Bombay Stock Exchange is the oldest stock exchange in Asia having life of over 133 years. BSE is the first stock exchange in india which obtained permanent recognition from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE has facilitated the growth of the Indian corporate sectors.NSE was promoted and incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. The overall objective of this study is to make comparisons between the two exchanges to appreciate the theoretical underpinnings and enable to formulate appropriate expectations regarding quality differences.Secondary data are used. Results of serial correlation and unit root tests showed that exchanges are independent and Volatility of Nifty is lesser than the Sensex.