NSE's share price declined a day after listing on Friday, reversing gains seen on debut day as the stock fell below the intraday high seen in the previous session. The exchange's stock saw over a 5 per cent rise on listing day in intraday deals. NSE shares fell as much as 1.5 per cent on BSE today.
As of 10:39 AM, the company’s share price was trading 0.68 per cent lower at ₹1,805.55 apiece; meanwhile, Nifty 50 was trading 0.03 per cent higher at 23,071.75. The company’s stock hit an intraday low of ₹1,790 and slipped below the listing price of ₹1,800.
The shares of National Stock Exchange listed on BSE at a premium of 0.8 per cent, near the IPO price at ₹1,800, but the listed shares quickly gained to hit an intraday high of 5.21 per cent to Rs 1,878 per shareBrokerage firm Emkay, among others, initiated coverage on NSE with a ‘Buy’ rating and an estimated target price of ₹2,050.
The brokerage noted that India’s capital market development and growth story has a long runway as wealth creation and financialisation gain momentum in India’s journey of per capita GDP from $3k to $10k over the coming decadesIt added that NSE has demonstrated its resilient leadership position over decades across the business segments of capital markets, and the business model has enough levers to adjust amid changing regulatory and macroeconomic landscapes and deliver profitable growth.
Emkay also highlighted NSE’s strong profitability and cash generation by MIIs, such as stock exchanges, which enable them to globally command higher valuation multiples versus other capital market players that are more fragmented and susceptible to competition.“We forecast NSE to deliver a 13 per cent EPS compound annual growth rate over FY27-29E, on the back of a strong 19 per cent compound annual growth rate over FY22-26 as regulatory changes drive consolidation in market activities.
Given its strong brand, dominant leadership position, profitability, and cash generation, we see a strong case for NSE shares to be part of every India-focused equity portfolio,” Emkay said. Earlier on Thursday, domestic and foreign brokerages started coverage on the NSE stock that listed on Thursday.
Macquarie initiated coverage with an ‘outperform’ rating, calling it ‘The Dominator’ due to its leading market share and power; it has set a price target of ₹1,965 for the stock.