BSE enters Nifty 50 with passive flow boostLive EventsBrokerages flag CAS, regulatory headwindsas a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelBSE shares rose over 2% on Tuesday as the stock prepares to enter the benchmark Nifty 50 index from Wednesday, September 30, replacing Wipro as part of the NSE ’s semi-annual index rebalancing.The inclusion is expected to bring significant passive buying interest in BSE.
However, it sees the Closing Auction Session, or CAS, as a near-term drag.Jefferies has a more cautious view on BSE, with an Underperform rating and a Rs 2,940 target price.
The brokerage has flagged BSE’s exposure to domestic proprietary traders, who account for around 50% of notional turnover.
BSE’s index option premium volumes, or ADPTV, stood at Rs 18,100 crore, the lowest since January 2025.The brokerage also flagged RBI’s bank guarantee norms and said BSE’s contract share of nearly 51.5% is already high, while ADPTV share remains lower at around 36%, limiting incremental upside from further share gains.
BSE enters Nifty 50 with passive flow boost
Live Events
Brokerages flag CAS, regulatory headwinds
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BSE shares rose over 2% on Tuesday as the stock prepares to enter the benchmark Nifty 50 index from Wednesday, September 30, replacing Wipro as part of the NSE ’s semi-annual index rebalancing.The inclusion is expected to bring significant passive buying interest in BSE. Axis Capital estimates that index funds could buy around 15.7 million BSE shares, translating into potential inflows of $657 million.BSE’s entry into the Nifty 50 follows a six-month average free-float market capitalisation of Rs 1,40,879 crore, which was at least 1.5 times that of Wipro, the smallest constituent in the eligible universe.The index inclusion comes as brokerages remain divided on the stock’s outlook, with BSE’s growth opportunity weighed against regulatory changes and recent developments affecting trading activity.Macquarie initiated coverage on BSE last week with an Outperform rating and a target price of Rs 4,000. The brokerage tagged BSE as a ‘Challenger’, noting that the stock exchange is a share gainer in a market with a 12% total addressable market CAGR.Macquarie expects the opportunity to support 16% revenue growth over FY26-30, with margins moving towards 70%. However, it sees the Closing Auction Session, or CAS, as a near-term drag.Jefferies has a more cautious view on BSE, with an Underperform rating and a Rs 2,940 target price. The brokerage has flagged BSE’s exposure to domestic proprietary traders, who account for around 50% of notional turnover. It also sees headwinds from the STT hike, RBI’s bank guarantee norms and CAS.Nuvama had downgraded BSE to Hold from Buy last month and cut its target price to Rs 3,240 from Rs 4,090, identifying three key headwinds converging in FY27.According to Nuvama, the newly introduced CAS has created confusion among traders and affected participation. BSE’s index option premium volumes, or ADPTV, stood at Rs 18,100 crore, the lowest since January 2025.The brokerage also flagged RBI’s bank guarantee norms and said BSE’s contract share of nearly 51.5% is already high, while ADPTV share remains lower at around 36%, limiting incremental upside from further share gains.
