Shares of BSE continued their march on Dalal Street, rising nearly 7% on October 14 to nudge closer to the Rs 5,000 level, also helped by a block deal after a solid upmove during Friday's session.
Shares worth Rs 13.41 crore of BSE had exchanged hands in a block deal at a price of Rs 4,673.05 per share, Bloomberg News reported, adding to heightened interest in the shares in the past few weeks.
Shares of BSE have had a steller run in September, which has continued, resulting in a 65% rise in last one month. On a YTD basis, BSE shares have more than doubled with 115% gains, with a large part of the upmove coming in the last three months alone. BSE has a market capitalisation has now reached over Rs 65,000 crore.
Insight from Bloomberg News shows that some market participants believe weekly contracts discontinued by NSE could see some trading volume shift to BSE, a factor acting as a sentimental boost for the share price. After market regulator's recent circular, NSE has discontinued weekly expiries for Bank Nifty, Fin Nifty as well as Midcap Nifty.
Rising hopes of rival National Stock Exchange possibly preparing for a public issue soon has added to the optimism around BSE shares as well.
During the June quarter earnings call, BSE had expressed confidence that the regulatory changes by capital market Sebi will also provide new opportunities for the company to grow, and BSE is not overly worried on impact on volumes. "Every emerging regulatory and business environment is new, and therefore, the regulatory changes when they impact existing paradigm invokes a sense of concern at times. But what we need to notice, they also provide newer opportunities. BSE, since it is at its nascent stages of development of this market, I'm sure we'll find it comparatively easier to adapt to the emerging paradigms and strategize and grow stronger," Sundararaman Ramamurthy, MD & CEO of BSE had said in August.
BSE's MD and CEO Sundararaman Ramamurthy in a conversation with CNBC-TV18 in August also said that the exchange is looking at increasing participation, both from the retail as well as institutional segments, and is upbeat on the mutual fund segment. "We are very bullish on mutual fund segment because compared to the entire population and various numbers and paradigms I think we have not even scratched the surface in respect of mutual funds," CEO Sundararaman Ramamurthy said.
The BSE StAR MF clocked a revenue growth of 101% year-on-year in the June quarter at Rs 48 crore, with total processed transactions growing by 72% YoY to 14.1 crore in Q1FY25. The platform processed processed a new high of 5.27 crore transactions in July, of which 3.8 crore were SIPs. It is currently testing out a new mutual fund platform called StAR MF 2.0, which is expected to go live in 2024.
BSE has an equity market share of 9%, Ramamurthy said, and the exchange is gearing up to attract more participation from institutional investors. "We think that we will be able to attract some amount of FPI volumes along with the institutional volumes. So, that should improve our situation in equities market," Ramamurthy said.
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