Podcast
Questions and Answers
Which of the following stock exchanges is the oldest in India?
Which of the following stock exchanges is the oldest in India?
What is the benchmark index of BSE?
What is the benchmark index of BSE?
Which stock exchange has a higher market capitalization?
Which stock exchange has a higher market capitalization?
What products are offered by both BSE and NSE?
What products are offered by both BSE and NSE?
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Where is BSE located?
Where is BSE located?
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What is the ranking of BSE in terms of market capitalization globally?
What is the ranking of BSE in terms of market capitalization globally?
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What is the benchmark index of NSE?
What is the benchmark index of NSE?
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What type of Mutual Funds are mentioned in the content?
What type of Mutual Funds are mentioned in the content?
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Which of the following global indices is available for trading in Rupee-denominated futures on the NSE?
Which of the following global indices is available for trading in Rupee-denominated futures on the NSE?
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What type of debt instrument is not mentioned in the content?
What type of debt instrument is not mentioned in the content?
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What is the name of the sovereign gold bond offered by the NSE?
What is the name of the sovereign gold bond offered by the NSE?
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What is the name of the platform used for non-competitive bidding in government securities?
What is the name of the platform used for non-competitive bidding in government securities?
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What is the primary difference between the trading platforms used by BSE and NSE?
What is the primary difference between the trading platforms used by BSE and NSE?
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Which of the following is a consequence of lower trading volumes on the BSE?
Which of the following is a consequence of lower trading volumes on the BSE?
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What is the primary reason for the difference in the number of listed companies on BSE and NSE?
What is the primary reason for the difference in the number of listed companies on BSE and NSE?
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What type of products does the BSE offer in the primary market?
What type of products does the BSE offer in the primary market?
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What is a key advantage of the NSE's electronic trading platform?
What is a key advantage of the NSE's electronic trading platform?
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Study Notes
Stock Exchanges in India
- India has two leading stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)
- Established in 1875, making it the oldest stock exchange in India
- Located at Dalal Street, Mumbai
- BSE's benchmark index is the Sensex, which tracks the top 30 companies across various sectors
- Has an overall market capitalization of over Rs 118.80 crore as of October 19, 2021, ranking among the 10 most valued exchanges globally
- Offers equities, equity derivatives, commodities, and currency derivatives
- Official website: BSE Website
National Stock Exchange (NSE)
- Established in 1992 and started trading in 1994
- Although younger than BSE, NSE is the largest stock exchange in India
- NSE's benchmark index is the Nifty 50, representing the top 50 companies listed on the exchange
- Has a market capitalization of around Rs 199 trillion
- Offers equity and equity derivatives instruments, commodities, and currency derivatives
Trading Platform
- BSE uses BOLT (BSE On-Line Trading) for electronic trading, which may not be as advanced as NSE's platform.
- NSE has a fully automated, screen-based trading system, offering greater transparency, faster execution, and wider accessibility.
Liquidity
- BSE has lower trading volumes compared to NSE, resulting in lower liquidity.
- NSE has significantly higher trading volumes, making it a more liquid market.
Listed Companies
- BSE has a wider range of listed companies, exceeding 5,309, including many smaller and lesser-known companies.
- NSE has a more selective listing process, with around 2,266 companies listed, which tend to be larger and more established companies.
Products Offered
- BSE offers a range of products, including primary market instruments (IPOs, FPOs, etc.), secondary market instruments (equities, derivatives, etc.), global indices, ETFs, debt market products, and more.
- NSE offers a wider array of products beyond equities, including derivatives, currency derivatives, mutual fund units, and more.
Benchmark Indices
- BSE Sensex is a benchmark index that tracks the performance of the top 30 companies listed on the exchange.
- NSE Nifty 50 is a benchmark index that reflects the performance of the 50 largest companies by market capitalization on the NSE.
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Description
Learn about the two leading stock exchanges in India, the Bombay Stock Exchange and the National Stock Exchange, including their history, location, and benchmark indices.
