Shares of BSE Ltd surged to an all-time high on Friday, May 30, amid unusually heavy trading volumes and sustained investor interest. The rally marks a continuation of the exchange’s strong performance over the past six months, during which the stock has appreciated by an impressive 75%. The renewed momentum comes just days after a major corporate action and new regulatory developments from SEBI that could reshape the competitive landscape for derivatives trading in India.
BSE Shares Hit Record High Amid Market Euphoria
In the late morning trading session on Friday, shares of BSE touched a new lifetime high of Rs 2,670 per share, registering a surge of more than 8%. As of 11:45 am, the stock was quoting at Rs 2,666.5 on the NSE, reflecting a gain of 8.2%. Even a few minutes later, the price remained buoyant at Rs 2,651 per share, up 7.6% for the day. This marked a significant milestone in the ongoing bullish trend that has gripped the counter in recent weeks.
Over the past one month alone, BSE shares have gained 25%, and in the six-month period leading up to May 30, the stock has rallied by a massive 75%, making it one of the best-performing listed entities in the financial services space.
Highlights:
BSE shares hit a record high of Rs 2,670 in intraday trade.
Stock rose over 8% on May 30 alone, trading above Rs 2,650 for most of the session.
One-month gain stands at 25%, with a 75% rally over the last six months.
Unusually High Trading Volumes Signal Strong Investor Participation
Friday’s sharp uptick in BSE’s stock price was supported by a dramatic increase in trading volumes. Market data shows that more than 1 crore shares changed hands, doubling the one-month average daily trading volume of 50 lakh shares. A single large transaction involving 1.2 lakh shares, valued at Rs 32.5 crore, was also reported, indicating strong institutional or high net-worth investor interest.
The robust participation from both retail and institutional investors suggests growing optimism about the bourse’s medium-term growth outlook, especially in light of its recent bonus issue and operational performance.
Highlights:
Over 1 crore shares of BSE were traded, doubling the 1-month daily average of 50 lakh shares.
Large deal of 1.2 lakh shares valued at Rs 32.5 crore recorded in a single transaction.
Elevated volumes indicate strong institutional and retail interest in the stock.
SEBI Circular on F&O Expiry Sparks Strategic Interest in Exchange Stocks
The market’s focus on BSE has intensified following a recent circular issued by the Securities and Exchange Board of India (SEBI) on May 26. According to the directive, stock exchanges must choose either Tuesday or Thursday as the weekly expiry day for equity derivatives, including index options. SEBI has asked all exchanges to submit their expiry day preference by June 15, 2025.
Under the new rules, exchanges can operate only one weekly benchmark index options contract on their chosen expiry day. Furthermore, all other equity derivatives contracts will expire in the last week of the month, either on Tuesday or Thursday, depending on the exchange’s preference. This is seen as a move to reduce arbitrage and enhance systemic efficiency.
While this is likely to streamline market operations, it also has significant implications for BSE’s growing derivatives segment. According to estimates by Goldman Sachs, if NSE opts for Tuesday expiry—a day currently dominated by BSE—the latter’s share in index options premiums could drop by 3 to 4 percentage points. This would reduce BSE’s market share to 18.8% from 22.2% based on year-to-date data, potentially slowing down its growth in this high-margin business.
Highlights:
SEBI mandates exchanges to choose Tuesday or Thursday for weekly F&O expiry.
Final decision from exchanges expected by June 15, 2025.
Goldman Sachs estimates BSE’s index options market share could decline by 3-4 percentage points if NSE selects Tuesday as expiry day.
BSE’s derivatives segment could see impact despite overall equity momentum.
Bonus Issue Amplifies Retail Participation and Share Liquidity
Adding to the positive sentiment, BSE recently traded ex-date for its 2:1 bonus issue, effective from May 23. Under this corporate action, shareholders will receive two bonus shares for every one share held, thereby tripling the total number of outstanding shares.
The bonus issue adjusted BSE’s stock price from Rs 6,996 to Rs 2,332 to reflect the increase in share count, in line with standard market practice. This marks only the second instance of a bonus issue since BSE’s public listing in 2017, and the move is widely seen as a shareholder-friendly initiative aimed at improving stock liquidity and enhancing retail investor participation.
The new stock price post-adjustment has not deterred bullish sentiment. On the contrary, increased share availability appears to have amplified trading volumes and improved the stock’s accessibility to a broader investor base, which is partially responsible for the recent rally.
Highlights:
BSE traded ex-date for its 2:1 bonus issue on May 23.
Share price adjusted from Rs 6,996 to Rs 2,332 to reflect bonus share issuance.
Shareholders receive two bonus shares for every one held.
Bonus issue has increased liquidity and enhanced retail participation.
Brokerages Remain Cautiously Optimistic Despite Regulatory Headwinds
Despite the exuberance in the stock price, global brokerage house Goldman Sachs has maintained a ‘Neutral’ rating on BSE. The firm acknowledged the strong recent performance and potential upside from equity turnover growth, but also flagged risks stemming from the SEBI-mandated F&O expiry realignment.
The potential reallocation of expiry days by NSE and BSE could significantly affect volumes and premiums in the derivatives market, which has emerged as a key revenue driver for both exchanges. However, the bonus issue, high trading liquidity, and positive long-term structural trends in equity investing are likely to keep investor sentiment favorable, barring any major regulatory setbacks.
Highlights:
Goldman Sachs maintains ‘Neutral’ rating on BSE.
Concerns raised over impact of SEBI expiry rules on BSE’s derivatives market share.
Long-term positives include equity market growth and improved trading volumes post bonus issue.
Regulatory clarity awaited on final expiry day selection by major exchanges.
