NSE likely to overtake BSE in marketcap

Written by Press Trust of India | New Delhi | Updated: Aug 10 2009, 06:04am hrs
Riding on superior technology and FII preference, the National Stock Exchange (NSE) is expected to surpass its older counterpart, the Bombay Stock Exchange (BSE), in market capitalisation this year for the first time in history.

According to a report by global consultancy Celent, 2009 would be the first year when NSEs market capitalisation is expected to exceed that of BSE.

NSE is expected to overtake BSE in market capitalisation in 2009. Already far ahead in turnover, NSE is expected to further its lead over its older counterpart, the report titled, 'Indian Exchange-Traded Securities: Poised for Further Growth' stated.

NSE's market capitalisation stood at Rs 47,01,923 crore at the end of trade on Friday last week, not far behind the Bombay Stock Exchange's valuation of Rs 50,12,966.76 crore, according to data available on the two bourses.

In terms of the relative size of the two main Indian equity markets, NSE has become the exchange of choice, it added.

According to Celent estimates, the market turnover of NSE for 2009 would be more than two times the turnover of Bombay Stock Exchange.

On August 7, NSE turnover in value terms was around Rs 17,650 crore as against BSE's about Rs 5,443 crore.

This is creditable considering that NSE has been functioning only since 1994 compared to more than 130 years of BSE's existence, the report added.