National Stock Exchange(NSE) is known as the stock trading hub of India, where investors and brokers trade the shares of companies. It is considered the leading stock exchange located in Mumbai, Maharashtra. NSE was founded in 1992 and followed the standard trading principles.
It is ranked as the world’s 4th largest in terms of cash equities as per the stats of the World Federation Of Exchanges (WFE).
Do you know why NSE continues to grow despite the fall in the cash market? Various reasons behind it let the NSE continue performing well in a volatile market. In this article, we will share the prominent reasons behind the performance of the national stock exchange.
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NSE Performance In Fiscal Year(FY) 2022
The performance of the NSE in the last fiscal year was impressive, where NSE unlisted share price surged by 7%. Amid the news of the pre-launch IPO for the exchange operator, National Stock Exchange performed beyond the expectation. In a few months, the NSE unlisted share price went up from Rs. 1,000 to Rs. 3,500 per share. Here are the highlights of NSE’s performance in the last FY:
- India’s leading stock market witnessed spectacular business growth with a Compound Annual Growth Rate(CAGR) of 35%, the highest in the last year. On the other hand, its profit-after-tax(PAT) was 27%.
- NSE also reached a market capitalization of $3.4 trillion, making it one of the world’s largest stock exchanges.
- It also emerged as the largest beneficiary after the pandemic due to its performance in the capital market. NSE also records a higher inflow of foreign and domestic investor capital.
- NSE unlisted shares also rise amid HNI (High Net Worth Individual) interest and perform consistently. One of the reasons behind its top performance is its investors. It is backed by investors like Life Insurance Corporation(LIC) and State Bank of India(SBI) caps.
Details Of NSE Unlisted Shares
NSE unlisted shares offer sole investors and financial institutions an opportunity. If you plan to buy NSE pre-IPO stocks, you should have some information. Here are the details of the NSE unlisted shares:
| Details of NSE unlisted Shares | Data In Figures |
| Status of DEMAT | NSDL, CDSL |
| Market Cap | Rs 1,70,000 Cr |
| Price Per Share | Rs 3,500 per share |
| Face Value | Rs 1 per share |
| Lot Size | 100 shares |
| Revenue growth in 2022 | 929.48% |
| EBITDA | 76.00% |
NSE Top Performing Product And Services
NSE has various products and services that helped it during the slowdown in the market. One of the biggest reasons behind the growth of the National Stock Exchange is its various working services. Let’s understand the different assets that helped NSE to grow during the slowdown in the cash market:
Index Management Services
NSE is one of India’s biggest index service providers that offers equity indices like Nifty 50, Bank nifty, hybrid indices, customized indices, and ESG indices to asset management companies, insurance providers, etc.
Derivatives Segment
In the derivatives segment, NSE provides trading facilities in equity, currency, commodity, commercial, and non-agricultural derivatives to domestic and foreign investors. This service led the NSE to keep growing despite the slow cash flow in the market.
Vending of Data And Information
NSE also provides the real-time data feed for the historical trading data, EOD data, unlisted shares data, and valuation of bonds to the traders. It incorporates individual investors in deciding to buy unlisted shares in India.
Reasons Why NSE Continue To Grow In The Past Year
NSE unlisted share price has more than doubled in the last few years. Various reasons behind it let India’s biggest stock exchange perform well despite the fall in the cash market. Various experts suggest that the NSE receives support from government agencies, allowing it to receive new market capital continuously.
After the pandemic, investors had insecurity in putting their hard-earned money in the stock market. On the other hand, various companies made their pre-IPO stocks available for investors. Here are the prominent reasons behind the NSE’s continuous growth in the past years:
Support From SAT
Securities Appellate Tribunal (SAT) offered some relief to the NSE in reference to its co-location case in the past few years. Due to this, the exchange can withdraw the amount of Rs 65,000 Cr from the escrow account on the derivative of SEBI. The NSE used this withdrawal amount when the cash market continued to flow.
Higher Earning
Leading Financial experts have found the higher earnings in the last three fiscal years is the prime reason behind the growth of NSE. The total revenue of the stock exchange jumped from Rs 3,507 to Rs 5,625 Cr. It also recorded the new investors who buy unlisted shares and bring large investments.
Positive Effect Of Pandemic
You might know, but the pandemic proved a blessing for the NSE, leading it to earn a good profit when India’s economy went down. During COVID-19, many retail investors rushed to the stock market to buy NSE unlisted shares. According to the SEBI report, the opening of the DEMAT account surged and recorded 10.7 million new investors between the years 2020 to 2022.
Investing In NSE Pre-IPO Shares
Is it best to invest in NSE unlisted shares in India? Since this exchange had excellent performance over the past years. However, it is equally important to analyze the market data before you decide to buy NSE pre-IPO stocks. Stockify provides you with accurate market data like market value, profit-after-tax ratio, debt, total returns, equity ratio, and many more.
We provide an in-depth market analysis that allows you to make a rational investing decision. You can access NSE and other unlisted companies’ shares on our website. Whether you are investing for the first time or want to add top-performing pre-IPO stocks, Stockify lets you access blue-chip stocks. For more info or queries, contact us now.
