Dolat Capital launches coverage on NSE with a bearish recommendation, arguing that tighter F&O regulations will curb trading volumes and erode the exchange’s market share. The brokerage cites the stock’s lofty valuation, noting that it leaves little room for upside.

The firm sets a target price of ₹1,550, a 26% discount to the current ₹2,085 trading level in the private market. Analysts led by Punit Bahlani warn that a drop in proprietary trading and a loss of index‑option market share will constrain NSE’s profit and growth rates, even though the brokerage acknowledges the exchange’s long‑term structural upside.

Dolat projects options‑trading turnover to decline at an annualised rate of about 4% between fiscal 2026 and 2029, citing tighter rules, reduced retail participation and a weaker market cycle. The note also grades BSE Ltd. and Multi Commodity Exchange of India Ltd. with sell ratings.

NSE has filed for an estimated $3 billion IPO, targeting a September listing pending SEBI approval. The exchange’s shares are actively traded in India’s unlisted market, where price movements and transfer data are periodically disclosed.