Shares of BSE Ltd. surged after India's market regulator cleared its rival, the National Stock Exchange, in a long-standing case. Investors believe that BSEs shares might surge in value now that NSE is moving towards an initial public offering after this regulatory decision.
Shares of BSE surged as much as 19%, the most since March 2022. Its trading volume was 9.3 times the average for the past three months, according to Bloomberg data. Meanwhile, CDSL's shares advanced for the fourth consecutive trading session and rose by up to 5.6%, while the shares of multi-commodity exchange of India increased by up to 7.7%.
"NSE's upcoming listing could boost shares of other market infrastructure companies, including BSE and CDSL, a depository services provider," according to Abhay Agarwal, a fund manager at Piper Serica Advisors.
Agarwal explained that if a company with a market cap of Rs 3–4 lakh four lakh crore goes public, it would benefit all related entities, such as CDSL, brokers, and exchanges, because investors would be eager to participate in the IPO.
"We had seen the same happen last time in the IPO of LIC (Life Insurance Corp). This IPO will be comparable to that," he told NDTV Profit.
Brokerages earn from IPOs by receiving commissions from the companies that are raising funds through these offerings.
Earlier, on Friday, the Securities and Exchange Board of India had dismissed the case against the NSE, and others involved in the co-location case, citing the absence of adequate material proof.
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