What is NSE Full form? – How Did NSE Revolutionize the Stock Market Investments??

NSE

The world functions by buying and selling different products. A buyer cannot survive alone, neither does the seller. So they need a common platform to bridge the gap between them, and that bridge is called a Marketplace.

Take, for instance; you want to buy vegetables, you go to a vegetable marketplace. For groceries, you visit a departmental store. Similarly, there are marketplaces or exchanges for buying or selling shares, NSE being one of them.

Please keep reading to clear your doubts.

Content:

NSE Meaning / Full Form

NSE stands for National Stock Exchange, it serves as a marketplace where people can buy and sell their stocks. While a stockbroker helps you push buy and sell orders, stock exchanges in the background ensure that every buyer meets an appropriate seller.

NSE was established in 1992 as the first electronic stock exchange in the country.

Being the largest stock exchange in India in terms of equity trading, NSE was the first exchange to provide a fully automated screen-based electronic trading system. NSE also introduced trading through the internet in 2000, which meant anyone could trade and invest in the Stock Market if they had an internet connection irrespective of their location.

NSE has vast operations, and it includes exchange listings, trading services, clearing and settlement services, market data feeds, indices, etc.

There are 1,920 companies listed in the NSE stock exchange, with 1,793 companies being actively traded, which includes both Indian and Indian subsidiaries of Foreign Companies, divided into 13 different sectors.

NSE has its own stock market index NIFTY, to track the real-time performance of the top companies listed in the NSE. Click here to get complete information about NIFTY.

I hope NSE Meaning is clear to you now. In the next section of this article, you may read about the roles of NSE in the stock market. 

Role of NSE in Indian Stock Market

The Indian stock market was working since 1875 with the BSE or Bombay Stock Exchange. But few things were lacking that needed to be addressed, and so, the NSE was formed with the following objectives.

  • Provide a nationwide electronic trading platform for equities, debts, and other instruments.
  • To provide equal access to investors across the nation through the communication network.
  • To provide transparency with a fair and efficient security market to investors through the electronic trading platform.
  • Enable Short Settlement Period.
  • Meet the international standards of the security market.

You might be wondering if both NSE and BSE are the same. But they are quite different, go ahead and read this blog for a clear understanding of the differences between NSE and BSE.

What are NSE Derivatives?

Let’s understand what a derivative is in simple terms; Derivatives are financial contracts that derive their value from an underlying entity. Here underlying entities can be stocks, bonds, commodities, currencies, and market indices.

Types of derivatives

Derivatives contracts can be classified into two major categories:

Futures

Futures are contracts that allow you to buy or sell your assets at an agreed price on a specified date. Futures are traded on the stock exchange, and the parties involved are obliged to perform the contract. The value of the futures contract changes with the market every day until the contract expires.

Options

Options are pretty similar to futures contracts, but there’s a catch to it. In options, you have the right to buy or sell the underlying entity at a specific price or the strike price during the contract time. However, you are under no obligation to perform the contract, unlike futures.

So, futures and options are always a tough nut to crack. It’s ok if you didn’t understand the definitions above. But do not worry, as futures and options have been explained very beautifully in this blog, and you may read it here. 

Total Companies listed on NSE.

Since NSE’s establishment in 1992, there are 1600 companies listed on the National Stock Exchange, out of which investors and traders are actively trading in 1328 companies.

Mentioning all the companies listed in NSE would be a little clustered, so instead, we have curated below the Top 15 companies listed in the NSE. But you may find the complete list here.

SL No.Stock NameSectorMarket Cap (Rs Crores)Close Price (Rs)
1Reliance Industries LtdOil & Gas – Refining & Marketing17,40,335.322,615.65
2Tata Consultancy Services LtdIT Services & Consulting13,47,383.633,685.65
3HDFC Bank LtdPrivate Banks8,40,704.511,514.65
4Infosys LtdIT Services & Consulting7,58,847.651,814.60
5ICICI Bank LtdPrivate Banks5,19,893.39754.30
6Hindustan Unilever LtdFMCG – Household Products5,08,388.312,183.05
7State Bank of IndiaPublic Banks4,59,345.89516.10
8Housing Development Finance Corporation LtdHome Financing4,46,273.962,458.25
9Bajaj Finance LtdConsumer Finance4,42,054.307,366.60
10Bharti Airtel LtdTelecom Services4,38,944.68762.10
11Kotak Mahindra Bank LtdPrivate Banks3,50,908.181,784.50
12Adani Green Energy LtdRenewable Energy3,38,598.182,321.85
13HCL Technologies LtdIT Services & Consulting3,18,237.081,165.35
14Wipro LtdIT Services & Consulting3,17,255.69583.65
15ITC LtdFMCG – Tobacco3,16,120.16267.80

The companies mentioned above are arranged according to the market cap. The table also includes the closing price of the shares of the companies. 

Quick Summary

  • NSE stands for National Stock Exchange, it serves as a marketplace where buyers and sellers can make transactions of their holdings. 
  • NSE was established in 1992 as the first electronic stock exchange in the country.
  • NSE derivatives are financial contracts that drive their value from their underlying entity (stocks, bonds, commodities, currencies, and market indices).
  • There are a total of 1600 companies listed on the National Stock Exchange, out of which investors and traders are actively trading in 1328 companies.

This article was an effort to explain the basic idea about the NSE stock exchange and what NSE means in the share market!

I hope the article was clear to understand; you may also refer to our other educational blogs on the stock market by clicking here.

Want to start investing in 15 minutes?? Click here to open your free account today with aliceblue and enjoy the lowest brokerage in India.

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About Author

Vikas Yadav

Vikas Yadav is a professional writer who also happens to be an engineer. He's been creating content for quite some time now, but it was his fascination and zeal for the stock market that steered him in the right direction. He is eager to spread knowledge about the "power of investment" through his collaboration with Alice Blue by creating high-quality educational content for the public at large. If you want to comprehend difficult subjects in simple terms, he's your man.

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