NSE vs BSE: What’s the Difference Between India’s Two Major Stock Exchanges?

Stock Market Basics

Saumil Patel

Saumil Patel leads Content Marketing at InCred Money, using his deep knowledge of financial markets and investment strategies to create clear, insightful content for investors. Passionate about alternative investments and high-growth private companies, he helps investors diversify and spot early-stage opportunities.

August 27th, 2025 | 6-7 min

See all articles by Saumil Patel

Introduction: What is Stock Exchanges?
What is NSE?
What is BSE?
Comparison between NSE and BSE
- Foundation and History
- Benchmark Index
- Companies Listed
- Market Difference
- Market Capitalization
- Trading Volume
- Network and Reach
- Global Rank
- Trading Hours
- Electronic Trading
- Types of Products Traded
BSE vs NSE: Which is Better for You?

When it comes to investing or trading in the Indian stock market, two names you’ll hear often are NSE and BSE. These are the country’s biggest stock exchanges, and while they might seem similar on the surface, they work a little differently. If you’re wondering which one is right for you, it helps to understand what sets them apart. From how they operate to what kind of companies they list, this blog will help you decide which platform fits your trading goals better.

What is a Stock Exchange?

A stock exchange is a place where people buy and sell securities like stocks and bonds. It works like a marketplace that brings together buyers and sellers, helping them trade in a structured and safe environment.

What is NSE?

The National Stock Exchange (NSE) is the biggest stock exchange in India when it comes to market value. It started in 1992 and was officially recognised as a stock exchange in 1993 under the Securities Contracts Regulation Act of 1956. NSE made stock trading easier by introducing an electronic system, which replaced the traditional paper-based method. Based in Mumbai, NSE handles everything from trading and clearing to equity settlements and derivatives. The performance of this exchange is tracked using the NIFTY 50 index, which includes the top 50 companies from different sectors of the Indian economy.

Unlike the Bombay Stock Exchange, NSE is not itself listed on any exchange. This means you can’t buy NSE shares directly in the stock market. If you want to invest in the exchange as a business, you would need to purchase NSE’s unlisted shares through various unlisted share platforms.

What is BSE?

The Bombay Stock Exchange (BSE) is India’s oldest stock exchange and has been around since 1875. It gained permanent recognition under the Securities Contracts Regulation Act of 1956. BSE provides a well-organised platform for trading in shares, currencies, bonds, derivatives, and mutual funds. It also offers services like clearing, settlement, risk management, market data, and investor education. BSE is not just India’s first stock exchange but also Asia’s oldest and one of the most respected ones globally. Its benchmark index, the S&P BSE Sensex, tracks the performance of the top 30 listed companies.

Comparison between NSE and BSE

Aspect	National Stock Exchange (NSE)	Bombay Stock Exchange (BSE)
Foundation and History	NSE started operations in 1992 and was officially recognised in 1993. It was set up to bring more transparency and technology to stock trading in India.	BSE was founded back in 1875. It’s Asia’s first stock exchange and one of the oldest in the world.
Benchmark Index	Nifty 50 is the main index for NSE. It tracks 50 actively traded companies from different sectors.	Sensex is the benchmark index for BSE. It includes 30 of the top companies listed on the exchange.
Companies Listed	Has fewer companies listed compared to BSE but most of the highly traded ones are present here.	Has a larger number of companies listed, including many small and mid-sized ones.
Market Difference	Known for quick order matching, it is more popular among day traders and institutional investors.	Still active and well-used, especially by long-term investors and those trading in smaller companies.
Market Capitalization	Slightly lower than BSE in terms of total companies listed, but many large companies prefer listing here for active trading.	Has one of the highest market capitalisations in India due to the large number of listed companies.
Trading Volume	Trades higher volumes on a daily basis. This makes it easier to buy or sell quickly without price jumps.	Trading volumes are lower compared to NSE. Some stocks may be less liquid, especially in small-cap segments.
Network and Reach	Strong technology-driven network across the country. Known for its fast and stable trading systems.	Also has wide reach, and being older, it has a strong offline presence in smaller cities.
Global Rank	Ranks among the top stock exchanges globally based on the number of trades and trading volume.	Also ranks globally but slightly lower than NSE in terms of daily trade volume and activity.
Trading Hours	Same for both: 9:15 AM to 3:30 PM, Monday to Friday.	Same as NSE: 9:15 AM to 3:30 PM, Monday to Friday.
Electronic Trading	NSE was the first to bring in fully automated screen-based trading in India. It’s known for high-speed trading.	BSE also moved to electronic trading soon after NSE and has upgraded its systems over time.
Types of Products Traded	Offers equity, derivatives, currency, debt instruments, and more. It’s popular for futures and options.	Also offers equity, mutual funds, debt instruments, derivatives, and SME trading. Known for its wider variety of small company listings.

BSE vs NSE: Which is Better for You?

Choosing between BSE and NSE really depends on what kind of trader or investor you are. If you want quick trades and high liquidity, NSE is usually the better choice because it handles a higher volume of trades. But if you're interested in exploring a wider range of companies, especially small and mid-cap stocks, then BSE gives you more variety.

If you're thinking long term and prefer investing in large-cap companies, NSE’s Nifty 50 index is a solid option. And for anyone trading in futures and options, NSE has a platform built for derivatives, which makes it more suitable for that style of trading.

So take a step back, look at how you trade, and think about what you’re aiming for. Neither exchange is better overall. It just depends on what fits your strategy. Do your research, understand your approach, and choose the one that lines up with your plan.