NSE: At the Centre of Market Activity
In 1994, India’s markets were still powered by paper, pen, and the chaos of trading pits.
Then the National Stock Exchange (NSE) started the country’s first electronic, screen-based trading system.
It didn’t look like a revolution at first - just a few terminals with numbers flickering across them.
Yet that moment reshaped Indian markets for good.
Today, NSE is one of the world’s largest exchanges and a key driver of India’s economic growth.
Over 22 crore investor accounts are linked to it, and more than 2,700 companies trade on it.
The Exchange organises its products into three asset classes: the capital market for trading and listing of equities, fixed income securities, and the derivatives market.
In the first quarter of FY26 alone, NSE raised ₹4.2 trillion in debt and ₹1 trillion in equity capital.
From IPOs to bonds, it has become the central artery of India’s financial system.
It is also a global trading powerhouse. NSE is the world’s largest derivatives exchange by contracts and the second-largest equity exchange by trades.
In 2024, it raised more equity capital in primary markets than any other exchange worldwide.
Its clearing arm, NSE Clearing, was India’s first clearing corporation and continues to keep trades flowing smoothly.
Indices like the Nifty 50, Nifty Next 50, Nifty 100, Midcap, Smallcap, and even the volatility index India VIX now shape how India invests.
In fact, 73% of all the money flowing into equity and debt passive funds is benchmarked to the Nifty index.
The numbers behind its market share show how dominant it has become.
It handles 93.8% of all cash market trades.
Equity futures are almost entirely on NSE with a 99.8% share. Equity options account for 78.6% while currency derivatives account for a full 100%.
The profile of Indian investors has changed, too.
Almost a quarter of new individual investors are women.
Four in ten are under the age of 30.
The country’s investor base is younger, more diverse, and more willing to put money to work in markets.
In 2024, NSE facilitated 268 IPOs worth ₹1.67 lakh crore, among the highest anywhere.
On July 23, 2024, it processed more than 2,000 crore orders in a single day. On June 5, it executed 29 crore trades. Both were world records.
Financially, the exchange is as strong as the activity it hosts. In Q1 FY26, income touched ₹4,798 crore, up from ₹4,397 crore in the previous quarter.
Profit rose to ₹2,924 crore, compared with ₹2,650 crore earlier.
Cash market activity surged, with average daily traded volumes rising 14% quarter-on-quarter to ₹1.08 lakh crore.
But strip away these records, and NSE is still a platform that connects investors, companies, and institutions.
It enables capital to be raised, keeps markets steady, and in doing so, shapes how India grows.
In the years ahead, more Indians will invest, more global money will enter, and digital finance will open new doors.
At the centre of it all, NSE will continue to drive India’s markets forward.
Sources:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
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