What do the different groups on NSE and BSE mean?

Both of the stock exchanges categorize stocks into groups, so investors can use the groups to help identify the type of company they are purchasing shares in.
 

For example, on the NSE, stocks are categorized into indices such as Nifty 50 (large caps), Nifty Midcap, Nifty Small cap, etc.

For the BSE, stocks are divided into groups, such as: 

● Group A: The stocks that have the most active trading, most liquid.

● Group B: Stocks compatible with group A, but not as liquid.

● Group T: Stocks in the trade-to-trade segment, no square off available on the same day.

● Group Z: Companies in failure to comply with exchange rules.
 

These classes inform you about the trading behaviours, the risk factor associated with the stock, and if it is in compliance with regulatory standards before making share purchases.