Wed Oct 16 09:07:01 UTC 2024: ## BSE Shares Plunge After Jefferies Downgrade

**Mumbai, October 15:** Shares of the Bombay Stock Exchange (BSE) tumbled over 6% on Wednesday, hitting an intraday low of Rs 4,471 on the NSE after brokerage firm Jefferies downgraded the stock to “underperform” from its previous rating of “hold.”

Jefferies, while revising its price target for BSE shares higher to Rs 3,500 (up from Rs 2,850), cited concerns over the company’s valuations and market share assumptions. The brokerage highlighted that BSE shares have more than doubled in value since the release of the market regulator SEBI’s new F&O framework, fueled by expectations of increased market share.

However, Jefferies deemed these assumptions “stretched,” noting that they fail to account for potential risks from a more substantial impact on the overall market, limited spillover gains, and the potential for additional regulations. The brokerage believes that the near-term risk-reward scenario for BSE appears “unfavorable.”

Despite the downgrade, BSE shares have delivered positive returns across various time frames, with a 29.90% gain in the last month, a 57.21% increase in the last six months, and a 100.70% surge year-to-date.

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