NSE IPO - Thread on Various Aspects of the Exchange

NSE is going to come with an IPO this year and the entire market is already looking forward to it.

When it comes to market share, It is an undisputed market leader enjoying dominant share in Cash Segment (93%), Equity Futures (100%), Equity Options (94%) and Currency Derivatives (73%). I guess its fair enough if we can say that it is one of the best proxy plays available to play the Indian capital Market Growth Journey.

Before we talk about the IPO and what lies ahead in detail , Let us check some cool and other interesting data points about NSE’S dominating position and it’s market share.

Market Share

Yesterday, NSE released a press release and here are some of the interesting data points :

  • NSE is the World’s Largest Derivative (Both Equity and Currency) for the 3rd Consecutive Year.

  • It is the 4th Largest exchange in the world when it comes to cash equity in terms of number of trades.

  • Current Registered count of investors on NSE is 5.5 Crore.

  • Equity derivatives daily average turnover increased by 4.2 times from Rs 33305 Crores in 2011 and 141267 Crores in 2021.

  • Cash Market daily average turnover increased by 11187 Crores in 2011 to 69644 Crores in 2021

Let’s explore some more data regarding the market, The following data is an excerpt from Spark Capital’s research report on NSE :

1. Landscape of Exchanges in India

2.Cash Segment Average Daily Turnover

3.Equity Future

4.Equity Options

In this part, where are focusing mainly on Market Share - The moot question is going to be about the risks to NSE;s market share and also broadly speaking the capital markets as a whole ? With Crypto industry zooming, will it impact the derivative markets (which has fair amount of speculators) or is it only a short term phenomenon ? That remains to be seen.

Would love to hear your insights, additional data points and views on the market share of NSE :slight_smile: