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 caps. 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/recognized 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; among these, 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 vibrant capital market ecosystem is supported by digitalization, an affluent high middle class & HNIs, resilient domestic institutions (DIIs), reputed and reliable FIIs, a robust SEBI regulatory framework, and investor trust.

List of India’s recognized & active stock & commodity exchanges

1) Bombay Stock Exchange (BSE) Ltd: Mumbai (listed)

Asia's & India’s oldest stock exchange, BSE, was established in 1875 in the ‘British Raj’ in Mumbai, Dalal Street, as "The Native Share & Stock Brokers' Association" –NSSBA-by Premchand Roychand and other brokers. Originally, it was informally started during the 1850s, near Mumbai Town Hall, where ‘native’ (Indian) stock brokers gathered under a banyan tree to trade shares-later moved to Dalal Street in 1874. The NSSBA was primarily run by Gujrati, Jain, and Parsi merchants as an explicit ‘native’ (Desi-Indian) association, distinct from British/European trading circles. As India was then in the midst of 200 years of British Colonial rule, as a ‘British State’, the Indian economy was also heavily influenced by British policies & currencies (GBP), which was the then Global Reserve & trade currency (GRTC). Although the NSSBA had no direct British funding or control, the British influence was indirect- the joint-stock company model, banking systems, and trade infrastructure came via the British colonial rule.

Fast forward, after India’s independence (1947), the BSE was formally recognized under India's Securities Contracts Regulation Act in 1956. Subsequently, BSE introduced India’s iconic ‘SENSEX’ index 30 years later in 1986 (coincided with Harshad Mehta scam era-Badla trading)-then shifted to electronic trading in 1995 (coincided with India’s economic liberalization) and eventually corporatized in 2005 and listed in Feb ’2017.

Now, in 2026, the BSE has over 5600 listed companies with an INR 0.5T market cap-remains as an iconic image for India’s capital market ecosystem. BSE now provides modern & sophisticated electronic/digital trading facilities in equities, commodities, forex (INR pairs like USDINR), derivatives, debt instruments (like GSECS, various NCDs), electronics gold receipts (EGR), and also mutual funds (MFs). BSE’s benchmark index-S&P BSE Sensex-30, has 30 constituents.-mostly in truly blue chip categories. BSE now has a sophisticated trading system that includes an ultra-low latency period; it also features an SME platform for SME (small & medium enterprises).

2) National Stock Exchange (NSE) of India Ltd: Mumbai (till not listed)

India’s largest stock exchange, NSE, was incorporated in 1992 (after the Harshad Mehta scam broke out) and has been operational since 1994; based in Mumbai, NSE introduced India’s modern, fully electronic screen-based trading system. Like BSE, India’s premier stock exchange, NSE also offers platforms for equities, equity derivatives, currency derivatives, debt securities, EGRs, and commodities. NSE’s flagship (benchmark) Nifty 50 index has 50/51 major companies, including loss-making startups. As of early 2026, NSE lists around 2,670 companies, including mainboard and SME segments, with a cumulative market capitalisation of around INR 0.5 trillion. NSE is synonymous with its tech edge and high trading volumes; it almost has a 99% market share (monopoly).

Why did NSE outperform BSE?

Although the BSE is the oldest in India, and lists over three times more companies than NSE, BSE captures a significantly smaller market share, often less than 10% in key segments like derivatives and cash equities. NSE’s superior technology, faster execution, and retail & institutional preference contribute to its market dominance. NSE is virtually enjoying a monopoly in the duopoly market and is a synonym of India’s capital market. The NSE revolutionized India’s financial markets by introducing a fully electronic, screen-based trading system in 1994, enabling faster order execution, increased transparency, and enhanced accessibility across the country. This technological leap attracted institutional investors, high-frequency traders, and retail participants, driving high trading volumes. BSE, initially reliant on a traditional open outcry system, was slower to modernize.

