How NSE-BSE siblings dance to different beats

NSE and BSE represent India’s leading stock exchanges, each playing a pivotal role in transforming the nation’s financial market landscape. While comparable indices from both exchanges target identical market segments (such as the Nifty 50 and Sensex 50), they differ in weightage limits, corporate action methodologies, evaluation standards for market capitalisation and liquidity benchmarks. These procedural variations result in divergent performance trajectories, risk profiles, and index-tracking patterns that ultimately impact diversification strategies, return expectations, and benchmarking effectiveness. Here is a performance comparison of the well-known NSE and BSE index siblings