“There has been an increase in rising demand and higher trading volumes in NSE stocks over the weekend,” said Sandip Ginodia, managing director of Altius Investech, which trades in unlisted stocks.
NSE shares have been under pressure of late and have largely remained below ₹2,000 since September due to the delay in IPO approvals and pressure on earnings following Sebi’s stringent measures in the equity derivatives market. “NSE shares had risen to around ₹2,400 last year before correcting to nearly ₹1,800 following the announcement of Q2 results and the regulator’s increasing derivative restrictions, which increased the minimum contract size,” said Hitesh Dharawat, owner of Dharawat Securities.
In the September quarter, NSE’s consolidated profit after tax fell 33% and consolidated revenue from operations fell 18% from the same period a year ago. Dharawat said the latest uptick could be short-lived.
“With expectations of a dull third quarter, we believe current price levels may not be sustainable,” he said. “The fair value of the shares is in the range of ₹1,500 to ₹1,800, reflecting the recent muted growth in the capital markets segment and increased hype or frenzy surrounding the shares.”
After Sebi banned several weekly derivatives contracts from the exchanges in November 2024, both trading volumes and revenues at the exchange level have taken a hit. Ginodia is optimistic about the stock market’s prospects after the listing. “NSE is currently trading at a discount to BSE and will list on the BSE. Given the possibility of higher free float and possible inclusion in the Sensex through listing, the stock could see strong buying from passive funds post-listing. This makes NSE an attractive investment opportunity,” he said.
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