Wed Mar 05 04:10:00 UTC 2025: ## BSE Shares Plunge Over 5% After Goldman Sachs Downgrade

**Mumbai, March 3, 2025** – Shares of the Bombay Stock Exchange (BSE), India’s oldest exchange, experienced a sharp decline of over 5% on Monday, March 3rd, 2025, despite a generally positive market sentiment. The drop follows a downgrade from foreign brokerage Goldman Sachs, which reiterated a “neutral” rating on the stock and slashed its target price to Rs 4,880 from Rs 5,650. This represents a potential upside of only 5% from Friday’s closing price.

The significant fall, which saw the BSE share price hit a low of Rs 4,395.7 apiece, comes after a series of losses since February 20th, accumulating to a 26% drop from its peak during that period. Goldman Sachs attributes the decline to concerns surrounding proposed regulatory changes by the Securities and Exchange Board of India (SEBI).

SEBI’s new risk assessment methodology, detailed in a February 24th consultation paper, will alter the calculation of open interest (OI) in equity derivatives. This shift, Goldman Sachs argues, will reduce activity from proprietary traders – who account for 70% of the BSE’s average daily turnover – impacting trading volumes and potentially lowering the options premium to cash equity turnover ratio from 0.4x to 0.3x. The brokerage also predicts that the average daily premium traded for index options contracts will likely not exceed 30%, down from 22% in February.

These concerns led Goldman Sachs to slash its earnings per share (EPS) estimates for FY26, FY27, and FY28 by 14%, 12%, and 11%, respectively. Despite Monday’s significant drop, it’s important to note that BSE shares have seen substantial growth over the past year (up 92%) and three years (up 548%).

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