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NSE Lists on BSE: A New Era for Indian Exchanges
24 Sep
Summary
- NSE makes its long-awaited market debut on BSE and MSEI today.
- Macquarie initiates coverage with 'Outperform' and a 22% upside target.
- NSE IPO shares traded with a 2% premium, signaling a muted listing.
National Stock Exchange (NSE) shares are set to list on the BSE and Metropolitan Stock Exchange of India (MSEI) today, concluding a long process for India's second publicly traded stock exchange. The IPO, an offer for sale, aimed to raise Rs 22,562 crore from existing shareholders.
Ahead of its listing, NSE's unlisted shares showed a modest 2% premium over the IPO price, suggesting a subdued market debut. However, analysts express optimism for the longer term.
Macquarie initiated coverage on BSE shares with an 'Outperform' rating and a Rs 4,000 target price, implying more than 22% potential upside from its recent trading level. The brokerage sees opportunities in BSE's cash equities, F&O, and non-transaction revenue growth.
BSE shares have experienced volatility, with recent gains driven by the anticipation of NSE's listing. The stock has seen a 25% increase year-to-date, with significant multi-bagger returns over three and five years.
Conversely, Nuvama downgraded BSE to 'Hold' with a lowered target price, citing headwinds from the new Closing Auction Session (CAS), confusion among traders, and RBI's bank guarantee norms. Jefferies also maintains an 'Underperform' rating, highlighting risks from domestic proprietary traders, STT hikes, and regulatory changes.
