NSDL Stock Defies Market Crash, Surges 67% Since Listing Amid Strong Investor Demand

While the broader Indian stock market witnessed a sharp decline on August 8, one newly listed company has continued to buck the trend — National Securities Depository Limited (NSDL). Despite the Sensex falling over 650 points to 79,976.34 by 3 PM, NSDL shares continued their remarkable rally, leaving investors impressed.

Since its listing on August 6, NSDL stock has surged by over 67%, showing no signs of slowing down, even in the face of broader market volatility. The company’s strong fundamentals, investor interest, and leadership in the depository services segment are driving its upward momentum.

NSDL Stock Climbs Despite Market Downturn

On Friday, NSDL shares jumped by 19.2%, reaching an intraday high of Rs 1,339 on the BSE, compared to its IPO price of Rs 800. This brings the total return for IPO investors to 67.4%. The stock, which listed at Rs 880 — a 10% premium over the issue price — has gained 52% from its listing price in just three trading sessions.

This performance is particularly noteworthy considering that most benchmark indices and blue-chip stocks have come under heavy selling pressure due to weak global cues and profit booking.

Three-Day Rally Highlights Strong Confidence

The sharp rise in NSDL shares began on listing day, when the stock touched a high of Rs 920. On Thursday, it hit the upper circuit at Rs 1,123, recording a 20% jump in a single session. The surge has turned the spotlight back on traditionally strong institutional stocks, even in times of market uncertainty.

What’s Driving NSDL's Stock Surge?

Several factors are contributing to this rapid rise in NSDL shares:

Strong Demand in IPO:
NSDL's Rs 4,012 crore IPO was a pure offer for sale and received an overwhelming response, being oversubscribed 41.02 times.

• Qualified Institutional Buyers (QIBs): 103.97 times

• Non-Institutional Investors: 34.98 times

• Retail Investors: 7.76 times

Anchor Investment Support:
The company had already raised Rs 1,201.44 crore via anchor investors on July 29, which boosted market confidence before the official listing.

Strong Market Position:
NSDL is one of India’s top two depositories and holds a dominant position in the institutional depository segment. It provides crucial custodial and depository services to mutual funds, insurance firms, banks, and foreign portfolio investors (FPIs).

Analyst View: Long-Term Hold Recommended

According to Gaurav Garg of Lemon Markets Desk, NSDL’s leadership in the institutional depository space, consistent revenue visibility, and attractive valuation make it a good candidate for long-term investment.

“Given its strong fundamentals and critical role in India’s financial infrastructure, we recommend holding NSDL stock for the long term. The company is well-positioned to benefit from the growth of mutual funds and FPIs in India,” he said in a report to ET.

Conclusion

Even as market sentiment turns bearish, NSDL stock is delivering exceptional returns and catching the attention of both retail and institutional investors. With a combination of strong fundamentals, overwhelming IPO demand, and a favorable market position, NSDL’s post-listing performance is proving that quality stocks can outperform even in weak markets.