Nse Leads Amongst The Indian Stock Exchanges

The National Stock exchange is trotting ahead with measured steps and one of its major moves is to lower NSE trading cost in futures and options and cash segments by ten percent. This move is catapulting enough to make both the Bombay Stock Exchange and the new MCX stock exchange to re-examine their business models and re-work on it. This step of the NSE is surely going to prove extremely beneficial for share brokers, traders, and investors so much so that every share broker is looking forward to invest in the NSE share. It is very clear that NSE’s move to lower the transaction charges is definitely going to prove of great importance to retail investors. The transaction charges posed by Indian stock exchanges are by far the lowest amongst all the other exchanges of the world. But then as a matter of fact, the cost of trading costs higher due to other statutory charges like stamp duty and securities transaction tax and stamp duty.

While MCX-SX still waits for the regulatory approval to host equity trading, BSE too struggles hard to retain its 30 per cent market share in cash segment and meanwhile it’s only the NSE that rules as the market leader in Indian mutual funds segment, and cash and futures segments too. It owns about 70 per cent and 98 per cent market share in cash and futures segment respectively. The live stock market too has most of the stock market experts vouching for the success of NSE in the nearing future as its present is already lusty bright and the only competition that it might face would be from the upcoming MCX-SX. So with huge competition striding in the stock exchange world is likely to move a step beyond price attribution as the investors and traders shall witness a storming fight between BSE and MCX-SX on one side and NSE on the other trying to attain more liquidity on their respective platforms. This move can cost BSE market a great deal if it didn’t respond well in answer after all MCX-SX is nowhere in the league as of now.

By: Nirmal Soni

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Nirmal Kumar Soni is freelance market analyst and is writing reviews articles on stocks and shares, stock technical analysis, BSE Stocks, shares trading, equity shares, stocks market, online share trading and information on online free trading account.