Brokerage firm Goldman Sachs on Thursday, March 6, cut its price target on BSE Ltd for the second time in a week, seeing a downside of nearly 2% from its previous closing price.The brokerage has a “neutral” rating on the stock and has cut its target price to ₹4,230 per share. On Monday, March 3, Goldman Sachs had cut its target price on the stock to ₹4,880 from the previous ₹5,650 apiece.
It its recent note, Goldman Sachs said the NSE expiry day change to Monday from Thursday, with effect from April 4, is negative for the BSE options market share.
It said the change in expiry day would matter the most for weekly option contract expiries.
From January 1, 2025, when the NSE changed the expiry day to Thursday and BSE was on Tuesday, the latter witnessed a market share gain within index options premiums from 16% during December 2024 to 20% in January and 22% in February, it said.Goldman Sachs added it had anticipated more relative liquidity build-up In BSE’s contracts not expecting any change in expiry days. It had also forecast a rise in BSE market share to 30% by October 2025. This matters as BSE gets nearly 50% of topline from options trading.
It its recent note, Goldman Sachs said the NSE expiry day change to Monday from Thursday, with effect from April 4, is negative for the BSE options market share.
It said the change in expiry day would matter the most for weekly option contract expiries.
From January 1, 2025, when the NSE changed the expiry day to Thursday and BSE was on Tuesday, the latter witnessed a market share gain within index options premiums from 16% during December 2024 to 20% in January and 22% in February, it said.Goldman Sachs added it had anticipated more relative liquidity build-up In BSE’s contracts not expecting any change in expiry days. It had also forecast a rise in BSE market share to 30% by October 2025. This matters as BSE gets nearly 50% of topline from options trading.
This was after market regulator SEBI had launched a consultation paper to bring down volatility in the derivatives market on February 24.
Of the 11 analysts that have coverage on the stock, eight have a “buy” rating, two have a “hold” rating and one has a “sell” rating.
BSE shares ended the previous trade session 3.47% lower at ₹4,299.1 apiece on Wednesday, March 5.
Also Read: Reliance Industries shares get an upgrade after correction; consensus sees 30% upside
