Module 1 ยท Stock Market Basics
India has two main exchanges. Most large companies are listed on both.
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are India's two main exchanges. The NSE is the world's largest by number of trades; the BSE is Asia's oldest, founded in 1875.
Most well-known companies are listed on both, so the price is nearly identical. The Nifty 50 is the NSE's flagship index, while the Sensex is the BSE's.
For a beginner, the practical difference is small: you can buy most large stocks on either exchange through your broker.
Example: HDFC Bank
HDFC Bank trades on both the NSE (ticker HDFCBANK) and the BSE. The price on both is essentially the same because arbitrage keeps them in line.
Which index belongs to the NSE?
Open your broker app and look up one large stock. Can you see it trades on both NSE and BSE?