- National Stock Exchange expected to file draft red herring prospectus this week
- BSE stock rose over 54% last year, outperforming Nifty 50 by nearly 60% year-to-date
- STT hikes shifted derivatives market share to BSE with 55.4%, NSE holds 44.6% now
The National Stock Exchange is well on track to take the next step for its much anticipated initial public offering and is expected to file its draft red herring prospectus this week, as per reports.
Once listed, India's largest stock exchange will be facing off an already listed BSE, the country's oldest bourse. Investors will soon have a pick between India's top two stock exchanges. Before that, it seems to be a good time to evaluate how NSE fares against BSE.
BSE's stock has seen a strong surge of 54.31% in the last 12 months and 58.13% year-to-date on the NSE, compared to the benchmark Nifty 50 itself which has fallen nearly 4% in one year and 8% year-to-date. NSE's unlisted shares currently trade at Rs 2,015 levels, according to Unlisted Arena data.
The Big STT Shift
BSE outperformed NSE in the derivatives space for the first time in April after the central government hiked Securities Transaction Tax or STT back in February.
NSE, a pioneer in equity and index derivatives was left with 44.6% of notional F&O turnover as against BSE, which held 55.4% after the hike.
STT on futures was increased from 0.02% to 0.05% during Union Budget 2026, while the tax on option premiums was raised from 0.1% to 0.15%. Moreover, STT on the exercise of options was hiked to 0.15%. Before the hike's impact, BSE held 43.6% of the market share, while NSE held 56.4%.
ALSO READ: NSE IPO: SBI, LIC Seen Among Top Sellers As OFS May Touch Rs 23,000 Crore
Financial Score Cards
Despite the market share shifts, NSE continues to maintain stronger profitability metrics. In its fourth quarter results, the bourse registered a 19% sequential increase in net profit to Rs 2,871 crore from Rs 2,409 crore. On the other hand, BSE's net profit for Q4 of fiscal 2026 rose 32.5% to Rs 797 crore.
Expiry Shake Up
NSE gained an edge over BSE after the Nifty expiry changed from Thursday to Tuesday and Sensex expiry from Tuesday to Thursday. The rejig reversed the structural advantage BSE had enjoyed in 2024, with NSE's expiry now preceding BSE's by two days.
Mcap Battle
BSE has a market capitalisation of around Rs 1.68 crore itself, whereas the cumulative Mcap of all the companies listed on the exchange is well over Rs 400 lakh crore.
The total market capitalisation of all companies listed on the National Stock Exchange of India (NSE) is approximately Rs 438.9 lakh crore.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.