What Is the Difference Between NSE and BSE?

Difference Between NSE and BSE: When it comes to stock market trading, most people get confused about BSE and NSE. NSE and BSE are the two major stock exchanges in India that list the stocks of the major companies in India. Both of them play a crucial role in the Indian financial system. Let’s now know the differences, history, and their trading patterns.

What is the Bombay Stock Exchange (BSE):
– The Bombay Stock Exchange, which is also called BSE, was established in 1875. This is one of the oldest stock exchanges in Asia and has the longest legacy in the Indian financial market.

– The Bombay Stock Exchange handles over 30 major companies in India. Compared to NSE, BSE has a smaller volume of shares.

– The Bombay Stock Exchange used to operate on a paper-based system, but over the period of time, after tech advancements, they have adopted electronic trading.

– The benchmark index of the Bombay Stock Exchange is SENSEX.

What is the National Stock Exchange (NSE)?

– National Stock Exchange (NSE), which is a very modern and technologically advanced trading platform, was first introduced in 1992. This was one of the revolutionized platforms that introduced electronic trading for the first time in India.

– Because of electronic trading, investors can buy or sell shares faster and more easily.

– The National Stock Exchange handles over 50 major companies in India. Compared to the Bombay Stock Exchange, the National Stock Exchange is more advanced and has a larger volume of shares.

– The benchmark index of the National Stock Exchange is NIFTY 50.

Also Read: Indian Stock Market Global Changes Impacting Sensex and Nifty

Which is better for Investors: BSE or NSE?
Both the trading platforms are safe and secure, which are regulated by SEBI, but there are very minor differences that should be noted. The National Stock Exchange (NSE) is preferred by day traders who are there for the liquidity, and the technology is very advanced compared to BSE. Comparing this to the Bombay Stock Exchange, which is also called BSE, is a traditional and the oldest trading platform in India. BSE is a perfect choice for long-term investors. The other difference between NSE and BSE is, NSE is much faster and modern in terms of technology, and BSE is a traditional trading platform and is the oldest trading platform. BSE also known as the backbone of the Indian stock market.