BSE Shares Plummet as Analysts Revise Targets Amid Regulatory Concerns

!Bombay Stock Exchange (

) shares experienced a sharp 4% decline following a significant reduction in target price by Nuvama. The brokerage slashed its target price to Rs 5,160 from Rs 7,250, citing the National Stock Exchange's (NSE) decision to shift expiry days for derivative contracts as a key factor impacting BSE's growth potential. Nuvama also expressed concerns regarding the Securities and Exchange Board of India's (SEBI) consultation paper on derivative exposure, which it believes could further limit BSE's growth. Consequently, the brokerage has revised its adjusted net profit estimates for BSE downwards for FY25, FY26, and FY27, resulting in a lower estimated earnings per share CAGR of 17.1%. The brokerage has also lowered its price-to-earnings (P/E) multiple for BSE from 50x to 40x for FY26, reflecting increased competitive pressures and regulatory uncertainties. Adding to the negative sentiment, Goldman Sachs has also reduced its price target for BSE to Rs 4,230, although maintaining a 'Neutral' rating. The revised targets and regulatory concerns have led to a mixed outlook among analysts, with a blend of "Sell," "Buy," and "Hold" recommendations.