Indian Stock Exchange BSE Sees Surge in Shares Due to Upcoming NSE IPO

India's Oldest Stock Exchange Sees Significant Growth

Shares of the BSE, India's oldest stock exchange, rose up to 14% on Monday, reaching a fresh 52-week high of Rs 3,794. This surge is largely due to the potential NSE IPO, which is expected to increase the chances of the BSE stock being re-rated.

Background and Market Trends

The BSE shares have already seen a significant increase of nearly 200% in the last year, driven by the growing retail participation in the market. As a result, market intermediaries like bourses have become top beneficiaries in the bull market.

NSE's Recent Developments

The NSE has set November 2 as the record date for its 4:1 bonus shares issue, announced earlier in May. Additionally, the Sebi has disposed of a case against the NSE and its officials, including Ravi Narain and Chitra Ramakrishna, due to a lack of sufficient material evidence in the co-location scam.

This development has paved the way for the NSE IPO, which is expected to have a positive impact on the BSE stock. The NSE will need to list its IPO on the BSE, as an exchange cannot list on its own platform.

Financial Performance

In the June quarter, the BSE reported a net profit of Rs 265 crore, a 40% decrease from the previous year. However, its revenue from operations surged 181% to Rs 608 crore. On the other hand, the NSE saw a 39% increase in its consolidated profit to Rs 2,567 crore, with a 51% rise in revenue to Rs 4,510 crore.

Market Expectations

The NSE IPO is expected to be a significant trigger for the BSE stock, which has already seen a 170% increase in the last year. The derivatives segment is a key area of focus, with the BSE making steady inroads into this market.

With the potential NSE IPO on the horizon, investors are eagerly awaiting the listing, which is expected to have a positive impact on the BSE stock and the overall market.