Although BSE introduced its BOLT (BSE On-Line Trading) platform in 1995, it couldn’t match NSE’s early-mover advantage or technological robustness. NSE’s infrastructure supports seamless high-volume trading, with advanced features like co-location facilities and real-time risk management, making it the preferred platform for large investors (institutions and HNIs). BSE struggles with lower liquidity, particularly in small and mid-cap stocks. BSE’s trading volumes are often less than 10% of NSE’s, making it less attractive for institutional investors who prioritize liquidity-tight spreads & depth.

3) Multi-Commodity Exchange (MCX) of India Ltd: Mumbai (listed)

MCX is India’s leading (#1) commodity (non-agri) derivative exchange-launched in 2003, and focuses on non-agri commodities. MCX provides F&O (Futures & Options) in precious metals (Gold, Silver), energy (Crude oil, Natural Gas-NG), metals (copper, nickel, zinc, lead)-all the Indian version of US COMEX. MCX also offers selected agri products. MCX also introduced various commodity benchmark indices and tools for warehouse monitoring. Now, in 2026, MCX remains dominant in its non-agri segment, regulated by SEBI. MCX trading platform ensures transparent price discovery and hedging for commodity market participants nationwide. MCX usually runs almost 14.30/14.45 hours in a typical full trading day. Even in most of the holidays in India, it operates in the evening session (17:00 to 23:30/45).

4) National Commodity & Derivatives Exchange (NCDEX): Mumbai (not listed)

NCDEX, India’s leading (#1) agri-commodity derivative exchange, was established in 2003. NCDEX offers trading in agri futures & options. NCDEX offers futures trading in grains, pulses, spices, oilseeds, and other farm products. It launched indices like AGRIDEX to reflect sectoral performance. NCDEX is focused on risk management for the agricultural ecosystem; NCDEX supports farmers, processors, and traders. Like MCX, it also operates under SEBI regulation.

Agri Products: NCDEX

• Cereals (e.g., wheat, barley, maize)
• Pulses (e.g., chana)
• Oilseeds (e.g., soybean, castor seed, mustard)
• Spices (e.g., coriander/dhaniya, jeera, turmeric)
• Fibers (e.g., cotton)
• Others like guar seed, guar gum, cottonseed oilcake, and mentha oil

5) International Exchanges in GIFT City (Gujarat)

India’s answer to SGX (Singapore)-situated in the Gujarat International Finance Tec-City (GIFT City) IFSC, these platforms enable global access to Indian and international instruments, almost 16 under IFSCA regulation.

• India International Exchange (India INX), a BSE subsidiary launched in 2017, offers extended-hour trading in derivatives, debt securities, commodities, and depository receipts.
• NSE International Exchange (NSE IX), an NSE subsidiary, provides similar products, including the prominent GIFT Nifty futures (India’s alternative to SGX Nifty)
• NSE-IX-Official Name: NSE IFSC Limited (full form: NSE International Financial Services Centre Limited).

GIFT City Trading Hours vs. CME Globex

GIFT City (via exchanges like NSE IFSC/NSE IX and India INX) offers extended trading hours for products like GIFT Nifty (USD-denominated Nifty futures/options), Sensex derivatives, global stocks, and bonds, but it is not fully aligned with CME Globex' almost ~23/5 model.

GIFT City (Key Products like GIFT Nifty)

• Trading Hours (IST): Two sessions, totaling ~21/22 hours/day (Monday–Friday):
• Session 1: 6:30 AM – 3:40 PM
• Break: ~55 minutes
• Session 2: 4:35 PM – 2:45/3:45 AM (next day)
• This covers Asian, European, and most US hours, allowing reaction to global events.

GIFT City's extended hours represent a major step for India (vs. domestic 6.5-hour sessions), enabling better global/US integration, as on most days, triggers come from the US.

Conclusions

India has long enjoyed a scarcity premium in the EM space due to political, policy, macro, and currency stability. India’s appeal of 6D (development, demand, demography, deregulation, digitalization, and democracy), coupled with good relations with most of the major countries in the world, has made it a unique destination for FPIs in the EM space. India's exchanges and capital market ecosystem drive economic growth by mobilizing capital, enabling hedging, and fostering inclusion. With digital advancements and global linkages, they solidify India's position as a premier emerging market (EM) destination.