Nuvama initiates 'Buy' on NSE with Rs 2,220 target price
- Nuvama Institutional Equities initiates coverage on NSE with a 'Buy' rating.
- The brokerage sets a target price of Rs 2,220 for NSE shares.
- NSE shares recently touched a record high of Rs 1,965.
- Nuvama projects an 11% CAGR for NSE revenue and earnings through FY29.
- NSE holds a dominant 93% market share in the domestic cash segment.
Nuvama Institutional Equities initiated coverage on the National Stock Exchange of India on Wednesday, 12 November 2026, assigning the shares a 'Buy' rating. The firm set a target price of Rs 2,220, which represents an upside potential of approximately 14% from the closing price on Wednesday.
Nuvama maintained a 'Buy' rating on Tata Power, lowering its target price to Rs 416 from Rs 421. Nuvama maintained a 'Buy' rating on a separate stock, lowering its target price to Rs 416 from Rs 421. This Rs 416 target suggests an upside of about 16% from the previous closing price of Rs 360 per share.
Elara Capital also reiterated a 'Buy' rating on 12 November 2026, reducing its target price to Rs 485 per share from Rs 504. This target implies roughly 35% upside potential. Over the last three years, the stock has delivered returns exceeding 42%, while five-year returns are above 50%.
NSE shares reach record high of Rs 1,965
NSE shares reached a record high of Rs 1,965, marking a 19% rally from their all-time low, Moneycontrol.com reported. In broader market developments, Tata Power's market capitalisation is reported as more than Rs 1.15 lakh crore. The company also announced its net profit for the second quarter of the 2027 fiscal year rose 33% year-on-year to Rs 1,652 crore.
Brokerage projects 11% CAGR for NSE revenue and earnings
Nuvama values the exchange at 40 times its estimated earnings per share for September 2028 to align with BSE valuations.
The Economic Times reported on November 12, 2026, that Tata Power revenue for the July-September quarter of fiscal year 2027 rose 26% year-on-year to Rs 19,886 crore, up from Rs 15,769 crore in the same quarter a year earlier. EBITDA for the quarter grew 5% year-on-year to Rs 4,245 crore. Despite these results, the company's share price has fallen 15% since its fourth-quarter earnings announcement. Tata Power shares declined 1% over the last week and 6% in 2026 to date, though they rose 5% over the last month and have fallen 7% over the past year.
NSE maintains dominant market share in cash and derivatives
The National Stock Exchange holds a market share of approximately 93% of domestic cash market turnover. It captures nearly 100% of equity futures and about 68% of equity options premium.
NSE Clearing Ltd. handles approximately 90% of all cash and futures and options trades.
Regulatory hurdles seen as priced into NSE valuation
Nuvama believes that concerns regarding regulatory changes in the derivatives segment are already largely priced into the stock. The exchange reported 11.9% year-on-year revenue growth in the first half of fiscal year 2027.
This growth occurred despite regulatory interventions such as expiry rationalisation and higher securities transaction tax.
Analysts identify risks from derivatives regulation and competition
These potential headwinds include tighter derivatives regulations and potential market share gains by the BSE.
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