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Mint
6 days ago
- Business
- Mint
BSE share price declines 15% as SEBI shifts expiry date: Analysts trim their forward earnings estimates
Stock Market Today: BSE share price declined more than 5% in the morning trades on the NSE on Wednesday as the market regulator SEBI shifted the expiry date. Analysts have trimmed their forward earnings estimates as they expect some impact on volumes. MOFSL says that a shift in expiry will dent market share According to separate circulars released by both exchanges, the BSE said that its contracts will expire on Thursdays beginning September 1st, while the NSE changed the expiry date for its weekly and monthly derivatives contracts to Tuesday. The BSE is moving its futures contracts' expiration date from Tuesday to Thursday. Monthly contracts will now terminate on the final Thursday of the month as of September 1. However, in accordance with the current schedule, contracts that are set to expire on or before August 31 will still expire on Tuesdays. Jefferies India Pvt. Ltd. said that the expiry day shift may impact volumes a tad. However, they also feel that there is scope to mitigate impact SEBI has confirmed swapping of equity derivatives expiry days for NSE (to Tuesday) & BSE (to Thursday) w.e.f. 1-September-2025. Jefferies said that their interactions with market participants indicate a ~5-10% impact on vols in the near term and build-up thereafter. However, they added that BSE's ability to build liquidity in longer-term contracts can offset this impact, and implementation of common contract notes can aid market share in the cash segment. They have trimmed their earnings per share estimates by 1-2% to factor in slightly lower volumes. They have Hold Ratings on the stock Motilal Oswal Financial Services Ltd. (MOFSL) on BSE, shifting the expiry of weekly contracts of Sensex from Tuesday to Thursday starting 01 September'25, said that "We note that this shift will lead to a loss in market share for BSE in terms of premium turnover, which stood at 22.6% in May'2025. Each of the days accounts for 18-22% share in the week's total premium volume, as of now, as per MOFSL, as BSE has a market share of 8% on Wednesday and Thursday and 21%, 24%, and 38% on Friday, Monday, and Tuesday, respectively. Overlaying the current trends on the day-wise share in volumes for the week, MOFSL expects a market share loss of 350-400 basis points for BSE. MOFSL's premium average daily turnover (ADTO) projections for FY26 and FY27 have thereby been lowered from ₹ 15500 crore and ₹ 19000 crore to ₹ 13700 crore and ₹ 15700 crore. This results in a 9% and 12% decrease in Motilal Oswal Financial Services' earnings projections for FY26 and FY27. The BSE share price that opened at ₹ 2525 dipped to intraday lows of ₹ 2500, which meant a decline of more than 5% in the intraday trades on Wednesday over the previous day's closing price of ₹ 2664. The BSE share price thereafter recovered and thereafter was trading more than 1% lower.
Business Upturn
09-06-2025
- Business
- Business Upturn
Motilal Oswal slapped with fine as SEBI penalizes firm for client-level reporting lapses
The Securities and Exchange Board of India (SEBI) has imposed a monetary penalty of Rs 2 lakh on Motilal Oswal Financial Services Ltd. (MOFSL) for incorrect reporting of client information on stock exchanges, citing a lapse in due diligence expected from a registered intermediary. According to the adjudication order, MOFSL had submitted erroneous Unique Client […] By Aditya Bhagchandani Published on June 9, 2025, 15:49 IST The Securities and Exchange Board of India (SEBI) has imposed a monetary penalty of Rs 2 lakh on Motilal Oswal Financial Services Ltd. (MOFSL) for incorrect reporting of client information on stock exchanges, citing a lapse in due diligence expected from a registered intermediary. According to the adjudication order, MOFSL had submitted erroneous Unique Client Code (UCC) details for three clients, resulting in mismatches between actual client PANs and those reported to the exchanges (NSE and BSE). Although the violations were not found to be fraudulent, SEBI noted that such discrepancies undermine market surveillance mechanisms and regulatory oversight. The regulator emphasized that stock brokers play a key role in maintaining transparency and integrity in the market, and that accurate UCC mapping is crucial for traceability of trades, especially during abnormal market movements or in investigations involving potential misconduct. SEBI acknowledged MOFSL's submission that the errors were technical and had been rectified, but maintained that the firm failed to exercise adequate care and diligence in fulfilling its regulatory obligations. The penalty has been imposed under Section 15HB of the SEBI Act, which allows for punishment in cases of contravention where no specific penalty is prescribed. This order serves as a reminder to all market intermediaries to maintain strict compliance protocols and ensure accurate client-level disclosures to the exchanges and regulators. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
06-06-2025
- Automotive
- Time of India
Auto ancillary stocks shift into top gear, but caution lights on
Auto ancillary companies have generated higher investor interest over the past month amid buoyancy in the broader market. However, investors need to be cautious since the sector may face pressure due to muted demand for commercial and passenger vehicle (CV and PV) demand. Of the 22per cent increase posted by the ET-auto ancillaries index in the past three months, 13% was in one month, reflecting improved traction in these stocks. For a sample of 22 auto component companies, half have posted year-on-year revenue growth in the March quarter in double-digits. However, only eight of them have recorded double-digit growth in net profit. While seven companies posted double-digit growth in operating profit before depreciation and amortization, operating margin expanded for 8 companies. The two-wheeler companies reported a slower volume growth in the second half of FY25 after a strong growth in the first six months according to Motilal Oswal Financial Services (MOFSL). Tractors was the only segment that witnessed a strong demand recovery. The automobiles sector saw earnings downgrades for FY26 as margin may take a hit amid rising input costs and tepid growth visibility. 'The recent appreciation of the rupee against the dollar is a key monitorable for exports-focused companies. Given these factors, FY26 is expected to be a year of modest earnings growth for most companies under our coverage,' said MOFSL. The margin outlook for global original equipment manufacturers (OEM) adds to the uncertainty. According to Elara Capital, top international auto makers including Mercedes-Benz, Porsche and Ford have either downgraded or suspended guidance for 2025, citing tariff risks, market share loss in China, and margin headwinds. This may impact Indian auto parts suppliers with global linkages like Bharat Forge, Sona BLW.
