The NSE (National Stock Exchange) is India’s largest stock exchange by trading volume, established in 1994, and is home to the Nifty 50 index—India’s benchmark for equity market health.
History and Significance
NSE was created to modernize Indian equity trading. Before NSE, trading was chaotic—manual order books, settlement delays, high fraud risk. NSE introduced electronic trading, real-time clearance, and transparent pricing.
In less than 30 years, NSE became Asia’s third-largest exchange by market cap (after Tokyo and Hong Kong) and the largest by trading volume.
Today, NSE processes over ₹1.5 trillion in daily trading volume and hosts 2,000+ listed companies.
Trading Hours
| Session | Time (IST) |
|---|---|
| Pre-market | 9:00-9:15 AM |
| Main session | 9:15 AM-3:30 PM |
| Post-market | 3:40-4:00 PM |
Pre-market orders are placed but not executed. At 9:15 AM, orders match and trading begins.
Most retail traders ignore pre-market and post-market sessions. The main session is where 99% of volume happens.
The Nifty 50
The Nifty 50 is NSE’s flagship index—the equivalent of India’s S&P 500.
Top 10 Nifty stocks (by weight):
- Reliance Industries
- TCS (Tata Consultancy Services)
- HDFC Bank
- Infosys
- Bharati Airtel
- ICICI Bank
- Hindustan Unilever
- ITC
- Bajaj Finance
- Maruti Suzuki
These 10 stocks make up ~45% of the Nifty’s weightage. The Nifty is heavily concentrated in financials (banks), IT, and energy.
Other NSE Indices
| Index | Description |
|---|---|
| Nifty 50 | 50 largest, most liquid stocks |
| Nifty Next 50 | Stocks ranked 51-100 by market cap |
| Nifty 100 | Top 100 stocks |
| Nifty 500 | Top 500 stocks |
| Nifty Midcap 50 | 50 mid-cap stocks |
| Nifty Smallcap 50 | 50 small-cap stocks |
Nifty 50 is the most traded and most watched.
Why Trade on NSE
Liquidity: The most liquid stocks on NSE (Reliance, TCS, HDFC Bank) can be traded in millions of shares with minimal slippage.
Regulation: NSE is heavily regulated by SEBI (Securities and Exchange Board of India). Fraud and market manipulation are rare.
Technology: NSE’s systems are fast and reliable. Orders execute in milliseconds. Settlement is T+1 (next trading day).
Cost: Brokerage fees are competitive, often ₹20-₹100 per trade for retail traders.
Information: Real-time data is freely available through NSE’s website or broker platforms.
Settlement
NSE uses T+1 settlement:
- T-day: You buy shares
- T+1 (next trading day): Shares arrive in your demat account; cash is debited from your bank account
Settlement is guaranteed by NSE’s clearing corporation (NSCCL), which indemnifies both parties.
Trading on NSE
To trade on NSE, you need:
- A demat account (holds securities)
- A trading account (executes orders)
- Linked bank account (funds trades)
- PAN card (tax identification)
- KYC completed (identity verification)
Most brokers (Zerodha, Angel One, Shoonya) open all accounts in under an hour.
NSE vs. BSE
| Metric | NSE | BSE |
|---|---|---|
| Founded | 1994 | 1875 |
| Daily volume | ₹1.5+ trillion | ₹200-300 billion |
| Listed companies | 2,000+ | 5,000+ |
| Benchmark index | Nifty 50 | Sensex |
| Most traders | Yes | Older, less active |
Active traders almost always use NSE. BSE is used mainly for specific stocks (like NTPC, Power Grid) that are more liquid there.
Circuit Limits on NSE
NSE uses circuit breakers to prevent extreme price moves:
- 5% circuit: Most A-group stocks
- 10% circuit: Some B-group stocks
- 20% circuit: New listings, speculative stocks
If a stock rises 5% (upper circuit), buying is restricted. If it falls 5% (lower circuit), selling is restricted.
Margin Trading on NSE
NSE allows intraday leveraged trading through the collateral margin system:
- Use your demat holdings as collateral
- Borrow up to 2-4x leverage depending on the stock
- Must close positions by market close or square off
This is extremely risky for retail traders. Most beginners who use margin lose money.
Key NSE Brokers
| Broker | Brokerage | Platform |
|---|---|---|
| Zerodha | ₹20 per trade | Kite |
| Angel One | ₹20 per trade | Angel Broking |
| Shoonya | ₹20 per trade | Shoonya |
| Motilal Oswal | ₹20-₹50 | Desktop/Mobile |
| 5paisa | ₹10-₹20 | Desktop |
Most brokers charge ₹20 per trade now. The difference is in platform quality and customer service.
How PipJournal Helps
PipJournal is built for forex traders, but many traders diversify into NSE equities. Log your NSE trades (entry price, quantity, strategy, exit price) in PipJournal and track your performance by stock. Over 100+ trades, you’ll see which NSE stocks fit your edge and which ones consistently lose money.
