Morgan Stanley, JPMorgan rate NSE with overweight status
Global brokerages see significant upside for National Stock Exchange shares as Indian household savings move into financial markets.
Global brokerages Morgan Stanley and JPMorgan have initiated coverage on the National Stock Exchange of India (NSE) with Overweight ratings, according to Mint. The firms suggest the exchange could benefit from rising retail participation and growing systematic investment plan (SIP) contributions.
Morgan Stanley has set a price target of ₹2,315 per share, which suggests a potential increase of approximately 30 per cent from the previous Friday's closing price. JPMorgan has assigned a target of ₹2,130, representing a potential rise of nearly 20 per cent.
Morgan Stanley expects the exchange's revenue and normalised profit after tax (PAT) to grow at a compound annual growth rate (CAGR) of around 15 per cent between FY27 and FY29. The brokerage noted that the exchange commands more than 90 per cent of the cash equities market.
JPMorgan highlighted the exchange's integrated business model, which includes trading, clearing, settlement, and index services. The brokerage expects non-transaction revenue to rise to around 25 per cent of total revenue by FY29.
Both brokerages identified risks including regulatory changes, weaker trading activity, and market-share pressures in index options. JPMorgan noted that NSE's index options market share declined from approximately 90 per cent in November 2024 to about 66 per cent in September 2026.