The National Stock Exchange (NSE) began its operations in 1994, and in a very short period, became the largest exchange in the country. The NSE was the first contemporary, transparent, and completely automated trading platform, allowing for smooth electronic trading. It is one of India’s leading exchanges and ranks third in the world in the cash equities segment in terms of trading volume, as per statistics published by the World Federation of Exchange.
Trading volumes in the equity segment have increased significantly, with NSE’s average daily turnover rising from Rs. 17 crores in 1994-95 to over Rs. 30,923 crores in September 2021. As of September 2021, there are over 2,000 companies listed on NSE with a market capitalisation of over Rs, 2,58,06,565 crores. You can access a full list of companies listed in stock markets on the NSE through the official NSE website.
Following the Securities and Exchange Board of India’s (SEBI) regulatory framework and listing requirements and needed compliance, a stock is listed on NSE. This allows a company to raise capital and liquidity via the shares by becoming freely transferable through trading at the exchange dematerialised format.
Categorisation of NSE listed companies 2021
All NSE listed companies are viewed categorically from the investor’s perspective; broadly, stocks are divided into three categories based on the market capitalisation of the company –
Small-cap: This category includes stocks of companies with a market value of Rs. 5,000 crore or less. These stocks exhibit significant growth spurts, and because they are small capitalisation stocks, they have a higher degree of volatility. Small-cap stocks are appealing to investors because they have large price fluctuations and may be traded with a smaller amount of cash. These can be quite useful for a rookie trader to evaluate their approach with a reduced level of risk exposure.
Medium-cap: This category of stocks includes companies that have a market capitalisation of more than Rs. 5,000 but less than Rs. 20,000 crore. These stocks are of known companies in their individual sectors. With proper analysis and identification of growth potential, these stocks can be held for a longer-term. These stocks have decent financials and are backed by a track record of accomplishments.
Large-cap: These are the companies that have a market cap of Rs. 20,000 crore or more and are well-known companies of the country with deep-rooted customer trust. These are the sector giants, so they do not possess outstanding growth prospects, but they are companies that will pay you dividends. These are the stocks where you have the advantages of capital safety and long-term capital investment. These are the stocks, which everyone should consider having in their portfolio.
These stocks also form the very well-known stocks to invest of the market. They are also known as blue-chip stocks, deriving their name from blue chips of poker that are the most valuable chips.
Benefits to all NSE listed companies
Trade system: NSE stocks have a trading system of an international level comprising all the world’s major facilities.
Largest exchange: Just looking at the trading volume, you can understand that the NSE is the largest exchange of the country and a prominent player compared to the world’s exchanges.
Reach: NSE, with its latest technology, provides access all over the country. With the advent of digital technology and handheld devices, the reach is ever increasing.
Service: NSE provides world-class services in trade settlement, investor’s service, and data provision.
Listing: The clarity of listing rules and minimal listing fee make the listing experience seamless for a properly functioning business unit.
NSE is increasing its reach every day; with the addition of NSE international in GIFT city, enabling investors to access stocks as well, it will be adding a broader horizon of services. NSE has a high-functioning trade system and world-class post-trade management service. Trading on NSE is a unique experience.