I am interested in studying the volatility and seasonality in the Indian stock markets across sectors. Which stock exchange provides more robust coverage of sectorial indices Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE)?
Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India provide robust coverage of sectorial indices, but the NSE is generally considered to have a more extensive and diversified set of sector-specific indices. The NSE's Nifty indices cover a wide range of sectors, including banking, IT, pharmaceuticals, and more, offering investors a comprehensive view of the market. While the BSE also offers sectoral indices, the NSE's dominance in terms of trading volumes and market share has led to its indices being more widely followed and considered more representative of the overall market conditions. Investors often look to both exchanges for a holistic understanding of sectoral performance, but the NSE tends to be favoured for its broader and more diverse coverage.
The choice to use depends on the user's specific needs and preferences, because both BSE and NSE are leading stock exchanges in India, and both provide data on sectoral indices.
2. The NSE is known for its advanced and efficient technology infrastructure. It was the first exchange in India to implement an electronic trading system.
However, this study finds that the volatility rate in BSE is greater than that of NSE.