After a marginal rise on the listing day, National Stock Exchange (NSE) stocks lost all their gains and fell below the IPO price, though analysts are still bullish on the stock. NSE shares traded on BSE on September 24 at Rs. 1,800 per share, compared to the IPO’s Rs. 1,785 was less than 1 percent premium over the price. Within an hour of the muted start, shares jumped more than 5 percent from the IPO price to Rs. 1,878 to a high of Rs. 4.64 lakh crore, but then the stock started falling. The special thing is that after this decline, NSE has also dropped out of the list of top 10 most valuable companies in the country. Let us also tell you what kind of data is being seen about NSE shares.
Big drop in shares?
NSE shares were listed in the market about two weeks ago. Since then, its stock has seen a steady decline. If we look at the data, NSE shares on Monday fell to Rs. 1,712 per share, their lowest level since the listing. The stock is now trading at its listing day high of Rs. 1,878 to about 9% and Rs. 1,785 is 4% below the IPO price. However, on Tuesday, NSE shares rose 1.53 percent to close at Rs 1749.85 on the BSE. However, in the morning, the NSE shares were at Rs. 1,728 which also opened at Rs. The day’s peak was reached at 1,760.
How much has the valuation fallen?
If we talk about valuation, the valuation of NSE has decreased by Rs 41 thousand crore from its peak on Monday. If we look at the figures, the valuation of NSE reached Rs 4.64 lakh crore on the day of listing. On Monday, the company’s shares traded at Rs. A 52-week low was reached at 1712. The NSE was then valued at Rs. 4.23 lakh crore was. This means that since then, the valuation of NSE has increased by Rs. 41 thousand crores has decreased. However, NSE still shows a loss of Rs 31 thousand crore compared to Tuesday.
NSE from top 10
This decline has resulted in NSE’s peak market value of around Rs. 41,000 crore in losses, knocking the exchange out of the list of India’s top 10 most valuable companies. According to BSE data, around Rs. With a market capitalization of Rs 4.33 lakh crore, NSE is now ranked 11th after Reliance Industries, Bharti Airtel, HDFC Bank, ICICI Bank, SBI, TCS, Bajaj Finance, L&T, LIC, HUL.
Why are analysts bullish on NSE shares?
Sunny Aggarwal, head of fundamental research at SBI Securities, said in an ET report that capital market growth and overall market sentiment could be bullish factors for NSE shares in the short to medium term. He said that while NSE’s valuations are expensive compared to global peers such as Cboe, Nasdaq, ICE and Euronext, Indian exchanges can still command a premium as domestic capital-market volumes are growing rapidly.
The analyst said regulatory intervention is important, especially as the emphasis is on curbing excessive speculation and over trading. This is also important as nearly 60 per cent of NSE’s revenue currently comes from options trading, making regulatory changes in derivatives potentially a major challenge. He further said that however, the revenue mix is gradually changing and the contribution of transaction-based business is declining.
