Shares of BSE fell over 4 percent on Wednesday, marking their steepest single-day fall in three weeks, after the stock was placed under the Additional Surveillance Measure (ASM) framework.
The decline snapped a nine-session winning streak in the BSE stock, which had rallied sharply in recent weeks.
The move to place BSE under ASM was triggered by unusual price movement, high volumes, and concentrated client activity — parameters closely tracked by exchanges to curb speculative trading. Under the framework, trading in the stock will now require 100 percent margin, reported CNBC-TV18.
The stock touched an intraday low of Rs 2,871.30 on the National Stock Exchange, down 4.46 percent, before recovering slightly to trade at Rs 2,883.10 by 1:15 pm, still down 4.07 percent.
BSE shares have risen nearly 130 percent from their March lows, driven by increased activity in the equity derivatives segment and market buzz around the upcoming IPO of larger peer NSE. At current levels, the stock is trading at more than 36 times estimated forward earnings, according to CNBC-TV18.
The selloff also weighed on other capital market-linked stocks. Shares of MCX and CDSL were down nearly 3 percent intraday.
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