Wall Street brokers issue bullish calls on National Stock Exchange
Morgan Stanley and JPMorgan Chase & Co. have initiated coverage of NSE stock with overweight ratings.
Wall Street brokers are providing bullish backing for the National Stock Exchange of India Ltd. (NSE), expecting the bourse to gain dominance as India's capital markets deepen, according to reports by The Economic Times and BusinessLine.
Morgan Stanley and JPMorgan Chase & Co. have initiated coverage of NSE stock with overweight ratings, despite the exchange mostly trading below its initial public offering price since its September listing. 360 ONE Capital Markets Pvt. has also recommended buying the stock.
Morgan Stanley set a 12-month price target of Rs 2,315, implying a potential upside of 30 per cent from Friday's closing price. JPMorgan sees shares reaching Rs 2,130, while 360 ONE has a target of Rs 2,100.
Jefferies has issued a buy recommendation on NSE, and Macquarie Capital rated the exchange as outperform. The brokerage expects new businesses, such as commodities and electronic gold receipts, could add about 15 per cent to revenue and profit by fiscal 2030.
Morgan Stanley described NSE as an "engine of India's capital markets," noting that only 3.2 per cent of working-age Indians trade in the cash market and 0.7 per cent trade equity derivatives.
Swarnabha Mukherjee, an analyst at 360 ONE, stated in a note that a recovery in capital market conditions and potential upside from smaller revenue streams could aid earnings.