NSE stands for National Stock Exchange, it serves as a marketplace where people can buy and sell their stocks.
The world functions by buying and selling different products. A buyer cannot survive alone, and 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, if you want to buy vegetables, so 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.
- NSE Meaning
- Role of NSE in Indian Stock Market
- What are NSE Derivatives?
- Total Companies listed on NSE.
- Quick Summary
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 to 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 on 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 has been working since 1875 with the BSE or Bombay Stock Exchange. But a 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 a 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 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 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 tough nuts 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 Name||Sub-Sector|
|1||Reliance Industries Ltd||Oil & Gas – Refining & Marketing|
|2||Tata Consultancy Services Ltd||IT Services & Consulting|
|3||HDFC Bank Ltd||Private Banks|
|4||Infosys Ltd||IT Services & Consulting|
|5||ICICI Bank Ltd||Private Banks|
|6||Hindustan Unilever Ltd||FMCG – Household Products|
|7||State Bank of India||Public Banks|
|8||Bharti Airtel Ltd||Telecom Services|
|9||Housing Development Finance Corporation Ltd||Home Financing|
|10||Adani Enterprises Ltd||Commodities Trading|
|11||ITC Ltd||FMCG – Tobacco|
|12||Bajaj Finance Ltd||Consumer Finance|
|13||Kotak Mahindra Bank Ltd||Private Banks|
|14||HCL Technologies Ltd||IT Services & Consulting|
|15||Asian Paints Ltd||Paints|
|16||Larsen & Toubro Ltd||Construction & Engineering|
|17||Maruti Suzuki India Ltd||Four Wheelers|
|18||Bajaj Finserv Ltd||Insurance|
|19||Axis Bank Ltd||Private Banks|
|20||Sun Pharmaceutical Industries Ltd||Pharmaceuticals|
|21||Titan Company Ltd||Precious Metals, Jewellery & Watches|
|22||Wipro Ltd||IT Services & Consulting|
|23||UltraTech Cement Ltd||Cement|
|24||Nestle India Ltd||FMCG – Foods|
|25||Adani Ports and Special Economic Zone Ltd||Ports|
|26||Oil and Natural Gas Corporation Ltd||Oil & Gas – Exploration & Production|
|27||JSW Steel Ltd||Iron & Steel|
|28||NTPC Ltd||Power Generation|
|29||Power Grid Corporation of India Ltd||Power Transmission & Distribution|
|30||Tata Motors Ltd||Four Wheelers|
|31||Mahindra and Mahindra Ltd||Four Wheelers|
|32||Coal India Ltd||Mining – Coal|
|33||Tata Steel Ltd||Iron & Steel|
|34||SBI Life Insurance Company Ltd||Insurance|
|35||HDFC Life Insurance Company Ltd||Insurance|
|36||Grasim Industries Ltd||Cement|
|37||Bajaj Auto Ltd||Two Wheelers|
|38||Tech Mahindra Ltd||IT Services & Consulting|
|39||Britannia Industries Ltd||FMCG – Foods|
|40||Hindalco Industries Ltd||Metals – Aluminium|
|41||Eicher Motors Ltd||Trucks & Buses|
|43||Indusind Bank Ltd||Private Banks|
|44||Divi’s Laboratories Ltd||Labs & Life Sciences Services|
|45||Dr Reddy’s Laboratories Ltd||Pharmaceuticals|
|46||Tata Consumer Products Ltd||Tea & Coffee|
|47||Bharat Petroleum Corporation Ltd||Oil & Gas – Refining & Marketing|
|48||Apollo Hospitals Enterprise Ltd||Hospitals & Diagnostic Centres|
|49||UPL Ltd||Fertilizers & Agro Chemicals|
|50||Hero MotoCorp Ltd||Two Wheelers|
The companies mentioned above are arranged according to the market cap. The table also includes the closing price of the shares of the companies.
We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, and hence we bring you the important topics and areas that you should know:
|What is Sensex?|
|What is Nifty?|
|What is SEBI|
|NSE vs BSE|
|Sensex vs Nifty|
|What Is Currency Market in India|
|Shares below 100|
- 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.
Click the link to access the web story now:What is NSE Full form