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News18
a day ago
- Business
- News18
BSE Share Price Falls 8% From Record High; Should You Buy, Sell Or Hold?
Last Updated: Shares of BSE Ltd. continued to decline for the second consecutive session on Thursday; What should investors do now? BSE Shares BSE Share Price: Shares of BSE Ltd. continued to decline for the second consecutive session on Thursday, falling as much as 4.24% to Rs 2,760 apiece on the NSE. The stock has now dropped over 8% from its record high of Rs 3,030, hit on June 10, 2025, as investors rushed to book profits after a sharp rally. Pressure from Surveillance Framework The recent sell-off follows BSE's inclusion in the Additional Surveillance Measure (ASM) list by the NSE. The move, aimed at curbing speculative trading, mandates a 100% margin requirement for trading the stock. This heightened scrutiny has weighed on sentiment, especially after BSE surged nearly 140% from its March 2025 lows, driven by rising interest in equity derivatives and buzz around NSE's potential IPO. Elevated Valuations Raise Red Flags At a market cap of around Rs 1.13 lakh crore, BSE is currently trading at a significant premium to its BFSI peers. Analysts have raised caution flags, pointing to a FY27E price-to-earnings (P/E) ratio of 35.1x—well above sector norms. 'Despite strong FY25 numbers, BSE's dependence on volatile trading volumes and high settlement costs make its current valuation difficult to justify," said Arihant Capital in a note. The firm flagged potential risks from macroeconomic uncertainty, competitive pressures, and inconsistent profitability. The brokerage also warned that geopolitical tensions could impact market sentiment and, in turn, BSE's performance. Additionally, though the company announced a healthy dividend of Rs 23 per share (28.4% of FY25 profits), analysts question the sustainability of such payouts amid rising infrastructure investments. Given the risks and stretched valuations, Arihant Capital has issued a 'Sell' rating on the stock, suggesting investors reallocate capital to more stable BFSI stocks. Ruchit Jain of Motilal Oswal also expects a short-term correction. 'Momentum indicators are in overbought territory. A decline to the 20-day exponential moving average near Rs 2,650 seems possible. A breach there could push it down further to Rs 2,500," he added.
Mint
a day ago
- Business
- Mint
BSE share price slips 8% from record high; analysts cite valuation risks. Buy, sell or hold?
BSE share price declined over 4% on Thursday, extending losses for the second session, as investors booked profits following a sharp rally. BSE shares fell as much as 4.24% to an intraday low of ₹ 2,760.00 apiece on the NSE. The fall in BSE share price today follows a 4% drop in the previous trading session. BSE share price hit a record high of ₹ 3,030 apiece on 10 June 2025, and is down more than 8% from that level. BSE shares came under selling pressure after being placed under the Additional Surveillance Measure (ASM) framework by the National Stock Exchange to curb speculative activity. The move mandates a 100% margin requirement for trading in BSE shares, which are listed on its privately held rival exchange, NSE. The action follows a nearly 140% rally in BSE's share price since its March 2025 low, driven by increased traction in India's equity derivatives market and optimism surrounding NSE's potential initial public offering (IPO). At a market capitalisation of around ₹ 1.13 lakh crore, BSE shares are trading at a premium to its peers in the BFSI sector. Analysts have turned cautious on the BSE stock, citing elevated valuations and associated risks. BSE is currently trading at a stretched valuation, with a projected FY27E price-to-earnings (P/E) multiple of 35.1x—significantly higher than sector averages. Analysts at Arihant Capital believe such valuations are unjustified given the company's reliance on external factors and exposure to market volatility. 