Shares of the Bombay Stock Exchange (BSE) tumbled 9 per cent on March 5, reacting to the National Stock Exchange’s (NSE) decision to shift all expiry dates to Monday. NSE’s move will impact liquidity trends, as it currently holds a dominant position in the derivatives market. With BSE’s expiry already set on Tuesday, the competition for market share is heating up.

NSE announced that starting April 4, weekly Nifty contracts expiring on Thursdays will shift to Monday. Additionally, monthly, quarterly, and half-yearly contracts, including Nifty Bank and sectoral indices like Financial Services and Midcap, will also see a change in their expiry cycle. Analysts suggest this is a strategic attempt to counter BSE’s recent gains in derivatives trading volume, especially on Mondays and Fridays.

Adding to the pressure, brokerage firm Goldman Sachs downgraded BSE’s price target to Rs 4,880 from Rs 5,650, citing a potential decline in industry trading volumes. The firm also slashed its earnings estimates for FY25-FY28 by up to 14 per cent. BSE shares, which hit a high of Rs 6,133 recently, have now corrected by 33 per cent to trade at Rs 4,090.

Experts warn that NSE’s expiry shift could increase volatility in BSE’s derivatives segment. Traders may now reconsider their positioning, potentially leading to a shift in trading volumes. With geopolitical developments over the weekend impacting Monday sentiment, investors are closely watching how this change unfolds.

While BSE has gained market share in recent months, NSE’s strategic move raises concerns about sustained growth in options trading volumes. If BSE fails to counter NSE’s aggressive positioning, further downside could be in store for its stock. Investors should stay alert to upcoming regulatory changes and market dynamics that could impact valuations.