BSE shareholders in a fix: Two downgrades in two days; where is the stock headed?
Brokerage Nuvama Institutional Equities lowered its stance on BSE to "hold" from "buy". It also cut its target price on the stock by 21% to Rs 3,240.
- Aug 18, 2026,
- Updated Aug 18, 2026 4:00 PM IST
Shares of BSE Ltd, Asia's oldest bourse, fell 3% to a four-month low on Tuesday after the stock received its second downgrade in two days. Brokerage Nuvama Institutional Equities lowered its stance on BSE to "hold" from "buy". It also cut its target price on the stock by 21% to Rs 3,240. Nuvama cited the impact of closing auction session on option volumes, tighter bank guarantee norms, and market-share gains nearing saturation levels as factors for the downgrade.
Nuvama also pared its earnings per share (EPS) view on the stock by 6.3% for financial year 2026-27 (Apr-Mar) and 15% for FY28.
On Monday, global brokerage Jefferies downgraded the stock to "underperform" and cut its target price by 16%.
The brokerage cited concerns over the closing auction session (CAS), a higher securities transaction tax and the RBI's revised bank-guarantee norms as the reasons behind its downgrade. Analysts led by Supratim Datta said these factors could weigh on BSE's revenue from domestic proprietary traders.
Jefferies analysts said that BSE's options average daily turnover has fallen 12 per cent in August from the previous month, compared with a 14 per cent fall for unlisted peer NSE. It also said BSE's market-share gains beyond T-0 and T-1 days had been slow, Bloomberg reported.
Following the development, the stock fell 2.9 per cent to a four month low of Rs 3,235. This was the fifth day of successive fall for the stock. Market cap of the bourse fell to Rs 1.34 lakh crore.
Jefferies pared its FY27-FY29 earnings-per-share estimates by 5-12 per cent and reduced its price target to Rs 2,940, implying around 15 per cent downside from Friday's close. The downgrade by the global brokerage comes a week after 360 One Capital Markets and ICICI Securities suggested 'Hold' on the stock with targets of Rs 3,765 and Rs 3,530, respectively.
On August 6, ICICI Securities said BSE enjoyed strong prospects of volume growth across segments namely options, cash, and the MF platform, led by derivatives, which has been its key investment thesis for the stock.
Shares of BSE Ltd, Asia's oldest bourse, fell 3% to a four-month low on Tuesday after the stock received its second downgrade in two days. Brokerage Nuvama Institutional Equities lowered its stance on BSE to "hold" from "buy". It also cut its target price on the stock by 21% to Rs 3,240. Nuvama cited the impact of closing auction session on option volumes, tighter bank guarantee norms, and market-share gains nearing saturation levels as factors for the downgrade.
Nuvama also pared its earnings per share (EPS) view on the stock by 6.3% for financial year 2026-27 (Apr-Mar) and 15% for FY28.
On Monday, global brokerage Jefferies downgraded the stock to "underperform" and cut its target price by 16%.
The brokerage cited concerns over the closing auction session (CAS), a higher securities transaction tax and the RBI's revised bank-guarantee norms as the reasons behind its downgrade. Analysts led by Supratim Datta said these factors could weigh on BSE's revenue from domestic proprietary traders.
Jefferies analysts said that BSE's options average daily turnover has fallen 12 per cent in August from the previous month, compared with a 14 per cent fall for unlisted peer NSE. It also said BSE's market-share gains beyond T-0 and T-1 days had been slow, Bloomberg reported.
Following the development, the stock fell 2.9 per cent to a four month low of Rs 3,235. This was the fifth day of successive fall for the stock. Market cap of the bourse fell to Rs 1.34 lakh crore.
Jefferies pared its FY27-FY29 earnings-per-share estimates by 5-12 per cent and reduced its price target to Rs 2,940, implying around 15 per cent downside from Friday's close. The downgrade by the global brokerage comes a week after 360 One Capital Markets and ICICI Securities suggested 'Hold' on the stock with targets of Rs 3,765 and Rs 3,530, respectively.
On August 6, ICICI Securities said BSE enjoyed strong prospects of volume growth across segments namely options, cash, and the MF platform, led by derivatives, which has been its key investment thesis for the stock.