What is the difference between investing same stocks in NSE and BSE

#1
BSE and NSE are the two stock exchanges in inda and in my idea have a similar stocks also. Then what is the difference between investing in NSE and BSE for same stocks.

For example What is the difference between SBI stock in both NSE and BSE. A quick look at the SBI chart from NSE and BSE looks similar
 

DSM

Well-Known Member
#2
MutualGuru,

Generally on NSE you will find better liquidity and price for stocks.... that is a major difference.... and ofcourse, some small and mid cap stocks are listed either on BSE or NSE - not on both.....

BSE and NSE are the two stock exchanges in inda and in my idea have a similar stocks also. Then what is the difference between investing in NSE and BSE for same stocks.

For example What is the difference between SBI stock in both NSE and BSE. A quick look at the SBI chart from NSE and BSE looks similar
 
#3
NSE which refers to National Stock Exchange gives better trading volume and liquidity than BSE which is referred to Bombay Stock Exchange. This is the major difference of between them.
 

prst

Well-Known Member
#4
Some largecap stocks also, like hawkins, are listed only on bse.
 
#5
Yes, there is a difference between investing same stocks in NSE and BSE because the bid and ask prices in both the exchanges vary, if not too much than little.
Secondly, the trading volume in NSE is more in comparison to BSE.:)
 

mastermind007

Well-Known Member
#6
BSE and NSE are the two stock exchanges in inda and in my idea have a similar stocks also. Then what is the difference between investing in NSE and BSE for same stocks.

For example What is the difference between SBI stock in both NSE and BSE. A quick look at the SBI chart from NSE and BSE looks similar
Since you've used the word "investor", I assume that you are referring to someone who buys and holds good stocks for a long time.

From such investor's point of view, differences are not too relevant.

For traders with average quantities (1 to 10000), liquidity is also not a major issue. You are trading for a better price and if you do it right, you can sell at little higher price on BSE or buy at lower price.

BSE lists more stocks than NSE and has concepts of Groups in addition to Industry Sectors.
Only nuisance in BSE is its numeric scrip codes. As long as you manage to resolve that, you will be fine.
 

P136

New Member
#7
The basic difference between two of them is that they’re two different market places having their own market dynamics.

The level of liquidity varies in both of them. The 50 share stocks provide better liquidity and prices for the stock; lesser the stock is illiquid the greater could be the chances of price difference. Also, you can do arbitrage between nse and bse shares.

The other difference is the volume, which is 1/10th of NSE in BSE.
 
#8
hi,
Because both BSE and NSE are different exchanges.There is a huge difference in the volume traded in both the exchanges which is the main reason for the difference of price and other conditions prevailing to each of the stock exchange

The price of the stock in both the exchanges will be almost same.The maximum they would differ would be within 1%(worst case).
happy investing :)