While other unlisted shares have high fluctuations and volatility, the National Stock Exchange(NSE) unlisted shares turned out to be the star of the grey market. The nse share price jumped from Rs 3600 per share on April 23 to Rs 4800 on April 24, which is a massive
33% YoY growth. This broke the sideways movement happening in NSE for the past two years.
Here are 5 factors that led to this massive price surge:
A) Demand Supply Mismatch
Some brokers attributed this rise to increased demand from HNI and retail investors. On the other hand, the supply of NSE shares was limited in the unlisted share market. Some large investors backed out from selling their shares, which increased the shortage of shares and increased the NSE share price.
The share rallying around Rs 3100-3200 on Dec 23 rose to Rs 3800-3900 on Jan 24. Making up to a market capitalization of Rs 1.93 lakh crore.
B)Operational growth in the capital market segment.
NSE’s operations have increased significantly in FY 23-24. Daily trades increased from 29 crore in April 23 to 64.82 crore on March 24. The Average Daily Turnover (ADTV) also increased from Rs 51,726 crore during April 23 to Rs 97,739 crore during March 24.
| Month | Number of Trades (in Lakhs) | Average Trade Size | Average Daily Turnover (In ₹ Crores) |
| April 23 | 2,900 | 30,324 | 51,726 |
| September 23 | 5,446 | 30,679 | 83,540 |
| December 23 | 6,822 | 30,484 | 1,03,980 |
| March 24 | 6,482 | 28,649 | 97,739 |
Source: NSE India
C) An additional 1 crore Unique investors in 5 months
On March 24, the NSE user base crossed 9 crore as it added around 1 crore new investors in 5 months. The total client codes registered stands at 16.9 crore. If analyzed the 6 to 7 crore journey took 9 months to complete. The next crore unique investors came in just 8 months. And the latest jump from 8 to 9 crore took just 5 months.
The NSE investor base has witnessed a 3-time jump in the last 5 years. Increased financial literacy made the common man interested share market. Leading to an expansion in investor base and credibility for NSE.
D) Slashing of transaction charges by 1%.
In March the NSE decided to slash the transaction charges by 1% for cash equity and equity derivatives. The reduction is now effective from April 1, 2024. This reduction would impact the exchange’s annual revenue from the transaction charges by approx Rs. 130 crores. This move also impacts the trading cost resulting in improved profit margins ultimately impacting National Stock Exchange share prices.
E) Massive IPO Buzz.
The NSE IPO is the most awaited IPO among all the unlisted shares in india. Due to regulatory issues with SEBI, the IPO is taking longer than usual. Considering the massive growth in its operations and financials, the investors hold a highly positive sentiment in the NSE share.
Currently, NSE has filed a Draft Red Herring Prospectus (DHRP) which is under process. This IPO is expected to be launched in 2024.
All these factors have led NSE to a 33% Yearly growth in the last year from Rs 3600 per share on April 23 to Rs 4800 on April 24. NSE dominates the market share with more than 90% in all categories. This is the best time to invest in NSE and gain from the growth in NSE Share price.
How to buy NSE Shares?
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