NSE reported a sequential decline in revenue and profit in the September quarter from previous results. The drop resulted from a 16% fall in transaction charges and reduced trading activity. NSE plans to enhance market activity through amendments ...
NSE's transaction-charge revenue declined sequentially to ₹3,035 crore in the September quarter from ₹3,623 crore in the June quarter.
ET Intelligence Group: NSE's revenue and profit declined sequentially in the September quarter, hit by changes in trading patterns following the implementation of CAS (Closing Auction Session) and a 16% drop in transaction charges. The next phase of growth is likely to come from recovery in trading volumes supported by CAS-related normalisation and its diversification into newer businesses such as commodity derivatives, digital gold products, mutual fund transactions and monetisation of data services.
NSE's transaction-charge revenue declined sequentially to ₹3,035 crore in the September quarter from ₹3,623 crore in the June quarter. The fall was due to lower trading activity amid the CAS rollout in August. The new mechanism triggered greater price volatility towards the end of each trading day, prompting intraday equity and options traders to scale back activity.
NSE expects the amendments to the CAS framework, likely to take effect in December, to help expand market activity. While declaring first quarterly earnings as a listed company, the management said the CAS changes are expected to provide greater clarity on the settlement of expiring index options and support higher trading activity.
The exchange has also taken steps to diversify beyond the core transaction-fee business. It expects to launch corporate bond index futures after getting an approval from the Reserve Bank of India. This will open up a new avenue in fixed-income derivatives segment.
The company is looking to monetise its data offerings through Market Lens, its platform for providing curated datasets and analytics to market participants. The exchange plans to seek user feedback and add more datasets over the coming weeks and months. It will initially offer the service free of charge but may introduce a nominal fee to cover the cost of making the data available and simplifying it for investors.
NSE will promote Electronic Gold Receipts (EGRs) by making them easier for investors to access and trade. The exchange plans to set up collection centres where investors can deposit domestic gold and convert it into EGRs.PL Capital has maintained an 'Accumulate' rating on the stock. The broking firm has raised revenue and net profit estimates by 2.3% and 2.7% for FY27 and by 1.4% and 1.6% for FY28 in that order. It has assigned a target price of ₹1,950. The stock gained 7% in four trading sessions following the quarterly result declaration on November 3 to end the Muhurat-day trading at ₹1,930.5 on Sunday.
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