BSE Share Price: Global brokerage firm Jefferies has improved the rating of Bombay Stock Exchange (BSE) Limited shares from ‘underweight’ to ‘hold’. But the most important thing that caught the attention of investors was that it has increased its target price for BSE from Rs 3,500 to Rs 5,250. This represents an increase of about 50% from the previous target. However, the new target price shows only a 2% upside potential from Monday’s closing price.
After this report, there was a strong rise in BSE shares today and in early trade this share increased by about 5.9 percent to reach Rs 5,459.85. With this, the stock has crossed the target price given by Jefferies. This stock has given a return of 143 percent in the last one year.
Jefferies says that in the current situation of the stock market, the income of exchange companies is likely to increase. However, brokers may need to increase prices to keep pace with the changing market environment.
SEBI’s new rules related to futures and options (F&O) trading have significantly impacted options volumes, leading to a decline of about 70% in the number of contracts. Despite this, premiums have declined by less than 10% month-on-month since the beginning of January 2025, which is better than Jefferies’ estimate of a 25% decline.
Interestingly, the industry’s average ticket size in the second week of January 2025 has tripled compared to November 2024, which has been possible due to increased lot sizes. However, Jefferies also warned that discount broking volumes could fall by more than 40%, which would require massive price increases to offset the impact.
Recently, another brokerage firm Goldman Sachs also started covering the BSE stock and gave it a ‘neutral’ rating, along with a target price of Rs 5,060. Goldman Sachs believes that BSE will benefit from strong growth trends in Indian equity capital markets. However, he also said that current valuations are close to all-time highs and are in line with its global peers and its risk-reward ratio also appears balanced.
At the current level, the market cap of BSE stands at ₹69,691.75 crore. On the charts, BSE shares are not in the ‘overbought’ or ‘oversold’ zones. Its Relative Strength Index (RSI) stands at 46.8, where an RSI below 30 is considered oversold and above 70 is considered overbought. Out of 9 analysts covering BSE, 5 have advised ‘buy’ in this stock, three have suggested ‘hold’ and one has suggested ‘sell’.
Also read- Brokerage Radar: 5 shares come on brokerage radar, where will you get strong returns, which can lead to loss, know
Disclaimer: The views and investment advice given by experts/brokerage firms on Moneycontrol are their own and not those of the website and its management. Moneycontrol advises users to consult certified experts before taking any investment decision.