What is Stock Exchange in India?

Published by BESDATA on

A place where Companies list shares of their stock on an exchange — often to raise money to grow their business — and investors purchase those shares.

In simple words Stock Exchange means, Where Buyers & Sellers meet place for buying & purchasing a stock.

Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

BSE:

  • BSE is the first stock exchange of Asia. Established in 1875.
  • Approx 5000 companies are listed in BSE.
  • In BSE, The 30 component companies which are some of the largest and most actively traded stocks, are representative of various industrial sectors of the Indian economy.
  • A figure indicating the relative prices of 30 companies shares on the BSE is called SENSEX (Sensitive & Index).
  • If the Sensex goes up, there is a high probability, stock prices of companies listed on BSE will largely go up.

NSE:

  • The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located in Mumbai.
  • The NSE was established in 1992 as the first demutualized electronic exchange in the country.
  • Approx 1600 companies are listed in NSE.
  • Simillarly like BSE, A figure indicating the relative prices of 50 companies shares on the NSE is called NIFTY 50  (National Stock Exchange Fifty).
  • If Nifty goes up, there is a high probability, stock prices of companies listed on NSE will largely go up.

*Note: You can trade in both Sensex & Nifty

To open an account go through link https://zerodha.com/?c=ZE4618


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