Market Innovation & Growth: The BSE Multi-Bagger Story

BSE has given a return of more than 1000% in the last 2 years. So, what is the reason that BSE has been a multi-bagger in the last 2 years? 2 years ago, NSE had a 100% market share in option trading. Then BSE launched its option trading. BSE saw that option trading is growing like crazy in India. So, they also launched option trading on their exchange. They kept the expiry on Friday. So that traders can play the expiry day on Friday. Because Nifty's expiry was on Thursday. So BSE kept the expiry on Friday. So that traders can play the expiry day on Friday. After that BSE has continuously gained market share from NSE. You can see in the picture that 2 years ago BSE's market share was 0%. Now it is growing every quarter. And right now it is approximately 20%. And India's derivative market is one of the biggest markets. So, growth is crazy. And the benefit that BSE is getting is that BSE has shifted the expiry of Sensex from Friday to Tuesday. So that traders can play 2 DTE, 1 DTE and 0 DTE in Sensex. DTE means day to expiry. But they only play 1 DTE and 0 DTE in Nifty. Because Sensex expires on Tuesday and Nifty expires on Thursday. So, there are only 2 days left in Nifty's expiry. So traders only play 1 DTE and 0 DTE on Nifty. And the benefit that Sensex is getting is that NSE requested that all exchanges expire on a single day. So that BSE can lose its market share. If both exchanges expire on a single day, then all traders will trade on NSE only. Because NSE is a recognised exchange. But SEBI rejected it. And BSE got the benefit of it. And in the last 3-4 years, retail participation is increasing in capital markets. And BSE got the benefit of it. So this is the reason that BSE has been such a multi-bagger stock in the last 2-3 years.