2 weeks ago
BSE shares slide on downgrades ahead of Nifty 50 entry
BSE is the company that runs a big stock market in India.
Lately, people are paying less for BSE's own shares.
Big research banks called analysts think BSE will not make as much money soon.
The government made a tax on stock trading go up.
New rules from the RBI made it costlier to post collateral.
A new way of closing the market, called a Closing Auction, made fewer people trade options on BSE.
Fewer trades means less money for BSE.
So two analysts, Jefferies and Nuvama, told investors the stock is not as good a buy anymore.
But there is some good news: BSE will join a famous list of big companies called the Nifty 50.
When that happens, big funds must buy BSE shares, which could help the price go up.
BSE Limited shares closed 0.72% lower at ₹3,308 on Tuesday, ahead of the stock's inclusion in the Nifty 50 index on September 30.
Jefferies downgraded BSE to 'Underperform' from 'Hold', cutting its price target by 16% to ₹2,940.
Nuvama Institutional Equities downgraded BSE to 'Hold' from 'Buy', slashing its price target to ₹3,240 from ₹4,090.
The new Closing Auction Session cut BSE's options average daily premium turnover by roughly 12% in August, and contracts fell 30.5% week-on-week in the first post-CAS week.
JM Financial estimates Nifty 50 inclusion will trigger passive inflows of approximately $650 million into the stock, providing a potential near-term cushion.
- Who
- BSE Limited, along with brokerages Jefferies and Nuvama Institutional Equities, which downgraded the stock.
- What
- BSE shares slid and were downgraded by analysts citing regulatory headwinds, ahead of the exchange's inclusion in the Nifty 50 index.
- Where
- India's stock market, involving BSE and the NSE.
- When
- Published on August 18, 2026; shares closed lower on Tuesday ahead of the September 30 index inclusion.
- Why
- The Securities Transaction Tax hike, tighter RBI bank-guarantee norms and the new Closing Auction Session are expected to reduce BSE's options trading revenue.
Bearish analysts
Bullish case
Outlook on BSE shares
Bearish analysts
Jefferies and Nuvama downgraded BSE, citing the STT hike, tighter RBI collateral norms and the Closing Auction Session, with both brokerages cutting EPS estimates.
Bullish case
JM Financial estimates Nifty 50 inclusion will trigger roughly $650 million in passive inflows, cushioning the stock, which has returned about 33% over the past year.
Closing Auction Session
Bearish analysts
The new session disrupted BSE's expiry-day trading, with contracts falling 30.5% week-on-week and ADPTV hitting its lowest level since January 2025.
Bullish case
The session was introduced to align Indian markets with developed market practices.
Key facts
- Exchange
- BSE Limited
- Tuesday close
- ₹3,308, down 0.72%
- Nifty 50 inclusion
- September 30, replacing Wipro
- Jefferies rating/target
- Underperform / ₹2,940
- Nuvama rating/target
- Hold / ₹3,240
- August options ADPTV impact
- Roughly 12% decline
- Post-CAS contract fall
- 30.5% week-on-week
- Estimated passive inflows
- Approximately $650 million
Sources
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