Understanding Which Is Better For Intraday BSE Or NSE: If you are a beginner in the share market and are looking to trade or invest in the stock market, NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are the two stock exchanges where you can trade or invest in the stocks listed on these exchanges.
In this article, we are going to discuss what NSE and BSE are, the differences between them, and Which Is Better For Intraday BSE Or NSE?
What Is The National Stock Exchange(NSE)?
Founded in 1992, the NSE is one of the country’s newer stock exchanges. This exchange received its big break in 1993 as it enabled the trading industry to take advantage of its entirely automated, screen-based, and most, importantly, electronic systems.
Since 1995, the NSE has made available to the public a secure platform that allows for the trade of shares and bonds. The introduction of this electronic system helped remove the paper-based trading system that was previously in place.
Nifty-50 which is the NSE benchmark index was launched in 1995-96. April 1996 saw the introduction of the Nifty which tracks the 50 most liquid stocks that are constantly traded (and listed) on the NSE.
By keeping tabs on the Nifty 50, you can better understand prevailing economic trends. This index can also help investors determine what stocks are viable investments.
What Is The Bombay Stock Exchange?
Recognized as not just the oldest stock exchange in India, but also in Asia, the BSE came into being in the year 1875. Ever since then, they have made available high-speed trading instruments including derivatives, mutual funds, currencies, equity, and debt instruments. Founded by Premchand Roychand, this exchange was previously called the Native Share and Stock Brokers Association.
BSE only gained recognition from the Central Government of India in 1957 as the country’s premium stock exchange. The benchmark index of this exchange is the SENSEX (which is a play on the words sensitive index) and is the country’s first equity index.
This index keeps tabs on the 30 largest companies that are listed on the BSE and are its frontrunners. These companies hail from more than 10 sectors and showcase the prevailing trends in the Indian economy as well as the stock market as a whole.
Difference Between The NSE And The BSE
| Area of consideration | National Stock Exchange | Bombay Stock Exchange |
| Overview | The National Stock Exchange serves as the country’s largest stock exchange that provides a screen-based, electronic, and entirely automated trading system for interested traders, companies, organizations and investors to utilize. | The Bombay Stock Exchange is the country’s oldest and first stock exchange. In fact, it happens to be the oldest stock exchange in India and offers its clientele high-speed trading opportunities. |
| Date of Establishment | Although this stock exchange was founded in 1992 it only gained credence in 1993. | While this exchange was incorporated in 1875, it was only recognized as the premier stock exchange by the Central Government of India in 1957. |
| Ranking | NSE ranks as the world’s 11th-largest exchange in both the cash market and the largest in derivatives in the world. | BSE is ranked number 11 in the world’s largest stock exchange rankings in the cash segment. |
| Benchmark index | Nifty 50 is the NSE’s benchmark index. Of the 1600+ stocks listed on the NSE, this index tracks 50 of the largest companies whose stocks are the most liquid. | The benchmark index for the BSE is the SENSEX, comprised of the leading 30 largest companies listed under the BSE. The SENSEX is the country’s first equity index. |
| Network | The NSE network is present in over 1500 cities. | The BSE network extends across 450 cities. |
| Companies listed | Approximately 1700 companies are listed on this index. | Approximately 5800 companies find themselves listed on the BSE. |
| Liquidity | The NSE is more liquid than the BSE owing to the greater trading volume it experiences. | The liquidity level of the BSE is comparatively lower than that of the NSE. |
| Market capitalization | NSE’s market capitalization amounts to Rs. 253.029 lakh crore as of August 2021*. | The market capitalization of this index amounts to nearly Rs. 276.713 lakh crore*. |
| Products | Products traded on the NSE include offers for sale, equity, institutional placement program, currency, mutual funds, initial public offerings, traded funds, corporate bonds, and secured lending and borrowing schemes. | Products traded on the BSE include offers for sale, initial public offerings, currency, equity, corporate bonds, commodity derivatives, mutual funds, and traded funds. |
Which Is Better For Intraday BSE Or NSE?
The National stock exchange is better for intraday trading because the National stock exchange has higher volumes than the Bombay stock exchange which means that there is a higher chance of achieving your target when trading in the National stock exchange.
When trading on the National stock exchange the liquidity is much higher compared to the Bombay stock exchange which means that the fluidity of orders is very good and orders are executed instantly without any delay.
Also Read: Why there is BSE & NSE Price Difference for the Same Share?
In Closing
The NSE as well as the BSE are key players with regard to the Indian economy and play a major role in shaping it. They also help develop the country owing to which their importance cannot be minimized. Countless traders and brokers navigate these exchanges on a daily basis in the hopes to profit from their transactions.
In this article, we understood what NSE and BSE are, the difference between the two exchanges, and Which Is Better For Intraday BSE Or NSE?, We hope you enjoyed reading the article. Happy Investing!
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