Wed Oct 16 07:03:00 UTC 2024: ## BSE Shares Plunge 7% After Jefferies Downgrade

**Mumbai, India:** Shares of the Bombay Stock Exchange (BSE) plummeted nearly 7% on Monday morning after international brokerage Jefferies downgraded the company’s stock to “underperform.” The downgrade comes despite the recent surge in BSE’s share price, which has more than doubled since the release of SEBI’s new F&O framework.

Jefferies, citing unfavorable risk-reward, believes BSE’s valuation is “stretched” and fails to account for the potential negative impact of the new F&O framework on the overall market. While some market participants are optimistic about BSE gaining market share following NSE’s discontinuation of weekly contracts, Jefferies argues that these expectations are overly optimistic.

The brokerage has bumped up its target price for BSE to Rs 3,500 per share, implying a potential downside of 26% from the previous session’s closing price.

BSE’s share price has experienced a stellar run in recent months, gaining over 100% year-to-date. The recent surge has been fueled by expectations of market share gains and the possibility of the National Stock Exchange (NSE) going public soon. However, Monday’s sharp decline suggests that investors are now reassessing their bullish sentiment.

**Disclaimer:** The views and investment tips expressed in this article are those of Jefferies and do not represent the views of Moneycontrol.com. It is advisable to consult with certified financial experts before making any investment decisions.

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