Top Stock Exchanges in India

List of Stock Exchanges in India

The Indian stock market is a dynamic and integral part of the country’s financial ecosystem, offering investors diverse opportunities across equities, commodities, and derivatives. With a history dating back to the 19th century, Indian stock exchanges have evolved significantly, embracing digital advancements and regulatory improvements to enhance market transparency and accessibility. While the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) dominate the landscape, several other exchanges also play a crucial role in facilitating trade. This article provides an in-depth look at the key stock exchanges in India, their functions, and how they cater to different segments of investors.

What Are Stock Exchanges?

A stock exchange is essentially a marketplace where buyers and sellers trade financial assets like stocks, commodities, and currencies within set business hours. 

According to SEBI's records (as of January 2020), India has around nine stock exchanges, but only a few remain active and permanent. 

Let’s break them down.

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Bombay Stock Exchange (BSE)

Asia’s oldest stock exchange, the BSE, was founded in 1875 and originally called The Native Share & Stock Brokers Association. It operates from Dalal Street, Mumbai, and has a rich history dating back to the 1850s when a group of 22 brokers would trade under banyan trees near Mumbai’s Town Hall. By 1874, they moved to Dalal Street, and a year later, BSE was officially established.

A major milestone came in 1986 with the launch of Sensex, India’s first equity index, which tracks the top 30 traded companies across industries. Other key indices include:

• BSE 100, BSE 200, BSE 500 (broader market coverage)
• BSE MIDCAP, BSE SMLCAP (mid- and small-cap stocks)
• BSE Auto, BSE Pharma, BSE FMCG, BSE Metal (sector-based indices)

      
Globally, the BSE ranks among the top 10 stock exchanges by market capitalization and is publicly listed on the NSE. Apart from equities, the BSE offers derivatives trading in futures, options, and commodities like gold, silver, crude oil, steel, cotton, and almonds.

National Stock Exchange (NSE)

NSE may be younger than the BSE, but it has grown to become India’s largest stock exchange. Founded in 1992 and recognized by SEBI in 1993, it revolutionized trading by replacing the traditional paper-based settlement system with an electronic trading platform. This made investing faster, more transparent, and accessible to a broader audience.

A major highlight was the launch of the NIFTY 50 index in 1995-96, tracking the top 50 companies on the exchange. Other key indices include:

• Nifty Next 50
• Nifty 500
• Nifty Midcap 150
• Nifty Smallcap 250

NSE also played a crucial role in the creation of National Securities Depository Limited (NSDL), which allows investors to hold and transfer stocks electronically. Today, NSE offers trading in equities, derivatives, commodities, and currencies.

Multi-Commodity Exchange (MCX)

MCX, launched in 2003, is India’s largest commodity exchange, specializing in both agricultural and non-agricultural products.

Agri commodities: Cotton, crude palm oil, rubber, cardamom
Non-agri commodities: Base metals (lead, aluminium, nickel, zinc, copper), bullion (gold, silver), and energy (crude oil, natural gas)

MCX is also India’s first listed commodity exchange (traded on BSE & NSE). It offers futures and options contracts across various commodities and has introduced index futures like:

• MCX BULLDEX (bullion index)
• MCX METLDEX (metal index)
• MCX ENRGDEX (energy index)

While commodity trading is growing, it still lags behind the equities market in terms of volume.

National Commodity and Derivatives Exchange (NCDEX)

Like MCX, NCDEX focuses on commodity trading but has a stronger emphasis on agricultural products like:

• Cereals & Pulses: Chana, barley, moong
• Oil & Oilseeds: Castor seeds, soybean, mustard seed, crude palm oil
• Fibres: Kapas, cotton
• Spices: Turmeric, coriander

To enhance agricultural trading, NCDEX recently introduced AGRIDEX, an index-based trading product.

India International Exchange (India INX)

Launched in January 2017, India INX is India’s first international stock exchange and a subsidiary of the BSE. It operates from GIFT City, Gujarat, and boasts one of the fastest trading platforms in the world, with a 4-microsecond turnaround time.

Trading hours:

• Session 1: 04:30 AM – 05:00 PM
• Session 2: 05:00 PM – 02:30 AM

India INX facilitates global securities trading and offers derivatives across equities, currencies, commodities, and debt instruments (like masala bonds and foreign currency bonds). Plans are in motion to allow trading in global stocks, including U.S. and European companies.

NSE IFSC

Established in November 2016, NSE IFSC is a subsidiary of NSE, also operating from GIFT City, Gujarat. It provides trading in equities, derivatives, commodities, and currencies with extended trading hours:

• Session 1: 08:00 AM – 05:00 PM
• Session 2: 05:30 PM – 11:30 PM

Indian Commodity Exchange (ICEX)

ICEX is a commodity derivatives exchange and the only platform in India offering diamond contract trading. Though incorporated in 2009, it faced suspension in 2014, resumed operations in 2017, and has since expanded to include spices, oilseeds, and cereals.

Calcutta Stock Exchange (CSE)

CSE, one of India’s oldest exchanges, was formally incorporated in 1908 and had a benchmark index called CSE-40. However, due to regulatory issues, its trading was suspended for nearly a decade. Unlike other regional exchanges that shut down, CSE continues to fight for its survival.

Metropolitan Stock Exchange (MSE)

Recognized by the Ministry of Corporate Affairs in 2012, MSE offers futures, options, currency derivatives, and debt instruments. However, its trading volume remains relatively low.

Which Stock Exchange Should You Choose?

India’s stock exchanges have grown to accommodate a wide range of financial instruments, catering to both retail and institutional investors. Whether you're looking to trade equities on NSE or BSE, invest in commodities via MCX or NCDEX, or explore international trading through India INX and NSE IFSC, understanding these platforms is essential for informed investment decisions. Each exchange has its strengths, making it important for investors to choose the one that aligns with their trading preferences and financial goals. As the market continues to evolve, staying updated on these exchanges can help investors navigate opportunities with confidence.