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VOL. I · EST. 11.2025 
SatyaDheesh
सत्याधीश
India's Ground Truth Record
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NSE becomes world's sixth largest bourse with $47 billion m-cap

GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·

Capital market growth and financialization: a key GS3 economic development topic.

Why in news

The National Stock Exchange (NSE) reached a market capitalization of $47 billion, positioning it as the world's sixth-largest bourse.

Background

NSE reported an operating Ebitda margin of 66.9%, placing it at the upper end of the 53-80% range of the five largest global exchange operators. India's cash market turnover is projected to reach ₹473-507 lakh crore by FY30 from ₹280 lakh crore in FY26.

Facts for Prelims

  • FactNSE operating Ebitda margin: 66.9%
  • FactProjected cash market turnover by FY30: ₹473-507 lakh crore
  • FactProjected annual growth rate of cash market turnover: 14-16%
  • FactNSE market capitalization: $47 billion

Prelims practice question

With reference to the National Stock Exchange (NSE) and India's cash market, consider the following statements:

  1. The operating Ebitda margin of NSE is reported at 66.9%.
  2. NSE has achieved a market capitalization of $47 billion.
  3. The projected cash market turnover by FY30 is expected to reach ₹280 lakh crore.

Which of the statements given above is/are correct?

  1. (a)1 only
  2. (b)2 only
  3. (c)1 and 2 only
  4. (d)1, 2 and 3
Show answer

Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The projected turnover by FY30 is ₹473-507 lakh crore.

For Mains

Q. Discuss the structural factors driving the rapid expansion of India's capital markets and the implications of increasing financialisation of savings on the economy.

Dimensions to cover in your answer

  • Financialisation trend: Shift from physical assets to capital market instruments among retail investors
  • Market depth: Impact of high-growth cash market turnover on domestic liquidity and investment
  • Global positioning: NSE's high P/E multiple and profitability relative to global exchange peers

Keywords: Capital Markets · Financialisation · Market Capitalization · Ebitda Margin · Retail Participation

Read the full news →Report a mistake in this noteSource: Economic Times ↗

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