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NSE Rises as a Global Powerhouse with Record Market Cap and Derivatives Dominance

Published 03-11-2024, 12:34 pm

In September 2024, India’s National Stock Exchange (NSE) marked another milestone, securing its spot as the sixth-largest stock exchange globally with a market capitalization of $5.6 trillion—a notable 2.3% increase month-over-month and a remarkable 47.4% rise year-over-year. This upward momentum highlights the NSE's resilience and growth trajectory within a competitive global landscape.

Leading the rankings, the New York Stock Exchange (NYSE) held a robust $30.1 trillion in market cap, followed closely by Nasdaq at $27.5 trillion, as these two U.S. exchanges continued to assert their dominance. Japan Exchange Group (JPX) maintained third place, albeit with modest 0.3% growth, reaching $6.7 trillion, while the Shanghai Stock Exchange (SSE (LON:SSE)) came in fourth with $7.4 trillion, boosted by an 18.8% month-over-month surge. Euronext held fifth position despite a minor 1.5% dip, closing September with a market cap of $5.7 trillion. Other Asian exchanges, including Hong Kong’s HKEX and the Shenzhen Stock Exchange (SZSE), followed close behind, reflecting growing investor confidence in Asia's expanding markets.

However, in terms of trade volume, the NSE saw a shift, dropping to second place as its number of equity trades slipped to 84 crore in September—a 4.6% monthly decline. China’s SZSE climbed to first place with 85 crore trades, up by 2.3% month-over-month. The Shanghai Stock Exchange took third with 62 crore trades. Yet, year-to-date, NSE’s performance has been robust with a cumulative 732.6 crore trades, representing a 20.6% global market share and securing a strong second position behind SZSE, which achieved 818 crore trades. Notably, NSE and Japan’s JPX were the only exchanges among the top 10 to expand their market share in the first nine months of 2024 compared to the previous year, underscoring NSE's sustained growth even amid increased global competition.

The real standout for NSE, however, has been its dominance in the equity derivatives segment. NSE’s share in this market, based on the number of contracts traded, soared from 15.3% in 2014 to 74.4% in 2023 and further to an impressive 82.3% in the first nine months of 2024. During this period, NSE traded a staggering 9,460 crore contracts, far outpacing other exchanges. Brazil’s B3 held a distant second position, with its share shrinking from 6.3% in 2023 to 5.1% in 2024, while the CBOE Global Markets also saw a reduction in its share from 2.2% to 1.6%.

NSE’s remarkable gains, particularly in equity derivatives, are indicative of its strategic positioning and operational efficiency, cementing its status as a global powerhouse in this segment. This growth not only strengthens NSE’s competitive edge but also reinforces India’s rising prominence in the global financial market. As NSE continues to capture market share across equity and derivatives segments, it remains a vital player in the evolving dynamics of global exchanges.

Read More: Spotting Market-Beating Opportunities Like a Pro (Eg. Included)

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