India’s National Stock Exchange: A Rising Power in the Global Financial Landscape

The National Stock Exchange (NSE) of India has reached a significant milestone, cementing its position as the sixth-largest stock exchange globally, with an impressive market capitalization of $5.6 trillion. This achievement reflects a month-over-month increase of 2.3% and a remarkable 47.4% surge year-over-year. Such upward momentum not only emphasizes the resilience of the NSE but also its growth trajectory in a competitive global financial landscape.

In the hierarchy of global exchanges, the New York Stock Exchange (NYSE) remains at the forefront with a substantial market capitalization of $30.1 trillion. The Nasdaq follows closely, boasting a valuation of $27.5 trillion. The Japan Exchange Group (JPX) holds third place with a modest growth of 0.3%, reaching $6.7 trillion. Meanwhile, the Shanghai Stock Exchange (SSE) secured fourth place with a robust market cap of $7.4 trillion, driven by an 18.8% increase in just one month. Euronext, despite a slight decline of 1.5%, rounded out the top five with a market capitalization of $5.7 trillion. Other significant players in the Asian market, such as Hong Kong’s HKEX and the Shenzhen Stock Exchange (SZSE), are also gaining traction, reflecting an increasing confidence among investors in Asia’s burgeoning markets.

However, the NSE faced a decline in trade volume, slipping to second place in this category. The total number of equity trades on the NSE fell to 84 crore in September, marking a 4.6% decrease from the previous month. In contrast, the SZSE took the lead with 85 crore trades, showing a modest increase of 2.3%. The Shanghai Stock Exchange followed in third place, reporting 62 crore trades. Despite the monthly downturn, the NSE’s year-to-date performance remains commendable, with a total of 732.6 crore trades, representing a 20.6% share of the global market. This positions the NSE firmly in second place behind the SZSE, which has recorded a cumulative 818 crore trades. Notably, both the NSE and Japan’s JPX are the only exchanges in the top 10 to have increased their market share during the first nine months of 2024 compared to the previous year, underscoring the NSE's continued growth amidst heightened global competition.

A standout feature of the NSE’s performance is its dominance in the equity derivatives market. The NSE’s share in this segment, measured by the number of contracts traded, has skyrocketed from 15.3% in 2014 to a staggering 74.4% in 2023, further escalating to an impressive 82.3% in the first nine months of 2024. During this period, the NSE traded an astounding 9,460 crore contracts, significantly outpacing its competitors. Brazil’s B3 held a distant second position, witnessing a decline in Its share from 6.3% in 2023 to 5.1% in 2024, while CBOE Global Markets also experienced a drop from 2.2% to 1.6%.

The NSE's exceptional performance, particularly in the equity derivatives sector, highlights its strategic positioning and operational efficiency. This robust growth not only enhances the NSE’s competitive edge but also reinforces India’s burgeoning prominence within the global financial market. As the NSE continues to capture market share across both equity and derivatives segments, it is poised to remain a crucial player in the evolving dynamics of international exchanges.

In conclusion, the National Stock Exchange of India stands as a testament to the country’s economic growth and resilience. With ambitious goals and a commitment to excellence, the NSE is not only shaping India’s financial landscape but also making its mark on the global stage. As it navigates the challenges of a competitive environment, the NSE’s ongoing expansion and innovation signal a bright future for both the exchange and the broader Indian economy.