Wed Oct 16 07:26:38 UTC 2024: ## BSE Stock Price Falls as Jeffries Downgrades Rating to ‘Underperform’

**MUMBAI, INDIA -** The Bombay Stock Exchange (BSE) share price tumbled on Monday after international brokerage firm Jeffries downgraded the stock to ‘Underperform’ from ‘Hold.’ While Jeffries raised the target price for BSE to ₹3,500 per share from ₹2,850, this still represents a 26% discount to the stock’s closing price on October 15th.

The downgrade comes despite the BSE share price surging over 115% year-to-date and 38% in the past month. The recent rally was fueled by expectations of increased market share following the introduction of SEBI’s new F&O framework.

However, Jeffries believes the current valuation is “overly optimistic” and doesn’t account for the potential risks associated with the F&O framework’s impact on the overall market. The brokerage argues that investors may be “overly optimistic” in their anticipation of significant market share gains.

While some market participants believe that the discontinuation of weekly contracts by NSE could shift trading volume to BSE, providing a sentimental boost to the share price, Jeffries remains cautious. The brokerage also points out that the anticipated IPO of NSE could further fuel optimism around BSE shares.

BSE’s market cap now exceeds ₹65,000 crores. The company’s valuation at 40x PE for FY26 suggests an expectation of its market share rising from 13% in the July-September 2024 quarter to 30-35% in the future.

**Disclaimer:** The views expressed by experts/brokerage firms are their own and Moneycontrol.com does not assume any responsibility for the same. Users are advised to always consult with a certified expert before making any investment decisions.

Read More