BSE witnessed a 7% surge in its shares following an upgrade by brokerage firm Investec from “hold” to “buy,” maintaining a price target of ₹2,800, suggesting a potential upside of 38% from Wednesday’s closing levels.
The decision by Investec is noteworthy as the brokerage had downgraded the stock to “hold” on February 6 but had raised the price target of BSE to current ₹2,800 from the earlier ₹2,345.
Investec’s basis for the upgrade was its performance in equity derivatives volumes, especially options market share, which at 15% tripled sequentially in March 2024.
Investec expects the rising market share to continue, especially on Mondays, with one prominent BANKEX product expected to have 60-70% market share.
Investec also said that BSE’s contribution to the Settlement Guarantee Fund was a one-time cost during the December quarter, and it does not expect such costs to recur.
BSE also cut the clearing charge paid to peer National Stock Exchange by 30% sequentially on a per ₹10 lakh basis. With five out of seven analysts tracking BSE recommending a “buy” rating and the remaining two a “hold” rating, the investor sentiment stays positive.
At 10:42 am BSE shares were trading at ₹2,147.60. The price was higher by 5.63% reflecting Investec’s upgrade.
