BSE, MCX Share Price Decline After Jefferies Flags Strong Positioning of IPO-Bound NSE

BSE share price and MCX share price came under pressure on Tuesday after Jefferies said the upcoming NSE initial public offering (IPO) could draw investor attention because of the exchange’s diversified revenue profile and leadership across multiple market segments. The brokerage’s remarks weighed on sentiment for listed exchange operators during the session.

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At around 12:10 pm on July 7, BSE share price was down 3.8%, while MCX share price declined 4.5%. Both stocks were among the biggest losers on the Nifty Capital Markets index, which was trading nearly 2% lower. Angel One and Groww also traded about 3% lower during the session.

Jefferies Highlights NSE’s Market Leadership

In its note, Jefferies said the National Stock Exchange has built a broader product portfolio than its listed peers and continues to hold more than 90% market share across most trading segments. The brokerage noted that the exchange has also developed a technology platform comparable with leading global exchanges while steadily expanding its presence in commodities.

According to Jefferies, the NSE IPO, for which draft papers have already been filed with SEBI, would complete the listed exchange landscape in India. The proposed offer is estimated at around ₹30,000 crore.

The brokerage added that NSE’s clearing corporation commands an 88% share of the cash market and 91% of the futures and options clearing segment. It also pointed out that technology and data services contributed nearly 13% of the exchange’s FY26 revenue.

Revenue Mix Seen as a Key Strength

Jefferies estimated that NSE accounted for nearly 70% of total exchange revenues generated in India. Besides equity cash and derivatives, the exchange operates across commodities, currencies, bonds and other market segments, giving it a wider earnings base than competitors.

The brokerage also noted that derivatives have become the largest revenue contributor for Indian exchanges. Equity options turnover expanded at a compounded annual growth rate of 56% between FY20 and FY26, compared with 19% growth in cash market turnover. During FY26, average daily options premium turnover reached nearly 70% of daily cash market turnover, making derivatives responsible for about 70% of exchange operating revenue.

Settlement Costs and Share Sale Details

Jefferies said NSE’s reported profitability was affected by one-time regulatory settlement costs. The exchange made provisions of ₹1,390 crore in FY26 related to the colocation and dark fibre matter, following a ₹670 crore payment in FY25 under the TAP case.

Excluding these exceptional items, the brokerage estimated that NSE’s normalised operating EBITDA margin remained stable at around 76-77%.

The report also noted that public sector general insurers plan to sell a combined 1.1% stake through the IPO. According to Jefferies, the proposed sale could strengthen the solvency position of some participating insurers while allowing them to monetise part of their investment. The brokerage’s assessment, however, prompted investors to reassess listed exchange stocks, leading to weakness in BSE share price and MCX share price during Tuesday’s trading session.