NSE shares climb 12% in a month; should investors enter now?

Shares of National Stock Exchange of India Ltd (NSE) resumed their upmove after a single-session halt in Wednesday's trade, climbing 1.91 per cent to hit a fresh peak of Rs 1,965. The recently listed stock was last seen up 0.64 per cent at Rs 1,940.40, taking its one-month gains to 12.10 per cent. India's largest stock exchange debuted on September 24.

For the September quarter (Q2 FY27), NSE reported 23 per cent growth in consolidated profit after tax (PAT) at Rs 2,578 crore. Consolidated total income grew 9 per cent year-on-year (YoY) to Rs 4,554 crore. Operating EBITDA soared 107 per cent YoY to Rs 3,079 crore, with an EBITDA margin of 76 per cent.

Consolidated revenue from transaction charges rose 9 per cent YoY to Rs 3,035 crore in Q2 FY27, compared with Rs 2,789 crore in Q2 FY26, driven by higher volumes in the cash market and equity options segments.

The cash market segment recorded an average daily traded volume (ADTV) of Rs 1,18,377 crore in Q2 FY27, up 24 per cent YoY. ADTV in equity options (premium value) increased 3 per cent YoY to Rs 47,977 crore, while ADTV in the equity futures segment stood at Rs 1,24,574 crore.

Revenue from data connectivity charges stood at Rs 267 crore. Revenue from operating investment income increased 9 per cent YoY to Rs 237 crore from Rs 217 crore in Q2FY26. Revenue from data feed and terminal services rose 43 per cent YoY to Rs 165 crore from Rs 115 crore, while revenue from listing services increased 70 per cent YoY to Rs 150 crore from Rs 88 crore.

Expert view

On NSE, market veteran Arun Kejriwal said the stock has rallied in line with the broader upmove in large-cap stocks. "Clearly, if Indian markets have to stay bullish, the listed exchanges' space cannot remain subdued or underperform," he added.

Ravi Singh, Chief Research Officer at Master Capital Services, noted, "NSE has recovered around 18 per cent from its recent lows, reflecting improving investor sentiment. The company reported a strong Q2 FY27 performance. The stock offers long-term growth potential. Investors with a long-term view can consider accumulating the stock at current levels, with a target price of Rs 2,000, keeping valuations and market risks in mind."

Deven Choksey, MD of DRChoksey Finserv, sees NSE as a long-term investment, citing the nature of the exchange business, liquidity benefits for established exchanges and the scope for new products.

Choksey said he views NSE as a "deep value" investment. "The long-term investment in this case is, I think, a deep value investment largely because the exchange business is exclusive. It's not a common business. Not everybody can come into the exchange business," the market veteran stated.

"You can call this particular stock a shock absorber in your portfolio, which would keep on giving you the comfort level during the volatile market," Choksey further said.