Sensex and nifty record high
Context: Sensex and Nifty are again touching record highs, driven mainly by a narrow set of large-cap heavyweights such as leading banks and Reliance.
About Sensex and Nifty Record High:
- What is BSE?
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- BSE (Bombay Stock Exchange) is India’s and Asia’s oldest stock exchange, based on Dalal Street, Mumbai.
- Brief History of BSE:
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- Originated in 1870s as the Native Share and Stock Brokers Association, where brokers literally traded under a banyan tree in Mumbai.
- Formally became the Bombay Stock Exchangein 1875, evolving from open-cry floor trading to a fully electronic platform.
- In 1995, BSE launched BOLT (BSE On-Line Trading), moving to screen-based trading and widening retail participation.
About NSE:
- What is NSE?
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- NSE ) is a nationwide, fully electronic stock exchange, created to bring transparency, speed and equal access to all investors.
- It is now India’s largest exchange by trading volume.
- Brief History of NSE:
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- Incorporated in 1992 and recognised as a stock exchange by SEBI in 1993.
- In 1994, NSE pioneered screen-based, order-driven trading in India with the cash and wholesale debt segments, breaking the old floor-trading cartel mindset.
Difference Between BSE and NSE:
| Parameter | BSE (Bombay Stock Exchange) | NSE (National Stock Exchange) |
| Year of Establishment | 1875 — Oldest stock exchange in Asia | 1992 — Set up to modernise Indian markets |
| Flagship Index | Sensex (30 large-cap stocks) | Nifty 50 (50 large-cap stocks) |
| Trading System | BOLT (BSE Online Trading) | NEAT (National Exchange for Automated Trading) |
| Trading Volume | Lower compared to NSE | Highest trading volume in India |
| Liquidity | Moderate; varies across stocks | High liquidity, especially for derivatives |
| Derivatives Market | Smaller derivatives segment | India’s largest derivatives market (F&O dominance) |