National Stock Exchange (NSE)
What is the National Stock Exchange of India Limited (NSE)?
The National Stock Exchange of India Ltd (NSE) is India’s leading stock exchange and the second largest in the world in terms of volume of equity shares from January to June 2018 as per the World Federation of Exchanges report. The National Stock Exchange of India Ltd. was established in 1992.
What is a stock exchange?
A stock exchange in India also referred to as a bourse, facilitates the buying and selling of securities such as equity shares, bonds, exchange-traded funds, and other financial instruments such as futures, options, etc.
It also provides the facility of raising capital through an IPO (Initial Public Offering), FPO (Follow on Public Offer), or NFO (New Fund Offer).
A stock exchange mobilizes savings for investments, creates multiple investment avenues for retail and institutional investors, facilitates acquisitions, and is considered to be the barometer of an economy.
Leading Stock Exchanges in the world / Top stock exchanges in the world
| Stock Exchange | Market Capitalisation |
| New York Stock Exchange (NYSE) | $19.3 trillion. |
| Nasdaq | $13.8 trillion |
| Tokyo Stock Exchange | $5.7 trillion |
| Shanghai Stock Exchange | $4.9 trillion |
| Hong Kong Stock Exchange | $3.9 trillion |
| Euronext | $4.4 trillion |
| Shenzhen Stock Exchange | $3.5 trillion |
| London Stock Exchange | $3.2 trillion |
| Toronto Stock Exchange | $2.1 trillion |
| Bombay Stock Exchange (BSE) | $1.7 trillion |
Source: Economic Times, Tavaga Research
More about National Stock Exchange of India
The National Stock Exchange of India Limited (NSE) was established in 1992 and recognized as a stock exchange in 1993. NSE is situated in Mumbai, having its headquarters in the famous Bandra Kurla Complex of Mumbai with branch offices located in Ahmedabad, Chennai, Delhi, Hyderabad, and Kolkata. Mr. Vikram Limaye is the MD and CEO of the National Stock Exchange of India.
National Stock Exchange of India (NSE) emerged as the world’s largest derivatives exchange in terms of volume (contracts traded) in 2019. Over the last five years, the equity derivatives segment on NSE has grown by more than 70%, from an ADV (average daily volume) of about Rs 52,371 crores in 2015 to Rs 88,772 crores in 2019.
National Stock Exchange of India (NSE) was the world’s third-largest stock exchange in terms of trading volume in the cash equities segment in 2019. The daily average turnover of the cash equities segment has increased by a whopping 90% from about Rs ₹17,572 crores in 2015 to about Rs. 34,264 crores in 2019.
The National Stock Exchange of India Limited (NSE) was set up by leading financial institutions, banks, insurance companies, and other financial intermediaries. NSE is managed by a team of professionals who do not directly trade on the stock exchange. The trading rights are with trading members who offer their services to the investors.
NSE launched the fully automated electronic screen-based trading in 1994 and index futures (derivatives trading) and internet-based trading in 2000.