Economic Times
05-06-2025
- Automotive
- Economic Times
Auto ancillary stocks shift into top gear but caution lights flash
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Auto ancillary companies have generated higher investor interest over the past month amid buoyancy in the broader market. However, investors need to be cautious since the sector may face pressure due to muted demand for commercial and passenger vehicle (CV and PV) demand. Of the 22% increase posted by the ET-Auto Ancillaries index in the past three months, 13% was in one month, reflecting improved traction in these a sample of 22 auto component companies , half have posted year-on-year revenue growth in the March quarter in double-digits. However, only eight of them have recorded double-digit growth in net profit. While seven companies posted double-digit growth in operating profit before depreciation and amortization (EBITDA), operating margin expanded for eight two-wheeler companies reported a slower volume growth in the second half of FY25 after a strong growth in the first six months according to Motilal Oswal Financial Services (MOFSL). Tractors was the only segment that witnessed a strong demand automobiles sector saw earnings downgrades for FY26 as margin may take a hit amid rising input costs and tepid growth visibility. 'The recent appreciation of the rupee against the dollar is a key monitorable for exports-focused companies. Given these factors, FY26 is expected to be a year of modest earnings growth for most companies under our coverage,' said margin outlook for global original equipment manufacturers (OEM) adds to the uncertainty. According to Elara Capital, top international auto makers including Mercedes-Benz, Porsche and Ford have either downgraded or suspended guidance for 2025, citing tariff risks, market share loss in China, and margin headwinds. This may impact Indian auto parts suppliers with global linkages like Bharat Forge Sona BLW , and Motherson Sumi A possible turnaround in the entry level demand for bikes driven by the rural market after a lacklustre trend in the recent quarters, new product launches and the vehicle scrappage policy hold the key for a demand uptick in the near term, according to YES Securities. It expects gross margins to be under marginal pressure due to a possible material inflation, cushioned partially by favourable product mix in the first half of FY26. In addition, the income tax relief is anticipated to boost demand, especially for price-sensitive fundamentals showing signs of fatigue, analysts advise caution in near term. Stocks with strong domestic demand drivers, rural exposure, and EV-related product lines may hold up better, but margin pressures and global uncertainties could limit further upside. According to MOFSL, the recent stock market rally has led to the normalisation of valuation multiples which had fallen in the recent past. 'The earnings outlook for the sector appears benign, given the modest volume growth outlook and expectations of rising input cost pressure,' the brokerage stated in the report, highlighting that it prefers Endurance Technologies and Happy Forgings among auto ancillaries stocks.
Time of India
05-06-2025
- Automotive
- Time of India
Auto ancillary stocks shift into top gear but caution lights flash
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Auto ancillary companies have generated higher investor interest over the past month amid buoyancy in the broader market. However, investors need to be cautious since the sector may face pressure due to muted demand for commercial and passenger vehicle (CV and PV) demand. Of the 22% increase posted by the ET-Auto Ancillaries index in the past three months, 13% was in one month, reflecting improved traction in these a sample of 22 auto component companies , half have posted year-on-year revenue growth in the March quarter in double-digits. However, only eight of them have recorded double-digit growth in net profit. While seven companies posted double-digit growth in operating profit before depreciation and amortization (EBITDA), operating margin expanded for eight two-wheeler companies reported a slower volume growth in the second half of FY25 after a strong growth in the first six months according to Motilal Oswal Financial Services (MOFSL). Tractors was the only segment that witnessed a strong demand automobiles sector saw earnings downgrades for FY26 as margin may take a hit amid rising input costs and tepid growth visibility. 'The recent appreciation of the rupee against the dollar is a key monitorable for exports-focused companies. Given these factors, FY26 is expected to be a year of modest earnings growth for most companies under our coverage,' said margin outlook for global original equipment manufacturers (OEM) adds to the uncertainty. According to Elara Capital, top international auto makers including Mercedes-Benz, Porsche and Ford have either downgraded or suspended guidance for 2025, citing tariff risks, market share loss in China, and margin headwinds. This may impact Indian auto parts suppliers with global linkages like Bharat Forge Sona BLW , and Motherson Sumi A possible turnaround in the entry level demand for bikes driven by the rural market after a lacklustre trend in the recent quarters, new product launches and the vehicle scrappage policy hold the key for a demand uptick in the near term, according to YES Securities. It expects gross margins to be under marginal pressure due to a possible material inflation, cushioned partially by favourable product mix in the first half of FY26. In addition, the income tax relief is anticipated to boost demand, especially for price-sensitive fundamentals showing signs of fatigue, analysts advise caution in near term. Stocks with strong domestic demand drivers, rural exposure, and EV-related product lines may hold up better, but margin pressures and global uncertainties could limit further upside. According to MOFSL, the recent stock market rally has led to the normalisation of valuation multiples which had fallen in the recent past. 'The earnings outlook for the sector appears benign, given the modest volume growth outlook and expectations of rising input cost pressure,' the brokerage stated in the report, highlighting that it prefers Endurance Technologies and Happy Forgings among auto ancillaries stocks.
