Mumbai, March 28 Bombay Stock Exchange (BSE) Limited's share price surged over 16 per cent on Friday after the Securities and Exchange Board of India (SEBI) proposed standardising expiry days for equity derivatives across exchanges.
Following the move of the market regulator, the shares of BSE climbed 16.09 per cent or Rs 753.65 to close the day at Rs 5,438 on the National Stock Exchange (NSE), crossing its 200-day moving average.
The market regulator suggested that all exchanges must choose either Tuesday or Thursday as the expiry day for their derivatives contracts, including stock and index options and futures.
This move aims to bring predictability for traders, reduce concentration risk, and improve market stability.
According to a consultation paper issued by SEBI, exchanges will have to select one of the two days and apply it uniformly to all their contracts.
Analysts at Jefferies believe that this proposal could be beneficial for BSE. If the NSE reverts to Thursday expiries and BSE continues with Tuesday expiries, it may ease concerns about BSE losing market share.
The brokerage noted that the impact on BSE’s earnings per share, estimated at 12 per cent, could be lower than previously feared. However, there is still a lack of clarity regarding open interest limits.
With BSE's stock regaining most of its recent losses, analysts suggest that lower regulatory risks and better market conditions could lead to a re-rating of the stock.
Over the past year, BSE’s stock has gained 104 per cent, although it has fallen 3 per cent since the start of this year.
Trading activity in the stock was significantly high, with volume reaching 5.5 times its 30-day average. The stock’s relative strength index (RSI) stood at 60, indicating strong momentum.
According to reports, analysts tracking BSE stock are bullish on the outlook. The average 12-month price target set by them indicates a potential rise of 14 per cent from current levels.
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