Major indexes of NSE:
- Nifty 50 – NSE
Nifty is a combination of two words – National and Fifty. Nifty 50 was introduced by the National Stock Exchange of India and it came into existence on 21st April 1996. Nifty 50 is considered to be the barometer of Indian capital markets. Nifty 50 is the benchmark index under NSE
Top 50 companies under Nifty 50 NSE:
| Company Name | Industry | Market Capitalization (Rs. Cr) |
| Reliance Industries Ltd. | OIL & GAS | 1469636.5 |
| Tata Consultancy Services Ltd. | IT | 1061924.87 |
| HDFC Bank Ltd. | FINANCIAL SERVICES | 659426.31 |
| Hindustan Unilever Ltd. | CONSUMER GOODS | 502664.07 |
| Infosys Ltd. | IT | 493239.91 |
| Housing Development Finance Corporation Ltd. | FINANCIAL SERVICES | 348898.16 |
| ICICI Bank Ltd. | FINANCIAL SERVICES | 273213.06 |
| Kotak Mahindra Bank Ltd. | FINANCIAL SERVICES | 266090 |
| HCL Technologies Ltd. | IT | 244351.97 |
| Bharti Airtel Ltd. | TELECOM | 226596.57 |
| Wipro Ltd. | IT | 214739.86 |
| Maruti Suzuki India Ltd. | AUTOMOBILE | 212418.17 |
| ITC Ltd. | CONSUMER GOODS | 209431.72 |
| Asian Paints Ltd. | CONSUMER GOODS | 198141.49 |
| Bajaj Finance Ltd. | FINANCIAL SERVICES | 197238.89 |
| State Bank of India | FINANCIAL SERVICES | 174610.02 |
| Nestle India Ltd. | CONSUMER GOODS | 151322.54 |
| Axis Bank Ltd. | FINANCIAL SERVICES | 140828.61 |
| UltraTech Cement Ltd. | CEMENT & CEMENT PRODUCTS | 126477.48 |
| Larsen & Toubro Ltd. | CONSTRUCTION | 125871.72 |
| Sun Pharmaceutical Industries Ltd. | PHARMA | 120734.54 |
| HDFC Life Insurance Company Ltd. | FINANCIAL SERVICES | 114392.35 |
| Titan Company Ltd. | CONSUMER GOODS | 109175.5 |
| Bajaj Finserv Ltd. | FINANCIAL SERVICES | 93425.52 |
| Britannia Industries Ltd. | CONSUMER GOODS | 90128.88 |
| Bajaj Auto Ltd. | AUTOMOBILE | 87828.68 |
| Oil & Natural Gas Corporation Ltd. | OIL & GAS | 86866.83 |
| Dr. Reddy’s Laboratories Ltd. | PHARMA | 85794.95 |
| Power Grid Corporation of India Ltd. | POWER | 84150.12 |
| Tech Mahindra Ltd. | IT | 83596.31 |
| Divi’s Laboratories Ltd. | PHARMA | 83485.89 |
| NTPC Ltd. | POWER | 81976.41 |
| SBI Life Insurance Company Ltd. | FINANCIAL SERVICES | 78703.87 |
| Mahindra & Mahindra Ltd. | AUTOMOBILE | 77923.31 |
| Shree Cement Ltd. | CEMENT & CEMENT PRODUCTS | 75712.74 |
| Bharat Petroleum Corporation Ltd. | OIL & GAS | 73364.13 |
| Indian Oil Corporation Ltd. | OIL & GAS | 71688.82 |
| Adani Ports and Special Economic Zone Ltd. | SERVICES | 70,908.14 |
| Coal India Ltd. | METALS | 70347.54 |
| JSW Steel Ltd. | METALS | 69930.19 |
| Hero MotoCorp Ltd. | AUTOMOBILE | 65571.78 |
| Cipla Ltd. | PHARMA | 63559.55 |
| Eicher Motors Ltd. | AUTOMOBILE | 60672.76 |
| Grasim Industries Ltd. | CEMENT & CEMENT PRODUCTS | 49180.13 |
| IndusInd Bank Ltd. | FINANCIAL SERVICES | 45916.63 |
| Tata Motors Ltd. | AUTOMOBILE | 41423.14 |
| Tata Steel Ltd. | METALS | 41398.5 |
| UPL Ltd. | FERTILISERS & PESTICIDES | 38675.98 |
| Hindalco Industries Ltd. | METALS | 38648.5 |
| GAIL (India) Ltd. | OIL & GAS | 37770.33 |
Source: NSE, Tavaga Research
2. Bank Nifty
The Nifty bank index or the Bank Nifty index was developed by NSE in 2003 to measure the performance of public and private sector banks of India, which is one of the critical sectors of India.
