New Delhi, Nov. 2 -- The National Stock Exchange of India (NSE) may be approaching a new phase of growth as more Indian households move their savings into financial markets. That is the central investment case made by global brokerages Morgan Stanley and JPMorgan, which have initiated coverage on the exchange with Overweight ratings, betting on its market dominance and the long-term expansion of India's capital markets.

NSE shares were trading largely flat on Monday, 2 November, despite the positive brokerage calls. Morgan Stanley has set a price target of Rs.2,315 per share, implying an upside of around 30% from Friday's closing price. JPMorgan has assigned a target of Rs.2,130, indicating a potential upside of nearly 20%.

Both brokera...