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What is NSE?

National Stock Exchange, NSE is one of the major stock exchanges not only across Indian but all over the world. This exchange is located in Mumbai and it is the 9th largest exchange when it comes to market capitalization. It is also the largest exchange of India in daily turnover and no. of contract trades for both equity and derivative markets. Total number of companies listed are around 2000 in equities segment and around 200 in derivative segments. For the companies to trade in derivatives, they need to meet the guidelines of NSE in all aspects including turnover and volumes consistently.

National Stock Exchange has its index as Nifty which is derived after two words ‘NSE‘ and ‘FIFTY’ – N from NSE and IFTY from FIFTY combining which gives us a word NIFTY. The reason why fifty is used as the second word is that, as all other countries, this exchange too spotted 50 top performance large cap sector stocks which are fundamentally good with strong earnings ratio. These fifty stocks are grouped as Nifty50 which is nothing but National Stock Exchange Fifty.

There is misbelief that this exhange is owned by government or SEBI. But the fact remains that this is owned by renowned financial institutions, banks and insurance companies of India. Interestingly, a very less foreign institutional investors, FII too owns stake in NSE. National Stock Exchange originated in the year 1992 as a tax paying company initially which later turned into stock exchange. It is the first stock exchange in India to introduce derivatives segment in the year 2000.

Major Indices of NSE:

CNX 100
S&P CNX 500

Posted By: Mohan Das (Analyst)                 Posted on: 2016-04-21 16:02:28                 Updated on: 2016-04-21 16:02:28