Shares of BSE, formerly known as the Bombay Stock Exchange, tumbled over 4.25 per cent in early trade on Thursday, June 12, extending losses for the second consecutive session. During the session so far, its shares made an intraday low of Rs 2,760 apiece. In the previous session, its shares closed lower by 4 per cent. Over the two sessions, the stock has now declined over 8.16 per cent.
From its freshly-logged all-time high level of Rs 3,030 apiece, BSE shares are now down about 9 per cent.
Established in 1875, BSE is Asia's oldest and the world's 10th-oldest stock exchange. As of June 11, 2025, it is also the sixth largest stock exchange in the world by market capitalisation, with a total value of over Rs 456.53 lakh crore.
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Why BSE Share Price Is Falling
BSE’s shares have come under pressure after the stock was placed under the Additional Surveillance Measure (ASM) framework by the National Stock Exchange (NSE), which prompted investors to take a cautious stance and book their profits.
ASM is a regulatory tool used by stock exchanges to keep a watch on those stocks that show unusual changes in price or excessive volatility. When a stock is placed under the ASM framework, it is subjected to stricter trade restrictions such as higher margin requirements, limits on intraday trading, or tightening of price band to prevent speculation, reduce risks, and maintain fair practices in the market.
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However, in a circular dated June 10, NSE also added, “…the shortlisting of securities under ASM is purely on account of market surveillance, and it should not be construed as an adverse action against the concerned company/entity.”
This has come after a recent strong surge in the stock, where it witnessed over 140 per cent rally since its March lows. Over the past year, the stock has rallied 208 per cent, and over the past five-year period, it has yielded a 6,300 per cent return.
Factors Behind The Strong Rally In BSE Shares
BSE is gradually growing its presence in the duopolistic equity derivatives market and is investing heavily in technology like artificial intelligence (AI) and machine learning to process large amounts of data.
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According to a January 2025 report by Nuvama Institutional Equities, BSE still has ample room to grow its active derivatives customer base, which currently stands at 1.5–2 million per month. This is well below the NSE’s 4.2 million customer base. Nuvama expects BSE’s equity index options average daily premium turnover value (ADPTV) market share to jump from 3.1 per cent in FY24 to 14.9 per cent by FY27. As of November 2024, this share had already increased to 11.9 per cent, the report said.
BSE also recently raised its transaction charges from Rs 500 per to Rs 3,250 per Rs 1 crore of turnover. With this hike and rising volumes, Nuvama expected its transaction fee income to grow at 69.9 per cent compound annual growth rate (CAGR) between FY24 and FY27. The brokerage also forecasts a 39.9 per cent CAGR in operating revenue for the same period.
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The report also said BSE's profitability will likely improve, adding that its EBITDA margin could grow to 57.6 per cent by FY27, while net profit margins may reach 45.6 per cent. Return on equity is expected to grow from 11.6 per cent to 37.9 per cent in this time frame.
Risks Associated With BSE Shares
However, Nuvama flagged several risks that could impact BSE’s growth. These include adverse regulatory changes, over-reliance on index options in derivatives, potential macroeconomic slowdowns, and technology infrastructure failures. The brokerage also highlighted the possibility of regulatory hurdles, competition from rival NSE, and exposure to interest rate fluctuations through BSE’s investment portfolio.
