What is Sensex? What is Nifty? What are NSE and BSE?
These questions are a very popular among beginners of share market. NSE,BSE, Sensex, Nifty and SEBI these are very common name which we hear in Indian Stock Market and all have its own meaning and definition and they are very different in every way but somehow they are related to each other. Let’s understand each one of them in details:
There are two major stock exchanges in Indian stock market Bombay Stock Exchange and National Stock Exchange
BSE(Bombay Stock Exchange)
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai. It was established in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.) is Asia’s first stock exchange.
It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds. The BSE is the world's 10th largest stock exchange with an overall market capitalization of more than $2.3 trillion as of April 2018.
More than five thousand (5000) companies are listed on BSE.
In simple word, BSE is an exchange where all companies of equities are listed and can be traded through any broker.
BSE 500: Tracks 500 stocks on the Bombay Stock Exchange (BSE).
BSE 100: Tracks 100 stocks on the Bombay Stock Exchange (BSE).
BSE 200: Tracks 200 stocks on the Bombay Stock Exchange (BSE).
BSE MIDCAP:Tracks performance of companies for mid-size market capitalization.
BSE SMLCAP: Tracks performance of companies for small-size market capitalization.
And few other indices are as follow:
BSE PSU , BSE BANKEX ,BSE Teck, BSE Auto, BSE Pharma,BSE Metal,BSE IT, BSE Healthcare etc.
Sensex is the main indices of BSE and it tracks for 30 companies which are most actively traded stocks in BSE and they are representative of various industrial sectors of the Indian economy.
As of 25th September 2017, the full market capitalization of S&P BSE SENSEX was about US$795 billion 37% of GDP while its free-float market capitalization was US$438 billion.
NSE(National Stock Exchange):
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. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered the easy trading facility to the investors spread across the length and breadth of the country.
National Stock Exchange has a total market capitalization of more than US$2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018.
NSE offers trading and investment in the Equities, Derivatives, and Debt segments
More than 1900 companies are listed on NSE.
NSE has various indices which are calculated on market capitalization, and the main Index of NSE is Nifty 50 and other indices at NSE are:
NIFTY NEXT 50, NIFTY 100, NIFTY 200, NIFTY 500, NIFTY MIDCAP 150, NIFTY MIDCAP , NIFTY MIDCAP 100, NIFTY SMALL CAP 250, NIFTY SMALL CAP 50, NIFTY SMALLCAP 100, NIFTY LARGEMIDCAP 250, NIFTY MIDSMALLCAP 400
The NIFTY 50 is the main indices of NSE and it tracks for 50 companies listed in NSE from 12 different sectors of Indian economy. NIFTY 50 Index is a largest single financial product in India
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992.
SEBI has taken a very proactive role in streamlining disclosure requirements to international standards. Its main task to protect the interests of investors in securities and to promote the development, and to regulate the securities market.
source: Nse and Bse