BSE’s share price shot up today. The stock went up over 6% to hit an intraday high of ₹4,497.90.
India’s biggest stock exchange had a great time at the bourses last year. The stock surged close to 140% in 2024.
Analysts expect the stock to carry this impressive momentum.
BSE share price- technical analysis
“After a robust 45-day Cup and Handle breakout, BSE Ltd. is showing strong follow-through momentum on the upside,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.
He added that:
With ₹5200 now acting as a key support level and a stop-loss for aggressive long positions, the stock has the potential to test ₹5800 in the near term.
He explained that this classic bullish pattern signals renewed investor confidence and sets the stage for further gains.
He added that traders and investors are eyeing this breakout as a significant technical milestone, with strong volumes adding weight to the move.
BSE- top pick for 2025
Motilal Oswal picked the stock as one of its top picks for the year.
The brokerage reiterated its “buy” rating for the stock with a target price of ₹6,500, based on a 45x multiple on the September 2026 estimated EPS.
The target indicated an over 26% upside from the stock’s last closing price.
The brokerage highlights BSE’s significant competitive positioning, as the exchange successfully captured around 29% of the notional options turnover in December 2024.
This achievement is attributed to factors like product innovation, increased member participation, and less impact from regulatory changes compared to the NSE.
Despite the restriction on weekly expiry contracts from November 2024, BSE has seen improvements in key metrics, including a 9% absolute growth in premium ADTO (Average Daily Turnover), a 15% market share in premium turnover, and a favorable premium-to-notional turnover ratio (10 basis points in December 2024, compared to an average of 7.3 bps in the prior three months).
The decline in notional turnover is expected to reduce regulatory charges and clearing & settlement costs, thereby enhancing BSE’s profitability.
Additionally, the change in Sensex expiry day from Friday to Tuesday is anticipated to further boost BSE’s market share.
The scale-up of co-location servers will also bring in high-frequency traders and institutions, increasing volumes in long-dated expiry products, which will positively impact realizations and reduce costs.
Star MF, a key business for BSE, has delivered strong performance, and the exchange continues to invest in expanding this business, recognizing substantial revenue opportunities.
Motilal Oswal expects BSE to register a robust CAGR of 44% in revenue, 74% in EBITDA, and 74% in PAT over FY24-27E.
The firm believes that the improvement in the premium-to-notional turnover ratio will offset the decline in volumes.
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