Indian stock exchanges remained closed on January 15 for Brihanmumbai Municipal Corporation (BMC) elections, sparking an unusually sharp debate among the country's most influential market voices. The complete trading suspension across BSE and NSE drew intense scrutiny over exchange operational planning and India's global market credibility.

Kamath Questions Market Closure Logic

Zerodha Co-founder and CEO Nithin Kamath led the criticism, framing the closure as a structural failure rather than routine administrative necessity. He called the move "poor planning" and criticized the "serious lack of appreciation for second-order effects" in a globally connected financial system.

Quoting investor Charlie Munger, Kamath wrote: "Show me the incentive, and I will show you the outcome." He argued that the holiday persists because "no one who matters has any incentive to oppose the market holiday," emphasizing that such decisions highlight "how far we have to go before global investors take us seriously."

Arora Challenges Consistency Arguments

Helios Capital founder Samir Arora responded by questioning the consistency of arguments around trading day fairness. He challenged the selective logic around market operations, asking whether it's "unfair to foreign investors" when Indian exchanges operate on days that are holidays elsewhere.

Arora flagged broader calendar anomalies, particularly around the Union Budget presentation on February 1, questioning why markets should operate on Sunday merely because of budget timing. He emphasized the need for consistent logic in determining trading schedules.

Sharma Takes Tactical View

GQuant Investech founder Shankar Sharma offered a contrasting perspective, arguing that the holiday narrative is overstated. He listed "three clear positives" from the closure, framing it as a tactical buffer against foreign selling pressure.

Sharma argued that if markets were open, foreign institutional investors could have sold "another few thousand crores," suggesting the closure provided temporary market stability during volatile periods.

Broader Market Planning Questions

The debate highlighted fundamental questions about exchange operational planning as India seeks enhanced global market credibility. The National Stock Exchange continues evaluating whether to keep markets open on February 1 for Union Budget presentation, with no final decision announced.

The discussion reflects ongoing challenges in balancing local administrative requirements with international market expectations, particularly as global investors evaluate the consistency and predictability of Indian market operations in an increasingly interconnected financial system.

The National Stock Exchange IPO has moved closer to reality with market regulator SEBI in advanced stages of providing the No-Objection Certificate. Market expert Gurmeet Chadha from Complete Circle positions the upcoming public offering as a long-term compounding story rather than a listing-day trading opportunity.

Current Valuation and Market Position

NSE has demonstrated significant price movement in the unlisted market over recent years. The current trading dynamics reflect investor interest ahead of the public debut.

Chadha notes that at current levels, the stock trades at nearly 40 times earnings, indicating valuations that are "not very cheap" but remain attractive for patient investors. The exchange commands approximately 90% market share across several categories including cash markets, bulk deals, and derivatives.

Investment Perspective and Growth Trajectory

The Complete Circle Managing Partner emphasizes realistic expectations for future returns. NSE has already delivered multi-bagger gains since 2019, but the pace of exponential returns naturally moderates as the business scales up. Customer addition has accelerated sharply in recent years, though the larger base makes 10x returns unlikely from current levels.

"If you have to enter NSE, you have to take a more three to five-year view in terms of holding the stocks. It is a great stock to hold for long-term," Chadha stated. He expects strong interest from large institutions, endowment funds, and long-only investors, describing NSE as a "25-30% compounding machine."

Comparative Valuation Analysis

While NSE's valuation appears reasonable compared to local peers, global comparisons present a different picture. Most international exchanges including Nasdaq and London Stock Exchange trade at cheaper valuations relative to NSE's current metrics.

Business Fundamentals and Diversification

Recent quarterly performance showed profit softness, which Chadha attributes to one-off settlement-related costs and high base effects rather than core business weakness. Transaction charges continue to account for a large revenue share, though NSE is gradually diversifying through new products and platforms.

Emerging growth opportunities include:

• Electricity futures development
• Growing traction on MF Platform 2.0
• Value creation through subsidiaries like NSE Academy
• GIFT City operations expansion

Chadha believes short-term volatility around quarterly numbers should not concern long-term investors, given the robust underlying business fundamentals and the exchange's dominant market position across multiple segments.