BSE shares fall 5% after NSE gets Tuesday expiry, brokerages expect volume impact and market share loss
Shares of BSE Ltd dropped 5.23% to ₹2,525 on Wednesday, reacting sharply to SEBI's new directive that assigns Thursday as the expiry day for the exchange's equity derivative contracts starting September 1, 2025. The move is expected to hit BSE's growing index derivatives business, prompting analysts to revise projections.
Later the shares recovered to nearly 3% off day's low and as of 9:20 am the stock was trading 1.22% lower at Rs 2,632.00
Leading brokerages such as Motilal Oswal and Goldman Sachs have downgraded their expectations. Motilal Oswal cut its earnings estimates for BSE by 9% for FY26 and 12% for FY27, slashing the target price to ₹2,300, down from ₹2,600. The brokerage sees the expiry shift leading to a 350–400 bps market share loss in index options.
Goldman Sachs echoed similar concerns, trimming its target price to ₹2,430 while estimating a 3 percentage point drop in market share, even though the firm noted rising participation and long-term confidence in BSE's derivatives platform.
Analysts also flagged stretched valuations—BSE currently trades at over 53x FY27 projected earnings—which, combined with earnings downgrades, increases downside risk in the near term.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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