Shares of National Stock Exchange of India Ltd NSE declined more than 1.5 percent in Friday's trading session as investors booked profits following the exchange's market debut a day earlier.

The decline reduced NSE's market capitalisation to Rs 4,47,145.88 crore on Friday from Rs 4,49,955 crore at the end of its debut session. This represented a decline of approximately Rs 2,809 crore in market value.

The movement comes after strong investor interest around NSE's long-awaited listing, with the stock attracting attention because of the exchange's dominant position in India's equity market and its exposure to rising trading activity across cash and derivatives segments.

Despite the initial profit booking, brokerages remain constructive on the stock's prospects. Analyst estimates indicate potential upside of as much as 15 percent from current levels, suggesting that the near-term decline has not materially altered expectations around NSE's longer-term earnings potential.

The brokerage outlook is likely to remain closely linked to trading volumes, particularly in the derivatives segment, where NSE has a significant market presence. Higher trading activity can support growth in transaction-related revenue, while continued expansion of India's capital markets could provide additional structural support.

At the same time, the stock's post-listing performance is expected to remain sensitive to valuation and profit-taking following its debut. The decline on Friday highlights the possibility of short-term volatility as investors reassess the stock following its entry into the listed market.

NSE's market debut marks a significant development for India's capital-market infrastructure, giving public-market investors direct exposure to one of the country's largest exchange operators. Future performance will depend on trading volumes, market participation, regulatory developments, operating profitability and the valuation investors assign to its earnings growth.