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BSE surges nearly 53% in last two weeks, hits fresh all-time high

Since February 25 till date, BSE shares advanced 52.93 percent to hit a record high of Rs2868 from Rs 1874.85 on NSE. Since 1 February, BSE stock gained around 35 percent while Sensex and Nifty dropped around 5.3 percent each. So far this year it gained over 40 percent.

March 11, 2022 / 15:51 IST
     
     
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    The Bombay Stock Exchange (BSE) has surged nearly 53 percent in the last two weeks, hitting a fresh all-time high. Even as global markets including local equity stock markets fell due to Russia Ukraine tensions shares of BSE Ltd surged nearly 53 percent in the last two weeks, hitting fresh all time high on the back of higher volumes.

    Since February 25 till date, BSE shares advanced 52.93 percent to hit a record high of Rs2868 from Rs 1874.85 on NSE. Since February 1, the BSE stock gained around 35 percent while Sensex and Nifty dropped around 5.3 percent each. So far this year it gained over 40 percent.

    Analysts say that the stock skyrocketed in the past few sessions due to news of bonus share issue.

    The company has fixed March 22, as the record date for the purpose of determining the names of shareholders who shall be entitled for the allotment of bonus equity shares in the ratio of two new fully paid equity shares of face value Rs. 2 each for every one share held by the shareholders of BSE.

    Also Read | Investors' wealth jumps over Rs 10.83 lakh crore in 3 days

    "For investors who want to do bonus stripping in this fiscal to offset the profits made in other stocks, this is the last chance to do it when the bonus ratio is big (and hence the short term loss on sale of original shares will be large). From next year, this loophole has been plugged in the recent Union Budget," said Deepak Jasani, Head of Retail Research, HDFC Securities.

    "Also the change in the market sentiments over the last three days has also contributed to resurgence of interest in capital market intermediary stocks," Jasani added.

    Also Read | What should investors do with BSE?

    In the past six months, BSE stock has given a return of around 110 percent, mainly on the back of better than expected operational and financial performance. According to Choice Broking, at current market price , the stock is trading at TTM P/E multiple of 59.6x, which seems to be on the higher side.

    For the December quarter, the firm reported 86 percent jump in net profit to Rs 58.60 crore while revenue advanced 60 percent to Rs 192.70 crore. For the quarter, its average daily turnover for the cash segment surged nearly 44 percent while for equity and currency derivatives it jumped 23 percent and 29 percent respectively.

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    Moneycontrol News
    first published: Mar 11, 2022 03:51 pm

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