Difference between NSE and base tag in search stocks

General
1

When I search any stocks in the search bar in kite app,
I am seeing two tag in each stocks i.e NSE and bse what it means, what is the difference between NSE and BSE stocks.

I know NSE stand for national stock exanchages.
Bse for Bombay stock exanchages.my doubts is if I am getting both tag it means the same stocks listed in the both exchanges. But it not really correct right?

Could you please explain me clearly???

2

You’re absolutely right! Seeing both NSE and BSE tags on stocks in the Kite app means the company is listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). However, just because a company is listed on both exchanges doesn’t mean it’s exactly the same in both places. Here’s a breakdown of the key differences:

Number of listed companies:

  • BSE: Over 5,500 companies
  • NSE: Around 1,600 companies

This means you’ll find some smaller companies only listed on BSE, while larger and more popular companies are often on both.

Trading volume and liquidity:

  • NSE: Significantly higher trading volume and liquidity, meaning stocks are bought and sold more frequently here.
  • BSE: Lower trading volume and liquidity, making it potentially more volatile for certain stocks.

Market capitalization:

  • NSE: Higher market capitalization, representing the total value of all listed companies.
  • BSE: Lower market capitalization.

Trading system:

  • NSE: Fully electronic trading system since its inception.
  • BSE: Had a paper-based system for some time, transitioned to electronic trading in 1995.

Indices:

  • NSE: Nifty 50 is the main benchmark index, tracking the performance of the top 50 companies.
  • BSE: SENSEX is the main benchmark index, tracking the performance of the top 30 companies.

So, when choosing which exchange to buy a stock on, consider these factors:

  • Liquidity: If you want to buy or sell quickly, NSE might be better.
  • Price: Prices may vary slightly between exchanges, so compare before buying.
  • Specific company: Some companies might be listed on one exchange but offer specific products or services only on the other.

Overall, both NSE and BSE are legitimate exchanges with listed companies. However, understanding the differences can help you make informed investment decisions and choose the right platform for your needs.

Disclaimer:
This information is fully given by BARD (Google).

3

It’s the same stock.

Stock market is a normal market. Just like you can sell your AC on OLX as well as any other market, you can sell shares on NSE or BSE (provided the share is listed on both). Like any other market, there are minor differences in prices between same stock on both exchange at any time. HDFCBANK might be selling for 1600 or NSE and maybe 1601 or 1600.5 on BSE at the same time.

Big companies list on both stock exchanges. This allows you to buy on one exchange and sell on the same exchange or even sell on the other one (excluding intraday, applicable only for equity delivery).

NSE is very big in terms of numbers of orders and people participating. Therefore it has a lot more volumes and liquidity. Meaning you can find buyer for a large quantity of shares easily on NSE.

You can use the volume indicator to understand the difference in volumes. HDFCBANK is both on NSE and BSE.
Eg: Yesterday, on BSE, ~500,000 shares of HDFCBANK were traded. On NSE, ~15.5 million shares of HDFCBANK were traded. The difference is huge (~30x).

BSE is also prefered by small companies and penny stocks. So the overall number of companies on BSE is higher. But volume and liquidity in these penny stocks is very low (so stay away from them, no other problems with the exchange).

BSE used to be the only stock exchange in India. I think after the Harshad Mehta scam (watch Scam 1992 on Sony LIV), it was decided that competition in exchanges is good. So NSE was started. Since it was made from scratch, it adopted the digital route a lot better and gained a lot of orders and brokers. BSE was a bit late to derivatives (F&O) too so is lagging behind a bit.