India's capital market infrastructure companies have emerged as the unexpected champions of the country's equity market boom, mirroring the historical success of those who sold picks and shovels during the California Gold Rush rather than mining gold themselves. These behind-the-scenes players are now reaping extraordinary rewards from India's deepening equity culture and the massive surge in retail investor participation.

Record-Breaking Performance Metrics

BSE has achieved the distinction of being India's fastest wealth creator in the post-COVID era, according to Motilal Oswal's 30th Annual Wealth Creation Study. The exchange's remarkable performance stands out even among high-growth sectors.

The broader infrastructure ecosystem has witnessed equally impressive growth across multiple parameters. Mutual fund assets under management expanded dramatically from ₹12.75 trillion in December 2015 to over ₹80 trillion by December 2025, representing a more than sixfold increase within a decade.

Market Infrastructure Ecosystem Structure

India's capital market infrastructure comprises four key segments, each playing a crucial role in the financial ecosystem. Brokers form the front-end interface, facilitating trading through platforms and earning revenue via brokerage fees and commissions. The post-COVID boom has been largely driven by discount brokers like Zerodha, Groww, and Upstox, which now account for over 60% of active demat accounts.

Stock exchanges provide the organized trading platforms where securities are listed and priced. The National Stock Exchange holds a commanding 90% share in the cash segment and maintains a virtual monopoly in futures trading, while BSE, Asia's oldest bourse founded in 1875, has been making strategic inroads. The commodity segment includes Multi Commodity Exchange of India and National Commodity and Derivatives Exchange.

Depositories maintain electronic custody of securities through a duopoly structure featuring National Securities Depository Ltd and Central Depository Services Ltd. Registrar and Transfer Agents, led by CAMS and KFin Technologies, serve as the administrative backbone handling shareholder registers and corporate actions.

Investment Appeal and Strategic Advantages

Capital market infrastructure players offer compelling investment characteristics through their asset-light, scalable business models. These companies benefit from strong regulatory moats, network effects, and annuity-like revenue streams that typically generate high return on equity with limited balance-sheet risk.

"Capital market infrastructure players offer a compelling long-term growth story, driven by the deepening equity culture and financialization of household savings," explains Sneha Poddar, vice president of research at Motilal Oswal Financial Services.

Within the ecosystem, depositories and RTAs are viewed as relatively defensive compounders, with growth driven by account proliferation and AUM expansion rather than daily trading volatility. Exchanges remain structurally strong but carry higher regulatory and product concentration risks given derivatives' dominance in industry economics.

Exchange Performance and Market Dynamics

Stock exchanges have delivered exceptional returns, with BSE shares jumping 50% in 2025 during a largely sideways market. Multi Commodity Exchange performed even more impressively, soaring nearly 80% over the same period. The anticipated NSE IPO represents one of the year's most watched market events.

The exchanges benefit from explosive derivatives activity, where India ranks among the largest global markets by contract volumes. Every incremental trade directly increases exchange revenue while costs remain largely fixed, creating powerful operating leverage and margin expansion.

Risk Factors and Market Considerations

Despite strong fundamentals, the sector faces several risk factors. Regulatory intervention poses the primary concern, particularly around derivatives trading which accounts for 70-80% of exchange and broker revenues. SEBI has implemented measures including increased minimum contract sizes, upfront option premium payments, and limited weekly expiry contracts.

According to Jefferies analysis, a 10% decline in options revenue could adversely impact earnings by 7-8%, while a shift from weekly to fortnightly or monthly index option expiries could reduce earnings by 20-50%. Market downturns affect different segments variably, with exchanges and brokers being most cyclical due to volume-linked revenues, while depositories remain relatively insulated through annuity-like fee structures.

The structural transformation of India's financial landscape from episodic to rule-based investing, evidenced by SIP flows crossing ₹31,000 crores monthly, suggests the sector's long-term growth trajectory remains intact despite near-term regulatory and market risks.

BSE has reported a remarkable surge in Sensex open interest following a strategic reshuffle in its trading schedule. The exchange witnessed Sensex contracts increase almost four times, demonstrating significant growth in market participation and trading activity.

Dramatic Increase in Open Interest

The most notable development has been the substantial rise in Sensex open interest figures. The data shows a remarkable transformation in trading volumes following the implementation of schedule changes.

Impact of Expiry Day Shift

The surge in open interest has been directly attributed to the strategic decision to move the expiry day from Tuesday to Thursday. This change appears to have created more favorable trading conditions, encouraging increased participation from market participants. Weekly options have emerged as the leading contributor to the enhanced trading volumes, indicating strong investor interest in short-term derivative instruments.

Market Response and Trading Activity

The reshuffle has generated a positive response from the trading community, with weekly options leading the charge in driving overall trading volumes. The shift in expiry timing has provided traders with better alignment to market dynamics and trading preferences, resulting in the substantial increase in contract volumes. This development reflects the exchange's ability to adapt its operations to meet evolving market needs and enhance liquidity in Sensex derivatives.