India’s economy, with a nominal GDP of $3.385 trillion, stands as the world’s 5th largest by GDP, set for further growth. The World Bank projects a 6.7% growth rate until 2026, while the IMF estimates 7% for the current year. This robust economic landscape is supported by two primary stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In this article, we’ll look at how many stocks are listed on NSE and BSE.
Established in 1875, BSE is India’s oldest stock exchange, facilitating the trading of various securities. It plays a crucial role in capital formation and maintains key indices like SENSEX. NSE, incorporated in 1992, began operations in 1994 and quickly became a pioneer in electronic trading. As of July 2024, NSE and BSE market capitalisation reached $5.4 trillion, cementing their position as major global players.
Stock Listings and Market Comparison
As of 2024, BSE lists 5,400+ companies, while NSE lists 2,400+. Combined, they offer investors access to over 7,800+ listed companies, though some overlap exists. While BSE and NSE dominate, regional exchanges like Calcutta and Metropolitan Stock Exchanges also operate. Some stocks are listed only on BSE due to historical reasons, lower listing fees, or less stringent requirements.
However, large companies often prefer dual listing for broader investor reach. NSE generally outperforms BSE in terms of trading volumes and liquidity, especially in derivatives. Investors often prefer NSE for its advanced technology, higher liquidity, and efficient trading environment.
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However, BSE remains significant, especially for small and medium enterprises. Both exchanges offer a wide range of instruments, including stocks, bonds, derivatives, and ETFs. NSE’s flagship index is NIFTY 50, while BSE’s is SENSEX. These indices are widely used as benchmarks for the Indian stock market.
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Criteria for inclusion and exclusion from NSE and BSE
Stocks are included or excluded from NSE and BSE based on specific, measurable criteria. For the F&O segment, stocks must be among the top 500 listed companies. They need a median quarter-sigma order size of at least ₹25 lakh and a market-wide position limit of at least ₹500 crores.
The average daily delivery value should exceed ₹10 crores over six months. For index inclusion, stocks must have an average impact cost of 0.5% or less for 90% of observations over six months. They should have at least twice the float-adjusted market capitalization of the smallest current constituent. These numerical thresholds ensure that only liquid, significant stocks are included, maintaining market quality and investor confidence.
Conclusion
BSE and NSE form the backbone of India’s capital markets, each with unique strengths. While NSE leads in trading volumes and technological innovation, BSE offers a wider range of listed companies. Together, they provide a robust platform for India’s growing economy, attracting both domestic and international investors. As India’s economic growth continues, these exchanges are poised to play an increasingly important role in global financial markets.
Written By Fazal ul vahab
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