'Despite strong financial performance in FY25, BSE Ltd.'s reliance on volatile trading volumes, high settlement costs, and stretched valuations make it a risky investment at current levels. The company's growth prospects are overshadowed by macroeconomic uncertainties and competitive pressures,' Arihant Capital said in a note. BSE's equity derivatives segment has been a key growth driver, with average daily premiums turnover rising 293.3% year-on-year. However, this growth remains highly sensitive to broader market sentiment and volatility. The fluctuations seen in Q4 FY25 underscore the instability of this revenue stream, Arihant Capital noted. Additionally, a significant portion of clearing charges is paid to National Clearing Corporation Ltd. (NCL), impacting BSE's profitability. While negotiations are underway to reduce these costs, the outcome remains uncertain, posing a risk to margin expansion. The brokerage also flagged concerns about external headwinds, including global geopolitical tensions, which could weigh on BSE's performance despite the broader resilience of Indian capital markets. Moreover, the proposed dividend payout of ₹ 23 per share (28.4% of annual profits) reflects strong financials but raises concerns about capital allocation. Continued infrastructure investments may strain cash flows, limiting flexibility for future growth initiatives, said the brokerage report. Given these concerns, Arihant Capital recommends a 'Sell' rating on BSE shares and suggests investors to consider reallocating to more stable and diversified opportunities within the BFSI sector. BSE share price is exhibiting signs of topping out near ₹ 2,980, with the stock significantly extended from its daily 50-day and weekly moving averages, noted Anshul Jain, Head of Research at Lakshmishree Investments. 'Such overextension often precedes a mean reversion phase. Given the current setup, a pullback towards the previous swing low of ₹ 2,385 appears highly likely. Traders should exercise caution at elevated levels and watch for bearish price action confirmation before initiating short positions,' Jain said. Echoing a cautious view, Ruchit Jain, Vice President – Equity Technical Research at Motilal Oswal Financial Services, pointed out that following a sharp rally of nearly 140%, the momentum indicators have moved into overbought territory, suggesting the possibility of a time-wise correction. 'We may see a pullback in BSE shares upto 20-day exponential moving average (DEMA) which is placed at ₹ 2,650 level. A breach of this support could open the door for further downside towards ₹ 2,500,' he said. At 12:00 PM, BSE share price was trading 4.08% lower at ₹ 2,764.90 apiece on the NSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
a day ago
- Business
- Time of India
BSE shares slide over 7% in 2 days after ASM tag triggers profit booking
Shares of BSE have declined sharply over two consecutive sessions, falling a combined 7.3% as of Thursday, after the stock was placed under the Additional Surveillance Measure (ASM) framework by the National Stock Exchange. The regulatory action has triggered profit-taking and heightened investor caution. On Thursday, the stock fell as much as 3.3% to Rs 2,786.80 on NSE, extending Wednesday's 4% drop when it touched an intraday low of Rs 2,885.20. These declines follow a period of strong gains, with the stock rallying 120% over the past three months and 213.6% over the past year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Honor a Forgotten Father Today HelpAge India Donate Now Undo BSE was placed under the ASM framework on Wednesday—a move that typically signals increased regulatory oversight due to sharp price movements or unusual trading volumes. The ASM framework, designed to maintain market integrity, entails heightened monitoring, higher margin requirements, and possible restrictions on intraday trading. The stock's inclusion in the ASM list follows a sharp one-month gain of nearly 27.5% and a six-month rise of 51%, alongside elevated trading volumes. Exchanges typically intervene when price movements are not supported by fundamentals or when there is a significant spike in trading activity. While the ASM tag does not imply any wrongdoing, it tends to dampen speculative sentiment by making trading more expensive and riskier. Technical Indicators Show Mixed Signals Live Events Despite the recent pullback, BSE's broader technical setup indicates underlying strength. The stock continues to trade above seven of its eight key simple moving averages (SMAs)—from the 10-day to the 200-day—but has slipped below the 5-day SMA, reflecting near-term weakness. The Relative Strength Index (RSI) currently stands at 69.5, just below the overbought threshold of 70. The Moving Average Convergence Divergence (MACD) remains in bullish territory at 202.4, above both its center and signal lines. Fundamentals Remain Robust The recent rally in BSE shares was underpinned by strong Q4 earnings. The exchange posted a 362% year-on-year jump in net profit to Rs 494 crore for the January–March 2025 