National Stock Exchange of India (NSE) and Bombay Stock Exchange of India (BSE) are the two major stock exchange of India. Most of the share trading in the Indian equity market takes place on these two stock exchanges.
The BSE was Asia’s first stock exchange. It was established in year 1875. With a median trade speed of 6 microseconds, BSE falls into the category of world’s fastest stock exchanges. With an overall market capitalization of $1.83 Trillion as of March, 2017, it became the world’s 11th largest stock exchange. On the BSE more than 5500 companies are publically listed.
On the other hand NSE was founded in the year 1992; it started trading in the year 1994. It was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country and was the first demutualized electronic exchange in the country. It became the 12th largest stock exchange as of March 2016 with total market capitalization of more than US$1.41 trillion.
The Sensex, also known as S&P BSE Sensex or S&P Bombay Stock Exchange Sensitive Index or BSE 30, is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange. Published since January 1, 1986, the Sensex is regarded as the pulse of the domestic stock markets in India. One of the oldest market indexes for equities, Sensex represents about 45 per cent of the index’s free-float market capitalization.
The S&P CNX Nifty or Nift 50 or simply Nift is NSE’s benchmark stock market index for Indian equity market. It was launched on April 21, 1996. It is owned and managed by India Index Services and Products (IISL), which is a wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. Nifty includes 50 shares listed on the NSE, which represent about 62 per cent of its free-float market capitalization.
The Securities & Exchange Board of India (SEBI) manages the overall responsibility of development, regulation and supervision of the stock market in India. Sebi was formed in 1992 as an independent authority to lay down market rules in line with the best market practices. In case of any breach, Sebi reserves the right to impose penalties on market participants.