BSE shares surged up to 10 per cent in early trade on March 28 as the National Stock Exchange (NSE) postponed its decision to shift derivatives expiry days from Thursday to Monday.

The move followed a Securities and Exchange Board of India (SEBI) advisory, urging exchanges to maintain the status quo.

At 9:16 am, BSE shares were trading at Rs 5,055.8, up 8per cent. The stock had previously taken a nine per cent hit when NSE announced the shift, raising concerns about BSE’s trading volume and liquidity. However, with NSE putting its plan on hold, optimism returned.

Market expert Anil Singhvi suggested a BUY on BSE shares, setting a stop loss at Rs 4,565 and targets at Rs 4,725, Rs 4,790, and Rs 4,875.

SEBI’s consultation paper proposed that derivatives expiry be limited to Tuesdays or Thursdays, preventing unnecessary disruptions. The regulator also mandated prior approval for any changes to contract expiry dates.

A market source revealed, “SEBI advised exchanges to maintain the current expiry structure for now. NSE is expected to release a circular confirming this.”

International brokerage Jefferies stated that NSE’s move to Monday expiry could have impacted BSE’s market share and earnings per share (EPS) by 12 per cent. With the regulatory stance now clear, concerns over BSE’s market position are easing.

Jefferies added, “While open interest limit clarity is awaited, the impact on BSE should be minimal. Lower regulatory risks and a stronger market outlook could aid re-rating.” The brokerage maintained a ‘hold’ rating on BSE with a target price of Rs 5,250, indicating a 12 per cent upside.

Nuvama Research earlier noted that shifting NSE’s expiry to Monday would have compressed trading avenues for retail traders, affecting overall volumes. With SEBI’s intervention, NSE could likely retain Thursday expiry, while BSE continues with Tuesday.

The deferment of NSE’s plan has provided much-needed respite for BSE, restoring investor confidence. With regulatory clarity, bullish brokerage views, and Anil Singhvi’s positive stance, BSE shares could see further gains in the near term.