quarter, while revenue from operations rose 75% to Rs 847 crore. Operating EBITDA soared to Rs 594 crore from Rs 95.7 crore a year earlier, with margins expanding to 70%. A major growth driver was transaction charges, which more than doubled to Rs 612 crore from Rs 288 crore. Investment income increased modestly to Rs 70 crore from Rs 55.2 crore in Q3 FY25, while treasury income fell to Rs 44.3 crore from Rs 58 crore a year ago. The company also declared a total dividend of Rs 23 per share—comprising a special dividend of Rs 5 to commemorate BSE's 150th anniversary, and a regular dividend of Rs 18. In its earnings statement, the company said it aims to expand its market share across segments by 'capitalising on the rapid rise in investor participation and overall market turnover in India.' Also read | IT stocks drag Sensex 100 pts lower, Nifty below 25,100 ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
a day ago
- Business
- Economic Times
BSE shares slide over 7% in 2 days after ASM tag triggers profit booking
Shares of BSE have declined sharply over two consecutive sessions, falling a combined 7.3% as of Thursday, after the stock was placed under the Additional Surveillance Measure (ASM) framework by the National Stock Exchange. The regulatory action has triggered profit-taking and heightened investor caution. ADVERTISEMENT On Thursday, the stock fell as much as 3.3% to Rs 2,786.80 on NSE, extending Wednesday's 4% drop when it touched an intraday low of Rs 2,885.20. These declines follow a period of strong gains, with the stock rallying 120% over the past three months and 213.6% over the past year. BSE was placed under the ASM framework on Wednesday—a move that typically signals increased regulatory oversight due to sharp price movements or unusual trading volumes. The ASM framework, designed to maintain market integrity, entails heightened monitoring, higher margin requirements, and possible restrictions on intraday trading. The stock's inclusion in the ASM list follows a sharp one-month gain of nearly 27.5% and a six-month rise of 51%, alongside elevated trading volumes. Exchanges typically intervene when price movements are not supported by fundamentals or when there is a significant spike in trading activity. While the ASM tag does not imply any wrongdoing, it tends to dampen speculative sentiment by making trading more expensive and the recent pullback, BSE's broader technical setup indicates underlying strength. The stock continues to trade above seven of its eight key simple moving averages (SMAs)—from the 10-day to the 200-day—but has slipped below the 5-day SMA, reflecting near-term weakness. ADVERTISEMENT The Relative Strength Index (RSI) currently stands at 69.5, just below the overbought threshold of 70. The Moving Average Convergence Divergence (MACD) remains in bullish territory at 202.4, above both its center and signal lines. The recent rally in BSE shares was underpinned by strong Q4 earnings. The exchange posted a 362% year-on-year jump in net profit to Rs 494 crore for the January–March 2025 quarter, while revenue from operations rose 75% to Rs 847 crore. ADVERTISEMENT Operating EBITDA soared to Rs 594 crore from Rs 95.7 crore a year earlier, with margins expanding to 70%. A major growth driver was transaction charges, which more than doubled to Rs 612 crore from Rs 288 income increased modestly to Rs 70 crore from Rs 55.2 crore in Q3 FY25, while treasury income fell to Rs 44.3 crore from Rs 58 crore a year ago. The company also declared a total dividend of Rs 23 per share—comprising a special dividend of Rs 5 to commemorate BSE's 150th anniversary, and a regular dividend of Rs 18. ADVERTISEMENT In its earnings statement, the company said it aims to expand its market share across segments by 'capitalising on the rapid rise in investor participation and overall market turnover in India.' Also read | IT stocks drag Sensex 100 pts lower, Nifty below 25,100 (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
2 days ago
- Business
- Mint
BSE share price plummets 5% after inclusion in ASM framework, snaps 9-day winning run
BSE share price in focus today: Shares of BSE Ltd, one of Asia's oldest stock exchanges, plunged 5% in intraday trade on Wednesday, June 11, hitting a low of ₹ 2,855 after being placed under the Additional Surveillance Measure (ASM) framework. The move aims to caution investors and curb speculative activity following a sharp rally in the bourse's stock price. Today's decline also snapped the stock's nine-day winning streak.
