BSE, MCX Shares Fall After Jefferies Calls NSE More Diversified Ahead Of IPO

Shares of BSE and Multi Commodity Exchange of India (MCX) declined on Tuesday after brokerage firm Jefferies said the upcoming IPO of the National Stock Exchange (NSE) could strengthen its position as a more diversified market infrastructure player.

BSE shares fell around 3.8%, while MCX declined nearly 4.5% during afternoon trade on July 7.

Both stocks emerged among the biggest losers on the Nifty Capital Markets index, which was trading around 2% lower. Other market-related companies, including Angel One and Groww, also traded lower.

According to a report by Moneycontrol, Jefferies said NSE, which has filed draft papers with the Securities and Exchange Board of India (SEBI) for a proposed ₹30,000 crore initial public offering, has a wider product portfolio compared with BSE and MCX.

The brokerage noted that NSE commands more than 90% market share across most segments and has developed a technology and data business comparable with global exchange operators.

According to Jefferies, NSE’s stronger clearing market share and higher premium-to-notional turnover in equity options have helped it generate better profitability compared with BSE.

The brokerage said NSE’s listing would complete the “trio” of major listed exchange-related businesses in India.

NSE reportedly holds around 90% market share in most categories, except index options and commodity futures and options. Its clearing arm, NSE Clearing Ltd, accounts for approximately 88% market share in the cash segment and 91% in futures and options. Technology and data services contributed nearly 13% of NSE’s FY26 revenue.

Jefferies estimated that NSE accounted for nearly 70% of total exchange revenues in India, supported by a wide range of offerings including equity cash, index options, stock options, equity futures, commodity derivatives, bonds and currency products.

The brokerage also highlighted the rapid expansion of the derivatives segment. Equity options grew at a compound annual growth rate of 56% between FY20 and FY26, compared with 19% growth in cash market turnover. Derivatives contributed around 70% of operating revenues for Indian exchanges in FY26.

However, Jefferies noted that NSE’s earnings were impacted by regulatory matters, including provisions related to the colocation and dark fibre case worth ₹1,390 crore in FY26 and a ₹670 crore payment in the TAP matter in FY25. Excluding these one-time expenses, the brokerage estimated NSE’s normalised operating EBITDA margin at around 76-77%.

The IPO-bound exchange also plans an offer for sale by public sector general insurers, which could help improve their solvency positions, according to Jefferies.