National Stock Exchange, established in 1992, launched and popularised electronic screen based trading in India. Ever since then Bombay Stock Exchange – Asia’s oldest stock exchange, has been ceding space in equity markets to NSE. This is despite the fact that BSE has almost thrice the number of companies listed on its platform as compared to NSE (as on Apr 2020, BSE had 5542 companies listed while NSE had 1961 companies listed in equity cash platform).
Graph depicting annual trading turnover on the two exchanges since 1997:
In FY 2020, NSE witnessed an increase in total equity turnover of ~13% while BSE witnessed a decline of almost 15% thereby further increasing NSE’s market share.
The trend has continued in recent times as well. Infact in April of this year, for the first time ever, market share of BSE in terms of monthly turnover dipped below 5%.
Monthly market share in equity segment basis trading turnover:
In equity derivatives segment also, a similar story has played as NSE has captured almost 100% of the market share.