Jefferies initiates India's NSE with 'buy', says offers hedge against volatility

** Brokerage Jefferies initiates coverage on National Stock Exchange of India NSEI.BO with a "buy" rating and a PT of 2,085 rupees

** "NSE combines market leadership, structural growth, diversification and a natural hedge against volatility," says Jefferies

** With regulatory headwinds in the past, we expect a 15% revenue CAGR over FY27-29e: Brokerage

** "India has seen a c.4x increase in direct equity investors since COVID, led by younger cohorts. Yet, penetration is only 3% of the population vs 18% in China, Jefferies says

** Indian exchanges offer a volatility hedge, as revenue is positively correlated with the CBOE Market Volatility Index .VIX, given that options revenue is premium-based, unlike that of global peers - Jefferies

** Shares of NSEI up 0.9% at 1,792.20 rupees

** NSEI stock down 1.4% since listing on September 24