A day after Goldman Sachs initiates coverage, Jefferies upgrades BSE stock with a target price of ₹5,250

Jefferies has upgraded BSE to a ‘Hold’ rating with a target price of ₹5,250, citing better-than-expected resilience in premium volumes following SEBI’s new F&O measures.

Jefferies has upgraded BSE to a ‘Hold’ rating with a target price of ₹5,250, citing better-than-expected resilience in premium volumes following SEBI’s new F&O measures. The brokerage noted that while option volumes have declined by 70%, premiums have fallen by less than 10% month-to-date in January (versus Jefferies’ estimate of ~25%), as traders and hedgers adjust with larger average ticket sizes.

Jefferies sees this shift benefitting exchanges like BSE, which can capitalize on stable top-lines and enjoy 5–10 percentage points of margin expansion due to the improved quality of premiums. However, the outlook for discount brokers remains challenging, with volumes potentially declining by over 40% unless they implement significant price hikes.

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The brokerage views the evolving market dynamics as a positive for exchanges like BSE, allowing them to leverage operational efficiencies even as trading patterns shift under SEBI’s new framework.