On March 28, 2025, shares of BSE Ltd experienced a remarkable surge, gaining over 14 percent as investors reacted positively to news regarding a potential bonus share issue. The stock opened at Rs 5,000 on the National Stock Exchange (NSE), significantly up from its previous close of Rs 4,684.35. Throughout the trading session, the stock reached an intraday high of Rs 5,348.35, marking a gain of 14.17 percent from the previous close. By the end of the day, the shares were trading at Rs 5,303, reflecting strong investor confidence.
The spike in BSE's share price can be attributed to the announcement that the company's board of directors will convene on Sunday, March 30, 2025, to discuss and potentially approve a proposal for a bonus share issuance. "This is in continuation to the stock exchange intimation made by the company on March 26, 2025, thereby informing that a meeting of the board of directors is scheduled to be held on Sunday, March 30, 2025, to inter alia, consider and approve the proposal for issue of bonus shares, subject to requisite approvals," BSE informed the NSE.
In addition to the bonus share proposal, BSE shares have been trading above their 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong bullish trend. The stock has demonstrated impressive performance over the past year, gaining more than 100 percent. However, it has faced some volatility, correcting 17.89 percent over the last three months while still managing a 16.59 percent increase over the past six months.
Another key factor influencing BSE's share performance is the recent proposal from the Securities and Exchange Board of India (SEBI) to restrict the expiry schedule for equity derivative contracts. On March 27, SEBI issued a consultation paper suggesting that expiries should only occur on Tuesdays or Thursdays. This proposal aims to reduce concentration risk and promote product innovation within the market.
As a result of SEBI's proposal, the rival National Stock Exchange (NSE) has deferred its previous plan to shift its derivative contracts' expiry day to Monday, which would have posed a competitive threat to BSE. Analysts believe that this regulatory change will help BSE maintain its market share and prevent potential volume losses to the NSE.
Leading brokerage firm Jefferies has reiterated its HOLD rating on BSE shares, setting a target price of Rs 5,250, which indicates a potential upside of approximately 12 percent from the stock’s recent trading price of Rs 4,694 on March 27. Jefferies noted that the SEBI proposal could alleviate concerns regarding BSE's market share loss, which was previously estimated to impact earnings per share (EPS) by 12 percent.
Motilal Oswal Financial Services (MOSL) has also maintained a positive outlook on BSE, emphasizing that the proposed SEBI changes could sustain the exchange's growth trajectory. With BSE's derivative contracts expiring on Tuesdays, the benefit of time decay in options trading will remain intact, supporting its market share gains against the NSE.
Moreover, BSE has announced a dividend of Rs 15 per share with a face value of Rs 2 for the financial year 2024-25, following a previous dividend declaration of Rs 12. This consistent dividend policy has further enhanced investor confidence in the stock.
Despite the recent gains, the broader market showed signs of weakness on March 28, with the 30-share BSE benchmark Sensex declining by 144.66 points to 77,461.77, while the NSE Nifty dipped 38.7 points to 23,553.25. These declines were attributed to weak trends in global markets amid ongoing uncertainties related to potential tariffs proposed by former President Donald Trump.
In the last week, BSE shares gained 7.91 percent, reflecting a strong rebound following a challenging February, during which the stock fell by 13 percent. With a market capitalization of Rs 72,005 crore, BSE's stock has shown resilience, climbing over 90 percent in the past year and advancing 13 percent in March alone.
As BSE prepares for its upcoming board meeting to discuss the bonus share proposal, investors will be closely watching for further developments. The anticipation surrounding the potential issuance of bonus shares is expected to keep the stock in the spotlight, especially as the trading window remains closed for securities transactions from March 26, 2025, to April 1, 2025.
Overall, BSE's recent performance highlights the dynamic nature of the Indian stock market, where regulatory changes and company announcements can significantly impact share prices. Investors are advised to stay informed on developments concerning BSE and the broader market as they navigate their investment decisions.
