How many companies are listed on BSE and NSE?

Actual Question:

How many companies are listed on BSE and NSE? I thought they were 30 and 50 respectively, but I just discovered there are many more.

Answer:

Dear Friend!

As on date more than 5500 companies are listed on the BSE, as per the information available on the website of the BSE.

NSE being a relatively new exchange, about 2000 companies are said to be listed.

Perhaps you had arrived at the numbers of 30 and 50 respectively based on the composition of the two popular indices, S&P BSE Sensex (comprising 30 scrips enjoying the top 30 market capitalisation) and NIFTY which comprises of the top 50 companies.

Kindly note that for a stock market to function effectively it is required that a sufficiently large number of companies are listed on the exchange. The numbers of 30 and fifty will not suffice. Only a fairly large number of listed companies can meet the wide range investing tastes and styles of market players like domestic institutional investors (DIIs), foreign institutional investors (FIIs), high net worth individuals (HNIs), retail investors and so on.

For your kind information, though popular, Sensex and NIFTY are not the only two indices. Following is the list of various indices of the Bombay Stock Exchange:

Related Articles:

• Index Definition
• Which Stocks Constitute the BSE Sensex?
• Index Funds of Top 10 Mutual Funds

To conclude a large number of companies are listed on India’s two popular exchanges, BSE and NSE, offering a wide choice for various types and categories of investors.

Thank you,

With Best Regards

Anand

Index Definition

Meaning/ Definition:

An Index is a reference number, derived from the prices of a basket of constituents like commodities, currencies and stocks. The individual members are given weights depending on their relative importance. The final result is brought down to a base number of 100 and launched for use on a particular date, which becomes the birthday for that index. From that day onwards the index undergoes changes on account of changes in the prices of the individual constituents.

An index serves as a sample or quick indicator based on which users can draw a meaningful conclusion about the overall population.

Index – Example:

The most popular stock index in India, the ‘BSE Sensex’ comprises of 30 stocks that have the highest market capitalisation. Published since January 1, 1986, the Sensex is regarded as the pulse of the domestic stock markets in India. The base value of the Sensex is taken as 100 on April 1, 1979, and its base year as 1978-79. 

What is Market Capitalisation?

Market Capitalisation is a word and tool used widely in stock market operations. It means the market value of all the shares of a listed company at any particular time.

Let us take the example of NMDC Ltd.

Market capitalisation is widely used in ranking the companies. The inclusion in the popular indices is purely based on the market capitalisation, which is considered an open and transparent method.