The bourse advanced to an all-time peak of ₹1,994.50 after Nuvama projected an upside potential of approximately 14% based on a 40 times multiple of estimated September 2028 earnings. The brokerage underscored the company's vast competitive moat, noting it commands about 93% of the cash market and nearly 100% of equity futures as of the first half of FY27. Furthermore, substantial technology outlays and superior co-location facilities preserve its status as the favored venue for algorithmic trading. Steady financial expansion is anticipated, with projected compound annual growth rates of 11% for both revenue and earnings per share through FY29.
Key points
Existing regulatory headwinds like transaction tax hikes and expiry rationalisation are l…: Existing regulatory headwinds like transaction tax hikes and expiry rationalisation are largely factored into the current market price.
Superior technological investments and advanced co-location facilities solidify the excha…: Superior technological investments and advanced co-location facilities solidify the exchange's lead among algorithmic and institutional traders over BSE.
Future performance could face headwinds from stricter derivatives rules, lot size alterat…: Future performance could face headwinds from stricter derivatives rules, lot size alterations, or rapid competitive gains by BSE.
Sources checked by our analysis pipeline: 1
Shares of the National Stock Exchange of India (NSE) rose over 2% on Thursday, 12 November, touching a fresh all-time high of ₹1,994.50. The stock had previously recorded a 52-week high of ₹1,965 on 11 November, extending its recent upward momentum.
The rally comes as Nuvama Institutional Equities initiated coverage on NSE with a bullish outlook, describing the exchange as a ‘compelling buy’ and setting a target price of ₹2,220. This implies an upside potential of around 14% from the brokerage's reference price.
In its initiation report, Nuvama said NSE's entrenched liquidity advantage and strong network effects underpin its dominant position in India's capital markets. The brokerage believes the exchange's competitive moat, improving market participation and potential growth from emerging business segments could support its earnings trajectory.
Nuvama said NSE's three-decade-long presence has created a strong liquidity moat that continues to reinforce its market leadership. The exchange commanded around 93% of the cash market, nearly 100% of equity futures and approximately 68% of options premium turnover value (PTV) as of H1 FY27.
According to the brokerage, this market depth makes…
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