Stock Exchanges
BSE and NSE: a practical guide to India’s two stock exchanges
How the Bombay Stock Exchange and National Stock Exchange work, the Sensex and NIFTY 50 indices, and how foreign investors can gain exposure to India.
India runs two principal stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Together they list thousands of companies and process the great majority of equity trades in the country, making India one of the most active emerging equity markets in the world.
The BSE is the older of the two, founded in 1875 and among the oldest exchanges in Asia. Its flagship index, the Sensex, tracks 30 large, established companies and is the benchmark most international investors follow.
The NSE, launched in 1992, is the larger of the two by trading volume. Its headline index is the NIFTY 50, which captures fifty of the most liquid large-cap stocks and is widely seen as a more representative barometer of the whole market.
Trading takes place on weekdays in Indian rupees (INR), and foreign investors normally route orders through a registered broker and comply with the FPI (foreign portfolio investor) registration rules enforced by SEBI, India’s securities regulator.
Key facts
- Sensex: The BSE benchmark: 30 of the largest Indian companies.
- NIFTY 50: The NSE index of the 50 most liquid large-caps, better balanced by sector.
- Regulator: SEBI supervises both exchanges, with mandatory disclosure rules.
- Currency: Trading settles in Indian Rupees, so FX matters for foreign investors.
Frequently asked questions
What is the difference between BSE and NSE?
Both are Indian exchanges. The BSE is older and best known for the Sensex; the NSE is larger by trading volume and best known for the NIFTY 50.
Can a foreign investor buy NSE shares?
Yes, usually through a SEBI-registered FPI account and a local broker, with rules that can change over time.