Stock trading has become increasingly accessible in India with the digitalisation of markets and the availability of online platforms. If you are new to trading or investing, understanding how to buy and sell shares on the NSE (National Stock Exchange) is essential. Both NSE and BSE are the primary stock exchanges in India, and learning how to operate within these exchanges helps you manage your portfolio more confidently.
This article offers a step-by-step guide to help you understand the stock trading process on the NSE—from account opening to placing your first order and tracking your investments.
Introduction to NSE and BSE
The NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are India’s two largest and most widely used stock exchanges. Both are regulated by the Securities and Exchange Board of India (SEBI) and play a crucial role in providing liquidity, transparency, and ease of access to investors.
| Feature | NSE | BSE |
| Founded | 1992 | 1875 |
| Key Index | Nifty 50 | Sensex |
| Trading Platform | NEAT | BOLT |
| Settlement Cycle | T+1 | T+1 |
| Listing Companies | Over 1,900 | Over 5,000 |
Most retail investors today prefer the NSE for its advanced technology, faster order execution, and high trading volumes. However, stocks are often listed on both NSE and BSE, allowing investors to choose the exchange they wish to trade on.
What you need before buying or selling on NSE
To begin trading on the NSE, you need to complete the following steps:
1. Open your demat and trading account
A demat account stores your shares in electronic format, while a trading account allows you to place buy and sell orders. These accounts must be linked to your PAN and bank account. Ensure your KYC (Know Your Customer) documentation is complete before activating the account.
2. Fund your trading account
Once your trading account is active, transfer funds from your linked bank account into your trading wallet. This money will be used to buy shares on the exchange.
3. Access the trading platform
Most brokers provide a web-based or mobile trading app. Log in to your platform, select the stock listed on NSE, and begin analysing prices, charts, and market depth to decide your trade.
Step-by-step process to buy stocks on NSE
Here is a simplified guide to buying shares on the NSE:
- Login to your trading account using the credentials provided by your stockbroker.
- Search for the stock you want to purchase using the NSE symbol (e.g., RELIANCE, INFY, TCS).
- Select the exchange – NSE (as most stocks are also listed on BSE, you must choose where to trade).
- Choose your order type:
- Market Order: Buys at the current price
- Limit Order: Buys at a specified price
- Stop-loss Order: Automatically triggers if the price hits a certain level
- Market Order: Buys at the current price
- Enter the quantity of shares you wish to purchase.
- Review and place the order.
- Once executed, the shares will reflect in your demat account by the next day (T+1 settlement cycle).
Step-by-step process to sell stocks on NSE
To sell shares that are already in your demat account:
- Login to your trading account.
- Go to your holdings section and select the stock you wish to sell.
- Choose the NSE exchange for placing the sell order.
- Enter the quantity of shares you want to sell.
- Select the order type (Market, Limit, or Stop-loss).
- Confirm the sale by reviewing all details and placing the order.
- Proceeds from the sale are credited to your linked bank account, usually on the next working day.
Market timings on NSE
To buy or sell on the NSE, it is important to be aware of the exchange’s official trading hours:
| Session | Timings |
| Pre-open session | 9:00 AM – 9:15 AM |
| Regular trading | 9:15 AM – 3:30 PM |
| Closing session | 3:30 PM – 4:00 PM |
Orders placed outside these timings are either scheduled for the next session or rejected depending on the broker’s system.
Understanding price movements
Stock prices on NSE and BSE are driven by demand and supply. If more people are buying a stock, the price tends to rise. If more are selling, the price may drop. Prices also move based on company performance, global cues, macroeconomic data, and investor sentiment.
For example, news about bonus shares being issued by a listed company may increase buying interest. Similarly, demand for stable, interest-earning instruments like tax free bonds may rise in a falling interest rate environment.
Key terms to know while trading
To trade effectively on NSE, it helps to understand a few commonly used terms:
- LTP (Last Traded Price): The most recent price at which the stock was traded.
- Volume: Total number of shares traded during the day.
- Bid Price: The highest price a buyer is willing to pay.
- Ask Price: The lowest price a seller is willing to accept.
- Circuit Limits: Maximum price movement allowed for a stock in a day (set by the exchange).
Difference between NSE and BSE for retail investors
While both exchanges function similarly, here is a simple comparison to help you choose:
| Parameter | NSE | BSE |
| Technology platform | Faster execution (NEAT) | Slightly slower (BOLT) |
| Liquidity | Higher in most large-cap stocks | Lower for select stocks |
| Popularity | Widely used for derivatives | Known for wider stock listings |
Retail investors may choose NSE for better execution, especially if they are trading in large-cap or high-volume stocks.
Monitoring your stocks post-trade
After buying shares, monitor their performance regularly through your trading dashboard. You can also:
- Set alerts for price targets
- Track dividend announcements
- Check for bonus shares, stock splits, or rights issues
- Monitor news and SEBI disclosures related to your holdings
Understanding how to track stock activity helps you stay informed and manage your portfolio effectively.
Conclusion
Trading on the NSE is a straightforward process once you understand the steps involved. From opening your demat and trading account to placing buy or sell orders, the process is entirely digital and can be done through a trusted broker. Both NSE and BSE offer a secure environment for retail investors to participate in the capital market.
While the stock market presents investment opportunities, investors must conduct thorough research while also considering their risk tolerance. Official sources such as SEBI, NSE India, and BSE India offer updated information, corporate filings, and compliance announcements to help support your trading decisions.
Disclaimer: This is a sponsored article. The content has been provided or influenced by the sponsor and does not necessarily reflect the views or opinions of the publisher.
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