NSDL shares end lower for the first time after listing; Analysts advise whether one should book profits

Shares of Securities Depository Ltd. (NSDL) have declined as much as 10% from the intraday highs that it made on Monday, August 11. Until a few minutes earlier, the stock had traded with gains for the fourth consecutive day after listing before the fall.

At the intraday high of ₹1,425, the stock had gained as much as 80% from its issue price of ₹800, within four trading sessions.

On its trading debut last Wednesday, NSDL had seen as many as 3.7 crore shares change hands, while Thursday's session had seen 5.1 crore shares change hands. Today's trading session has already seen 2.5 crore shares of the stock changing hands within the first three hours of the trading session.

In an interaction with CNBC-TV18 after listing, the management of NSDL mentioned that their focus will be to increase market share in the retail segment, and that both arms are presenting good growth opportunities on an individual basis.

With the kind of upmove seen in NSDL, should investors book profits? Here's what analysts had to say:

"At the IPO price, NSDL was definitely cheaper compared to CSDL but now it is expensive after the recent run-up. I think along with long investors shifting from CDSL to NSDL post listing, we have seen huge number of momentum trader getting in, which has pushed the stock higher. So, it will be ideal for IPO investors to book profits at current levels and make a shift back to CDSL," Ambareesh Baliga, Market Expert told CNBC-TV18 on Monday.

Sunny Agarwal of SBI Securities also spoke to CNBC-TV18 and mentioned that one can definitely book profits in case they had a short-to-medium-term horizon on NSDL with the gains that they have made. However, for long-term investors, any potential decline could act as a good opportunity to accumulate the stock for the portfolio.

Shares of NSDL are off the highs of the day, currently trading 0.6% higher at ₹1,308.95, having made an intraday low of ₹1,272.

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