NSDL Stock Falls 8% from Day’s High After Record Listing Gains

The shares of National Securities Depository Limited (NSDL) witnessed profit booking on August 11, slipping nearly 8% from the day’s high after a record post-listing rally of around 62%.

At 11:42 am, NSDL shares were trading about 1% higher at ₹1,315 apiece. Earlier in the day, the stock had surged nearly 10% to ₹1,425 before retreating sharply.

Strong Market Debut and Rapid Gains

NSDL made its stock market debut on August 6, listing at ₹880 per share on the BSE — a 10% premium over its IPO price. While the listing premium was lower than grey market expectations, the stock quickly gained momentum in subsequent sessions.

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Valuations Running Ahead of Peers

NSDL’s current P/E ratio stands at around 79, significantly higher than peer CDSL’s 66.
“As one of only two depositories in a near-duopoly with CDSL, NSDL enjoys strong pricing power, high entry barriers, and a dominant share in institutional holdings,” said Bhavik Joshi, Business Head at INVasset PMS.
He added that while valuations may seem stretched, investors are willing to pay a premium for NSDL’s scale, technology edge, and trust factor. However, he cautioned about structural risks like dependence on transaction volumes and regulatory compliance needs.

Experts Divided on Next Move

Market analysts believe short-term gains could be capped after the sharp rally.
Nitin Jain of Bonanza advised short-term investors to book profits, citing likely consolidation. For long-term investors, he believes NSDL remains a quality pick backed by rising demat penetration.

Market expert Ambareesh Baliga suggested that IPO investors could shift back to CDSL after booking profits, noting heavy participation from momentum traders. Similarly, Sunny Agarwal of SBI Securities recommended using dips to accumulate for the long term, but taking profits in the short term.

Key Highlights:

• NSDL stock falls 8% from day’s high after sharp post-listing gains.

• P/E ratio at 79, higher than CDSL’s 66.

• Experts recommend profit booking for short-term traders and accumulation on dips for long-term investors.

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