The Main Stock Exchanges in India: A Comprehensive Overview

India is the world’s 4th largest economy (~$4.1T), and is also the world’s 4th largest stock market (~$5.3T) by market capitalisation. The Indian stock market is only lagged by the US (~$70.3T), China (~$16.2T), and Japan (~$6.3T) as of early January 2026.

India’s vibrant capital market (Equities + Commodities + FX) is primarily regulated by the Securities and Exchange Board of India (SEBI). India’s securities market includes multiple SEBI-regulated and recognised exchanges for equities, stock derivatives, commodity derivatives, FX, debt, and also global/US stocks.

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India has two main stock exchanges—NSE and BSE. The NSE is the prime stock exchange of India, controlling almost 93% of stock market volume. NSE has almost 99.9% share in equity and index futures like Nifty and Bank Nifty, which are among the most popular index futures in the world. NSE also has an almost 96.9% share in equity options.

If we consider both cash and derivatives, NSE accounts for over 90% of total trading volume in India, driven by its high liquidity, advanced electronic trading platform, and widespread investor preference. India’s #1 stock exchange, NSE, is also the largest derivative exchange by contract volume in the world.

India’s capital market ecosystem is supported by digitalisation, an affluent high middle class and HNIs, resilient domestic institutions (DIIs), reputed and reliable FIIs, a robust SEBI regulatory framework, and strong investor trust.

List of India’s Recognised & Active Stock and Commodity Exchanges

1) Bombay Stock Exchange (BSE) Ltd – Mumbai (Listed)

Asia’s and India’s oldest stock exchange, BSE, was established in 1875 during the British Raj in Mumbai’s Dalal Street as “The Native Share & Stock Brokers' Association” (NSSBA) by Premchand Roychand and other brokers.

Originally started informally in the 1850s near Mumbai Town Hall, native Indian brokers gathered under a banyan tree to trade shares, later moving to Dalal Street in 1874. The association was primarily run by Gujarati, Jain, and Parsi merchants as a distinct Indian entity, separate from British trading circles.

After India’s independence in 1947, BSE was formally recognised under the Securities Contracts Regulation Act in 1956. It introduced the S&P BSE Sensex in 1986, shifted to electronic trading in 1995, corporatised in 2005, and was listed in February 2017.

As of 2026, BSE has over 5,600 listed companies with a market capitalisation of around ₹0.5 trillion. It offers trading in equities, commodities, forex (INR pairs), derivatives, debt instruments, electronic gold receipts (EGRs), and mutual funds. It also operates an SME platform and supports ultra-low latency trading systems.

2) National Stock Exchange (NSE) of India Ltd – Mumbai (Unlisted)

NSE was incorporated in 1992 and began operations in 1994, introducing India’s first fully electronic, screen-based trading system. It lists around 2,670 companies across mainboard and SME segments, with a cumulative market capitalisation of about ₹0.5 trillion.

NSE’s flagship index, Nifty 50, includes India’s largest companies, including some loss-making startups. NSE is known for its technological edge, deep liquidity, and dominance across cash and derivative segments, effectively enjoying near-monopoly status in many areas.

Why Did NSE Outperform BSE?

Despite BSE listing more companies, NSE commands far greater market share due to superior technology, faster execution, and stronger institutional and retail participation. NSE’s early adoption of electronic trading in 1994 transformed Indian markets with transparency, speed, and nationwide access.

BSE’s slower transition from open outcry to electronic trading limited its competitiveness. NSE’s advanced infrastructure, co-location facilities, and real-time risk management systems make it the preferred platform for institutions and high-frequency traders.

3) Multi-Commodity Exchange (MCX) of India Ltd – Mumbai (Listed)

Launched in 2003, MCX is India’s leading non-agricultural commodity derivatives exchange. It offers futures and options in precious metals, energy commodities, and industrial metals, along with select agricultural products.

MCX operates extended trading hours and provides transparent price discovery and hedging tools for market participants nationwide.

4) National Commodity & Derivatives Exchange (NCDEX) – Mumbai (Unlisted)

Established in 2003, NCDEX is India’s leading agricultural commodity derivatives exchange. It facilitates futures and options trading in grains, pulses, oilseeds, spices, fibres, and other farm products.

NCDEX supports farmers, processors, and traders with risk management solutions and sectoral indices like AGRIDEX.

Agri Products Traded on NCDEX

• Cereals (wheat, maize, barley)
• Pulses (chana)
• Oilseeds (soybean, mustard, castor seed)
• Spices (jeera, coriander, turmeric)
• Fibres (cotton)
• Others such as guar seed, guar gum, cottonseed oilcake, mentha oil

5) International Exchanges in GIFT City (Gujarat)

GIFT City IFSC represents India’s global financial hub, offering access to Indian and international instruments under IFSCA regulation.

• India International Exchange (India INX): A BSE subsidiary offering extended-hour trading in derivatives, debt, commodities, and depository receipts.
• NSE International Exchange (NSE IX): An NSE subsidiary providing global products including GIFT Nifty futures.

GIFT City Trading Hours vs. CME Globex

GIFT City exchanges offer extended trading hours of nearly 21–22 hours per day, covering Asian, European, and most US market sessions.

• Session 1: 6:30 AM – 3:40 PM IST
• Break: ~55 minutes
• Session 2: 4:35 PM – 2:45/3:45 AM IST

This extended window enhances India’s integration with global markets and allows faster response to international developments.

Conclusion

India enjoys a scarcity premium in emerging markets due to political stability, policy consistency, macro resilience, and currency stability. The country’s six growth pillars—development, demand, demography, deregulation, digitalisation, and democracy—make it a unique destination for global investors.

India’s exchanges and capital market ecosystem play a critical role in economic growth by mobilising capital, enabling hedging, fostering inclusion, and integrating with global markets. With continued digital advancements and global linkages, India is firmly positioned as a premier emerging market destination.