BSE Shares Slide 6% as SEBI Clears NSE IPO Path; IFCI Jumps 12% on Stake Exposure

Market Performance: A Clear Split in Investor Reaction

February 1 opened with a sharp contrast on Dalal Street. Two market-linked stocks moved in opposite directions following a single regulatory decision.

Shares of the Bombay Stock Exchange (BSE) dropped nearly 6% during morning trade. At the same time, IFCI surged by approximately 12%, attracting market attention.

By mid-session:

• BSE shares fell to ₹2,638, extending losses for the second straight session

• IFCI shares rose to ₹61.69, ending a two-day losing streak

The trigger for both moves came from the same source — SEBI’s long-awaited clearance for the NSE IPO.

SEBI Clears the Path for NSE IPO

The Securities and Exchange Board of India (SEBI) has issued a No Objection Certificate (NOC) authorizing the National Stock Exchange (NSE) to proceed with its initial public offering.

According to sources cited by Moneycontrol:

• NSE may take 8–9 months to launch the IPO after receiving SEBI’s NOC

• The IPO will be an Offer for Sale (OFS)

• No fresh capital will be raised by the exchange through this listing

This development marks a major regulatory milestone. NSE originally filed for its IPO in 2016 but later withdrew the proposal.

With the NOC now in place, the IPO process is officially back on track.

Why BSE Shares Came Under Pressure

The decline in the BSE share price reflects market sentiment rather than any change in fundamentals.

NSE dominates India’s trading ecosystem. Any step toward its public listing naturally refocuses attention on its scale and reach.

Market share data highlights the gap clearly:

• Cash segment:

  • NSE: 90–92%

  • BSE: 8–10%

• Stock F&O segment:

  • NSE: ~95%

  • BSE: ~5%

• Index F&O segment:

  • NSE: ~80%

  • BSE: ~20%

As the NSE IPO narrative gains momentum, investors appear to be reassessing competitive dynamics, leading to selling pressure in BSE shares.

Why IFCI Shares Jumped 12%

IFCI’s sharp rise came from its indirect exposure to NSE.

IFCI holds a majority ownership in Stock Holding Corporation of India (SHCIL). Through this holding:

• IFCI has an effective indirect stake of around 2.35% in NSE

With expectations building around NSE’s valuation post-IPO, this indirect stake became the focal point for IFCI’s stock movement.

That linkage helped IFCI shares rally around 12%, reversing losses seen over the previous two sessions.

Company Details: NSE, BSE, and the Competitive Landscape

The NSE–BSE comparison has always been about scale and market share.

NSE leads decisively across segments:

• Strong dominance in cash trading

• Near-monopoly in stock futures and options

• Significant lead in index derivatives

BSE, while smaller in market share, remains a key institution in India’s capital markets. However, regulatory developments tied to NSE tend to influence sentiment across exchange-linked stocks.

Summary: One Decision, Two Very Different Stock Moves

SEBI’s NOC for the NSE IPO acted as a single catalyst with opposite outcomes in the market.

• BSE shares fell nearly 6%, reflecting competitive pressure concerns

• IFCI shares rose around 12%, driven by its 2.35% indirect stake in NSE

• NSE’s IPO is expected in 8–9 months and will be an OFS

• NSE continues to dominate market share across cash and derivatives segments

Source: Moneycontrol