Shares of the National Stock Exchange pulled back on their second trading day following a relatively subdued debut, but brokerages remain optimistic about the exchange’s long-term growth potential amid ongoing market deepening.
NSE shares slipped on Friday, a day after the National Stock Exchange’s market debut, as investors moved from the first burst of enthusiasm to a more measured price discovery phase. The stock, which had risen more than 5% intraday on Thursday, fell as much as 1.5% on the BSE and was trading 0.68% lower at ₹1,805.55 at 10:39 am, below both the previous session’s intraday high and the listing price of ₹1,800. The broader Nifty 50 was little changed.
The pullback followed a debut that was solid rather than spectacular. NSE shares opened on the BSE at ₹1,800, a modest premium to the issue price of ₹1,785, and later climbed to an intraday high of ₹1,878 before easing back. Reports from market publications said the offering was oversubscribed 5.71 times and raised about ₹22,562 crore, putting the exchange’s market value at roughly ₹4.45 lakh crore on listing day.
Even so, brokerages have been quick to argue that the early volatility does little to alter the long-term case for the stock. Emkay Global Financial initiated coverage with a “Buy” rating and a target price of ₹2,050, saying India’s capital markets still have a long runway as wealth creation and financialisation deepen over the coming decades. The brokerage also said NSE’s dominant position, profitability and cash generation give it scope to weather regulatory and macroeconomic shifts while continuing to grow earnings.
Macquarie also began coverage with an “Outperform” rating, calling NSE “The Dominator” and assigning a target price of ₹1,965. Analysts cited its leadership in market share and its powerful franchise as the main reasons for optimism. Other market commentary noted that NSE’s valuation appeared more restrained than some investors expected, which may have helped support demand even as questions remained about the exchange’s dependence on derivatives activity.
That dependence is one of the main risks investors are weighing. According to market reports, options trading accounts for more than 60% of NSE’s revenue, leaving earnings exposed to any tightening of derivatives regulation or a slowdown in trading volumes. Still, supporters of the stock argue that the exchange’s scale, brand and central role in India’s capital markets make it a rare listed proxy for the country’s financial deepening story.
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