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:

  1. 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
Hindustan Unilever Ltd. CONSUMER GOODS 502664.07
Infosys Ltd. IT 493239.91
Housing Development Finance Corporation Ltd. FINANCIAL SERVICES 348898.16
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
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
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

Source: NSE, Tavaga Research

Purpose of NSE and Objectives of NSE

  1. To establish nationwide trading to all type of securities
  2. The National Stock Exchange of India ensures equal access to all investors across the country through an appropriate communication network
  3. To provide a fair and transparent security market using an electronic trading platform
  4. 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