Battle of bourses: Listed BSE vs IPO-bound NSE; which is a better bet?

As NSE moves closer to its long-awaited IPO, investors are weighing its valuation and growth prospects against listed rival BSE

The National Stock Exchange of India (NSE) is inching closer to a public listing, with the country’s largest stock exchange reportedly planning to file its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) later this week, according to media reports. 

The development has set the stage for a classic “battle of the bourses”, leaving investors with a choice between an already listed exchange and a potential IPO candidate.

 

On one hand is BSE, which has delivered strong gains in recent months. So far in calendar year 2026, the stock has surged 48 per cent on the NSE, outperforming the benchmark Nifty 50, which has declined 11 per cent over the same period.

 

 

On the other hand, unlisted shares of the National Stock Exchange of India (NSE) have risen nearly 4 per cent during the same period, as investors position themselves for a potential IPO-led re-rating once the listing process moves forward, according to data from Unlisted Arena.

BSE vs NSE: How the two exchanges stack up

At first glance, BSE and NSE appear similarly valued. However, NSE generates nearly four times BSE’s profits and operates at higher margins, despite trading at a lower valuation multiple.

 

Further, the competitive equation has also shifted. In September 2025, NSE moved Nifty expiry from Thursday to Tuesday, while BSE shifted Sensex expiry from Tuesday to Thursday. This reversed the structural advantage BSE had enjoyed in 2024, with NSE’s expiry now preceding BSE’s by two days.

 

The difference is also visible in derivatives market share. While BSE accounted for around 55 per cent of notional F&O turnover in April 2026, NSE retained nearly 66 per cent of options premium turnover — the segment that drives revenue generation.

 

For BSE, analysts have cut FY27 and FY28 earnings estimates, with consensus target prices suggesting downside from current levels. NSE, meanwhile, has a clear set of near-term triggers. The exchange is targeting a DRHP filing in June 2026 and a listing before December through a ₹21,000–25,000 crore offer for sale (OFS), implying no dilution of existing equity. It received Sebi’s no-objection certificate on January 30, 2026, and board approval for the IPO on February 6, 2026.

 

BSE, on the other hand, has already delivered a strong operational performance, with Q4 profit after tax rising 61 per cent year-on-year and revenue growing 85 per cent.

Analysts render a split verdict

Analysts remain divided on the two exchanges, with some citing stretched valuations and others pointing to strong earnings and market share gains as justification for further upside.   Gaurav Sharma, head of research, equity, at Globe Capital Market, believes BSE has run ahead of fundamentals and sees better risk-reward in NSE, citing its stronger earnings profile, dominant share in revenue-generating turnover, and a potential re-rating catalyst from the upcoming IPO.

 

“BSE has run ahead of fundamentals into a setup where its core competitive thesis has already reset. Multiple compression is the path of least resistance,” said Sharma.

 

He further believes that NSE looks underpriced: 4x the earnings at a comparable multiple, a dominant share of revenue-relevant turnover, and a hard re-rating catalyst on the calendar.

 

“Near-term timing risk (3–6 months around listing) is real, given the shareholder overhang and the possibility of conservative OFS pricing. However, on a 12-month view, the asymmetry favours NSE,” said Sharma.

 

Sunny Agrawal, head of fundamental retail research at SBI Securities, on the other hand, said that BSE’s outperformance has been driven by sustained market share gains in the derivatives segment and expects its earnings growth to continue outpacing NSE’s.

 

“BSE’s outperformance is predominantly on the back of continuous market share gains in the F&O segment. BSE's market share in terms of premium turnover stands at 30.6 per cent as of May 2026. In terms of valuations, BSE is trading at 69x/50x FY26/FY27E PE multiples, with a likely 29 per cent EPS CAGR between FY26 and FY28,” said Agrawal.

 

BSE’s earnings growth, Agrawal said, is likely to continue its earlier trend and outpace NSE’s earnings growth, led by market share gains in derivatives and the cash market.

 

Assuming an IPO price in the band of ₹1,600–1,800, NSE is trading at a 38–43x FY26 PE multiple, which Agrawal believes appears cheaper than BSE.

 

(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)