Bahrain-based Investcorp will buy the digital technology services business of India's National Stock Exchange (NSE) for $120 million, the alternative investment firm said on Monday, in its biggest deal in the country.

NSEIT Ltd, the digital technology arm of India's largest stock market operator, offers services in areas including cybersecurity, digital transformation and cloud services in India, North America and the Middle East.

The 10-billion-rupees deal was in line with NSE's strategy to focus on its core business areas, said Ashish Kumar Chauhan, the company's managing director and CEO.

The deal excludes NSEIT's digital examination business, which offers online recruitment and promotion tests as well as digital upskilling services for corporates.

"It is a significant step in our expansion efforts in India and it underscores our commitment to investing in high-growth sectors," Gaurav Sharma, head of India Investment Business at Investcorp, said in a statement.

Investcorp, which has over $52 billion in assets under management globally, has invested in Indian companies such as luggage maker Safari Industries, financial services company InCred and mattress maker Wakefit, among others. ($1 = 83.4406 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Savio D'Souza)