BSE Share Price Falls 8% From Record High; Should You Buy, Sell Or Hold?
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Shares of BSE Ltd. continued to decline for the second consecutive session on Thursday; What should investors do now?
BSE Shares
BSE Share Price: Shares of BSE Ltd. continued to decline for the second consecutive session on Thursday, falling as much as 4.24% to Rs 2,760 apiece on the NSE. The stock has now dropped over 8% from its record high of Rs 3,030, hit on June 10, 2025, as investors rushed to book profits after a sharp rally.
Pressure from Surveillance Framework
The recent sell-off follows BSE's inclusion in the Additional Surveillance Measure (ASM) list by the NSE. The move, aimed at curbing speculative trading, mandates a 100% margin requirement for trading the stock. This heightened scrutiny has weighed on sentiment, especially after BSE surged nearly 140% from its March 2025 lows, driven by rising interest in equity derivatives and buzz around NSE's potential IPO.
Elevated Valuations Raise Red Flags
At a market cap of around Rs 1.13 lakh crore, BSE is currently trading at a significant premium to its BFSI peers. Analysts have raised caution flags, pointing to a FY27E price-to-earnings (P/E) ratio of 35.1x—well above sector norms.
'Despite strong FY25 numbers, BSE's dependence on volatile trading volumes and high settlement costs make its current valuation difficult to justify," said Arihant Capital in a note. The firm flagged potential risks from macroeconomic uncertainty, competitive pressures, and inconsistent profitability.
The brokerage also warned that geopolitical tensions could impact market sentiment and, in turn, BSE's performance. Additionally, though the company announced a healthy dividend of Rs 23 per share (28.4% of FY25 profits), analysts question the sustainability of such payouts amid rising infrastructure investments.
Given the risks and stretched valuations, Arihant Capital has issued a 'Sell' rating on the stock, suggesting investors reallocate capital to more stable BFSI stocks.
Ruchit Jain of Motilal Oswal also expects a short-term correction. 'Momentum indicators are in overbought territory. A decline to the 20-day exponential moving average near Rs 2,650 seems possible. A breach there could push it down further to Rs 2,500," he added.
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