Which is better index Sensex or index Nifty 50?

sense or nifty which is better, nse vs bse

As
you know BSE and NSE at two biggest stock exchanges in India there are two
dozen more exchanges but there in significant in terms of size first let get
some facts about this exchanges. BSE was established back in 1875 and NSE is a
relatively new exchange BSE is Asia’s oldest stock exchange and in case you are
wondering which is the world’s oldest that would be Amsterdam stock exchange.
NSE is the new on the block relatively speaking of course BSE has over 5000
listed companies and NSE has about 2000 BSE is a publicly listed company were
as NSE is still a privately held company is coming up with an and their
respective official websites. It’s important to remember that in spite of these
differences both operate under SEBI guideline. Since NSE was established that
has been a fierce battle between the two to attract more trading volume after
all more trading on the exchange will mean more money for the day change the
battle for attracting traders like you and me.

Liquidity

Liquidity
is the best for traders after all higher liquidity means title spread lower
slippages and is of entry and exit the trades. Liquidity is especially important
for intraday and swing traders check out the turnover of these two exchanges
turnover refers to the value of the shares traded during a certain period is
measured in Rupees of course. Turnover is a direct reflection of liquidity on
that exchange higher turnover means that more traders at trading on the exchange
this is a comparison of BSE and NSE.
delivery report of icicibank, icicibank shareprice

delivery report of icicibank, icicibank shareprice
Note: 1st image is BSE and second image is NSE.

Cash
segment meaning much more traders buying and selling shares at NSE and BSE
let’s take a specific stock go with ICICI bank on 24th Jan 2020 to 30th Jan 2020 how much shares traded on BSE and look at that is as much on NSE means that if you were
trading shares of ICICI Bank you had better spreads lower slippages and easier
entry and exit in trade if you are trading NSE. NSE is win according to cash
segment and trader’s interest.

Derivatives

Now
let’s go to round to trading in derivatives liquidity is even more critical in
derivatives without liquidity derivatives trader is a nothing. Just like the
cash segment and NSE is the most liquid exchange for derivatives that is
futures and options in fact and NSE is the undisputed leader so much so that BSE
doesn’t even come close look at that 90% of trading in derivatives happen on NSE.
Example
you want to trade derivatives in the India’s biggest private sector bank HDFC
bank has a volume on NSE and what kind of rate on BSE nothing not a single
derivative traded on Bombay Stock Exchange so what else can you do you have no
other option but to trade at NSE. Also, when it comes to trading in Indices
Nifty and Bank Nifty are the most liquid scripts and they trade on NSE it safe
to say that NSE won the second round that is trading on derivatives.

BSE
OR NSE

Where
will compare the exchanges based on the variety of stocks as you know BSE has
over 5000 stocks and NSE has fewer than 2000 because NSE is more stringent
about its listing and reporting norms BSE is a little too eager to get even the
low-quality stocks what does it mean for as well for intraday or swing trader
every stock that is spreadable is listed on both the exchanges BSE and NSE. So,
it doesn’t really matter however it’s different for investors. Investors
especially those interested in micro caps have much more choices available on
BSE then NSE so from that standpoint BSE wins this round.

There
are some other considerations as well like the cost of trading on the exchanges
well there more or less similar and the difference is insignificant overall NSE
clearly win this battle because it has better liquidity in the cash market it
is better for retail traders special day traders and because it is only viable
option when it comes to derivatives trading so what does it mean for you know
if your intraday trader trade on NSE if you are future and option trader you
just trade on NSE. If you are investor and investing in stocks go on both
exchanges compare their prices and always do analysis.

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