NSE shares extend gains, hit fresh peak; what brokerages recommend -

National Stock Exchange of India Ltd (NSE) shares continued their upmove for the fourth straight session on Friday, climbing 3.15 per cent to hit a fresh high of Rs 1,953.95. At this level, the exchange's market capitalisation (m-cap) stood at around Rs 4.83 lakh crore, taking its valuation past the $50 billion-mark.

Brokerages largely maintained their positive stance on the recently listed stock after India's largest stock exchange reported its September-quarter (Q2 FY27) results.

Morgan Stanley retained 'Overweight' on the stock with an unchanged target of Rs 2,315. Jefferies recommended 'Buy' with a revised target of Rs 2,125 from Rs 2,085 earlier. Macquarie retained its 'Outperform' rating and a target of Rs 1,975.

JPMorgan said NSE's consolidated revenue from operations was 4 per cent ahead of its estimate. Tight expense control helped the company deliver operating EBITDA 5.5 per cent above its estimate. Despite lower other income, profit was 3.5 per cent ahead of its estimate. The global brokerage retained 'Buy' with a target of Rs 2,130.

Macquarie noted, "Despite an in-line quarter, we expect the operating environment for capital markets participants to improve as the Sebi adopts a more accommodative stance on CAS (Closing Auction Session) and implements reforms to strengthen market-linked products. As a critical provider, NSE should continue to benefit."

NSE reported a 23 per cent growth in consolidated profit after tax (PAT) at Rs 2,578 crore for the September quarter. Consolidated total income grew 9 per cent year-on-year (YoY) to Rs 4,554 crore. Operating EBITDA soared 107 per cent YoY to Rs 3,079 crore, with an EBITDA margin of 76 per cent.

Consolidated revenue from transaction charges rose 9 per cent YoY to Rs 3,035 crore in Q2 FY27, compared with Rs 2,789 crore in Q2 FY26, driven by higher volumes in the cash market and equity options segments.

The cash market segment recorded an average daily traded volume (ADTV) of Rs 1,18,377 crore in Q2 FY27, up 24 per cent YoY. ADTV in equity options (premium value) increased 3 per cent YoY to Rs 47,977 crore, while ADTV in the equity futures segment stood at Rs 1,24,574 crore.

Revenue from data connectivity charges stood at Rs 267 crore. Revenue from operating investment income climbed 9 per cent YoY to Rs 237 crore from Rs 217 crore in Q2FY26. Revenue from data feed and terminal services rose 43 per cent YoY to Rs 165 crore from Rs 115 crore, while revenue from listing services increased 70 per cent YoY to Rs 150 crore from Rs 88 crore.

Deven Choksey, MD of DRChoksey Finserv, sees NSE as a long-term investment, citing the nature of the exchange business, liquidity benefits for established exchanges and the scope for new products.

Choksey said he views NSE as a "deep value" investment. "The long-term investment in this case is, I think, a deep value investment largely because the exchange business is exclusive. It's not a common business. Not everybody can come into the exchange business," the market veteran stated.

"You can call this particular stock a shock absorber in your portfolio, which would keep on giving you the comfort level during the volatile market," Choksey further said.

Ravi Singh, Chief Research Officer at Master Capital Services, suggested that investors with a long-term view continue to hold the stock and consider accumulating the counter on dips.