • Sensex is BSE's index which considers the top 30 companies listed on BSE.

Nifty and Sensex are the barometers of the NSE and BSE respectively and are used to track the trend of the market.

All these are the technicalities that you should know but don't play a significant role in your investment journey over a long period.

Where should you trade? NSE or BSE?

If after getting all the technical information, you are confused about where to trade then the answer is:
  • Some companies are listed on BSE only, so you have to trade it on BSE (you don't have a choice really)

  • If you want to trade company stocks that are listed on both NSE and BSE, then it's up to you. Honestly, this doesn't make much difference in your investment over a long period.
    • Because the price (of the same stock) on BSE and NSE is almost the same with a tiny insignificant difference. 

  • and Both BSE and NSE are very stable exchanges in India and both are regulated by SEBI. so nothing to worry about specifically.

  • So, Don't waste your time on this question and start investing ASAP. 
Early you start, more (returns) you get...!

Get your concepts clear and start investing... 

If you have any doubt about investing, feel free to drop it in the comment box below. I will try my best to help you and smoothen your investment journey. 

Thank you,
Akshay P Daga
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