Bank Nifty Weightage
Purpose of NSE and Objectives of NSE
- To establish nationwide trading to all type of securities
- The National Stock Exchange of India ensures equal access to all investors across the country through an appropriate communication network
- To provide a fair and transparent security market using an electronic trading platform
- Enabling shorter cycles and book entry settlements
How many stocks listed in NSE?
Close to 2000 stocks are listed on NSE and 50 stocks are included in the Nifty 50 index.
NSE Holidays 2020
| Sr. No. | Date | Day | Description |
| 1. | 26-Jan-2020 | Sunday | Republic Day |
| 2. | 21-Feb-2020 | Friday | Mahashivratri |
| 3. | 10-Mar-2020 | Tuesday | Holi |
| 4. | 02-Apr-2020 | Thursday | Ram Navami |
| 5. | 06-Apr-2020 | Monday | Mahavir Jayanti |
| 6. | 10-Apr-2020 | Friday | Good Friday |
| 7. | 14-Apr-2020 | Tuesday | Dr. Baba Saheb Ambedkar Jayanti |
| 8. | 01-May-2020 | Friday | Maharashtra Day |
| 9. | 25-May-2020 | Monday | Ramzan Id |
| 10. | 01-Aug-2020 | Saturday | Bakri Id |
| 11. | 15-Aug-2020 | Saturday | Independence Day |
| 12. | 22-Aug-2020 | Saturday | Ganesh Chaturthi |
| 13. | 30-Aug-2020 | Sunday | Moharram |
| 14. | 02-Oct-2020 | Friday | Mahatma Gandhi Jayanti |
| 15. | 25-Oct-2020 | Sunday | Dasera |
| 16. | 14-Nov-2020 | Saturday | Diwali Laxmi Pujan |
| 17. | 16-Nov-2020 | Monday | Diwali – Balipratipada |
| 18. | 30-Nov-2020 | Monday | Gurunanak Jayanti |
| 19. | 25-Dec-2020 | Friday | Christmas |
Source: NSE, Tavaga Research
Other NSE Indices
| Broad-Based Indices | Sectoral Indices | Thematic Indices | Strategy Indices | G-Sec Indices |
| Nifty 50 | Nifty Auto | Nifty CPSE | Nifty 50 Arbitrage | Nifty 8-13yr G-Sec |
| Nifty Next 50 | Nifty Bank | Nifty Commodities | Nifty 50 Futures PR | Nifty 10yr Benchmark |
| Nifty 100 | Nifty Financial Services | Nifty Energy | Nifty Alpha 50 | Nifty 4-8yr G-Sec |
| Nifty 200 | Nifty FMCG | Nifty infrastructure | Nifty 100 Equal Weight | Nifty 11-15yr G-Sec |
| Nifty 500 | Nifty IT | Nifty MNC | Nifty Dividend Opportunities | Nifty Composite G-Sec |
| Nifty Midcap 150 | Nifty Media | Nifty PSE | Nifty Growth Sectors | Nifty 5yr Benchmark G-Sec |
| Nifty Midcap 50 | Nifty Metal | Nifty Shariah 25 | Nifty High Beta 50 | |
| Nifty Midcap 100 | Nifty Pharma | Nifty Tata Group | Nifty Low Volatility 50 | |
| Nifty Smallcap 250 | Nifty Private Bank | Nifty100 ESG | Nifty100 Quality 30 | |
| Nifty Smallcap 50 | Nifty Realty | Nifty Shariah 25 | Nifty50 Equal Weight | |
| Nifty Smallcap 100 | Nifty PSU Bank | Nifty50 Shariah | Nifty50 USD | |
| Nifty LargeMidcap 250 | Nifty Consumer Durables | Nifty Mahindra | Nifty500 Value 50 | |
| Nifty MidSmallcap 400 | Nifty Oil & Gas | Nifty SME Emerge | Nifty200 Quality 30 |
Source – NSE, Tavaga Research