NSE Vs. BSE: 101 Guide With Detailed Explanation Of Market Share and Financial Summary


We come across the word “Stock Exchange” in our day-to-day life or may have seen people who work in finance or invest in the stock market. The stock exchange is a crucial component of the stock market, but it does not own stocks. Instead, it is a medium  that brings stock sellers and stock buyers to the same platform. In India, stocks or shares can be traded on different exchanges, such as NSE (National Stock Exchange) or BSE (Bombay Stock Exchange). Stride along with us to learn about the difference between NSE and BSE. Let’s start from scratch.

What Is the National Stock Exchange?

The National Stock Exchange of India Limited is the biggest financial market in India. Established in 1992, NSE was established as a refined and electronic market, and now it is a fully automated electronic platform. NSE is the world’s fourth-largest platform based on equity trading volume. In 1994, stock trading began on NSE with the introduction of the wholesale debt market and a cash market segment. The exchange was established to bring enhanced transparency to the Indian stock market. 

NSE has $3.27 trillion in total market capitalization till Jan 2023 and cemented its name as one of the world’s largest stock exchanges. The main advantages of the NSE are its high liquidity and ease of trading due to its incorporation of the latest technologies.

Currently, NSE conducts transactions in equity and wholesale debt markets. The NIFTY 50 Index is one of the widely popular offerings of the NSE, which monitors the largest assets in the Indian equity market and represents the majority of total market capitalization. NSE has got $2.27 trillion in total market capitalization till June 2020 and cemented its name as one of the world’s largest stock exchanges. 

What Is the Bombay Stock Exchange?

Incorporated in 1875 as the Native Share and Stock Brokers’ Association, the Bombay Stock Exchange (BSE) is India’s first and largest securities market. One of the largest exchanges in the world, BSE lists nearly 6000 companies and is known for its support for developing capital markets in India. BSE is the first stock exchange in Asia and encompasses a platform where small and medium enterprises trade equities. 

BSE is the first stock exchange in Asia and encompasses a platform where small and medium enterprises trade equities on a low volume. BSE had a market capitalisation of over ₹3.8 trillion as of July 2023, making it the biggest stock exchange in India. In November 2023, BSE became the first and the only Indian stock exchange to enter the $4 trillion club. This was a huge achievement for BSE and for the Indian stock market. This can attract more eyes to the equity market of India.

Key Differences Between NSE and BSE

Regardless of whether you’re an investor or a trader, you must know what these stock exchanges are and the essential differences between the BSE and the NSE. Here is some useful information about these two stock exchanges that will assist you in recognizing and perceiving the distinctions between the NSE and the BSE.

Basis of Comparison  NSE  BSE 
Full Form National Stock Exchange  Bombay Stock Exchange 
Incorporation Established in 1992 Established in 1875
Introduction India’s First Fully Automated, Electronic Trading Platform  The Oldest Stock Exchange In India 
Benchmark Index  NIFTY 50 SENSEX
Headquarters Located In Mumbai  Located In Mumbai 
Companies Listed  1696 5749
Products  1. Equity 
2. Equity, Currency, and Commodity Derivatives
3. Exchange-Traded Funds
4. Mutual Funds
5. Security Lending & Borrowing Scheme
6. Corporate Bonds
7. Initial Public Offering (IPO)
8. Institutional Placement Program (IPP)
9. Offer for Sale
1. Equity 
2. Equity, Currency, and Commodity Derivatives
3. Exchange-Traded Funds
4. Mutual Funds
5. Corporate Bonds
6. Initial Public Offering (IPO)
7. Offer for Sale
Market Capitalization  2.27 Trillion 2.1 Trillion
Liquidity  High Liquidity Low Liquidity 
Global Rank  11th 10th 

Profit & Loss Summary: NSE Vs. BSE

Profit & Loss (CR) – FY 2022 NSE  BSE 
Revenue 9499.6 743
EBITDA  6499.3 285
PBT  6822 264
PAT 5108 180
EPS  103.2 18.51

Balance Sheet: NSE Vs. BSE

Balance Sheet (CR) NSE  BSE 
Total Equity  15418.28 2654.52
Total Non-Current Assets  9218.37 1231.86
Total Current Assets 26, 388.63 4953.54
Total Assets  35,607.00 6185.40
Total Non-Current Liabilities  469.61 8.68
Total Current Liabilities  15, 463.88 2746.12 

Difference Between NSE and BSE Based On Cash Flow

Particulars (As of March 22) NSE  BSE 
Profit Before Tax 6,912.29 195.12
Net Cash Flow from Operating Activity 5,831.69 202.50
Net Cash Used in Investing Activity 4,185.27 -216.11
Net Cash Used in Financing Activity 1,258.31 -96.19
Net Inc/Dec In Cash and Cash Equivalent 388.11 -109.80
Cash and Cash Equivalent – Beginning of the Year 9,169.07 115.63

Why is the NSE Better Than the BSE? 

As you can see from the data provided above, NSE has more trading volume than BSE, indicating that many stock buyers and sellers are available regarding NSE unlisted shares. In addition, NSE’s greater liquidity compared to BSE makes it a better choice. Greater liquidity indicates easier trading, ultimately providing several opportunities to convert shares into money. If you are a retail investor wishing to trade in derivatives, NSE would be a preferred alternative since NSE has a monopoly in the derivative contract segment, and the trading numbers of NSE Nifty are high due to its better liquidity. 

Certainly, NSE pre-IPO stock is the best bet for you if you wish to put your money into stock investment as a retail investor. NSE is dominating with more than 90% market share in all categories. Compared to BSE, its revenue growth has been three times more than BSE for the last four years. As per market expectation, NSE is expected to deliver an EPS (Equity Per Share) of 150 per share in the financial year 2023, which is 8 times more than the EPS of BSE.  In addition, NSE has proclaimed a dividend of Rs 42 per share in 2022 and expects around Rs 70 per share in 2023. Based on the above data and the comparison, if you buy NSE unlisted shares, count on Stockify. We are one of India’s trusted online stock trading platforms where you can buy and sell unlisted shares in India from the comfort of your home. 

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