National Stock Exchange shares experienced a significant rally in unlisted trading, surging 6% to cross the ₹2,000 threshold after regulatory clarity emerged regarding the exchange's much-anticipated initial public offering.

Share Price Movement and Trading Activity

NSE shares demonstrated strong momentum in Monday's unlisted trading session, with increased investor interest driving both price appreciation and trading volumes.

Sandip Ginodia, director at Altius Investech, noted a "pick-up in incremental demand and higher trading volumes in NSE shares over the weekend" following the regulatory developments.

SEBI's IPO Approval Update

The rally was triggered by comments from SEBI chairperson Tuhin Kanta Pandey, who indicated significant progress on NSE's IPO approval process. According to ANI reports, Pandey stated that the regulator is at a "very advanced stage" of granting the no-objection certificate for NSE's IPO, with potential clearance expected in January.

This development has rekindled investor interest in NSE shares, which have faced prolonged uncertainty regarding the IPO timeline.

Recent Performance Challenges

NSE shares have encountered significant headwinds in recent months, primarily stemming from regulatory changes and delayed IPO approval. The stock has predominantly traded below ₹2,000 since September, reflecting investor concerns about multiple factors affecting the exchange's business.

Hitesh Dharawat of Dharawat Securities highlighted the stock's volatility, noting that "NSE shares had rallied to around ₹2,400 last year before correcting to nearly ₹1,800 following the announcement of Q2 results and increasing derivative curbs from the regulator."

Regulatory Impact on Business Operations

SEBI's regulatory measures have created operational challenges for NSE, particularly in the derivatives segment. The regulator implemented several changes that have affected trading volumes and revenue generation:

• Ban on multiple weekly derivatives contracts from exchanges in November 2024
• Increased minimum contract sizes
• Enhanced regulatory oversight of equity derivatives market

These measures have resulted in reduced trading volumes and corresponding revenue impacts at the exchange level.

Market Expert Perspectives

Market analysts present divergent views on NSE's current valuation and future prospects. Dharawat expressed caution about the sustainability of current price levels, stating, "With expectations of dull Q3, we believe the current price levels may not be sustainable. The fair value of the shares lies in the ₹1,500-₹1,800 range, due to the recent limited growth in the capital markets segment."

Conversely, Ginodia maintains an optimistic outlook for post-listing performance. He emphasized that "NSE is currently trading at a discount to BSE and will list on the BSE. Given the possibility of a higher free float and potential inclusion in the Sensex from listing, the stock could see strong buying from passive funds post-listing."

The National Stock Exchange of India has declared a complete trading holiday on Thursday, January 15, 2026, due to the Brihanmumbai Municipal Corporation elections in Mumbai. The announcement, made through an official circular on Monday, represents a significant expansion from the exchange's initial plans.

Market Closure Details

The NSE confirmed that multiple trading segments will remain shut on the election day. The closure encompasses the capital markets segment, commodity derivatives trading, and the futures and options segment. This comprehensive shutdown marks a departure from the exchange's earlier announcement, which had designated January 15 as a holiday only for the debt and currency trading segments.

Official Notification

In its latest circular, the NSE stated: "In partial modification to Exchange circular reference no. NSE/CMTR/71775, the Exchange hereby notifies Thursday, January 15, 2026 as a trading holiday in Capital Market (CM) Segment on account of Municipal Corporation Election in Maharashtra." This modification significantly broadens the scope of the market closure beyond the initially planned segments.

Election Coverage Area

The municipal corporation elections will extend beyond Mumbai to include neighboring satellite cities. Thane and Navi Mumbai will also conduct their municipal corporation elections on January 15, 2026. This regional election coverage provides context for the exchange's decision to implement a comprehensive trading holiday.

Historical Precedent

The current announcement differs from the exchange's approach during previous BMC elections. In 2017, when the last civic polls were held, both NSE and BSE had announced only a trading holiday for the currency derivatives segment and a settlement holiday for the equity market. During settlement holidays, equity trading continues while the clearing and settlement processes are paused, typically due to bank or depository closures.

Settlement vs Trading Holidays

The distinction between settlement and trading holidays affects market operations differently. On settlement holidays, stock markets remain open for equity trading, but the transfer of shares and funds between buyers and sellers is suspended. This results in delayed delivery of shares to demat accounts and delayed credit of funds to bank accounts until the next business day.