Shares of the country's oldest exchange BSE fell over 5 per cent in Monday's (March 3, 2025) trade despite a resilient market mood. At around 9:35 am, BSE shares traded weak by 3.8 per cent or Rs 177.3 at Rs 4,456.4 apiece on the NSE, while at the day's low it hit levels of Rs 4,395.7 apiece.

The steep loss in the counter was triggered after foreign brokerage Goldman Sachs reiterated its 'neutral' rating on the stock with the target slashed to Rs 4,880 from the earlier Rs 5,650. The new set target implies a potential upside of just over 5 per cent from the previous close.

The stock has been on a continuing slide since February 20 and in total six sessions has slumped over 26 per cent considering today's lowest price.

The foreign brokerage believes that the proposed changes and upcoming monitoring of limits could reduce activities from proprietary traders which account for 70 per cent of the company's average daily turnover.

In its latest consultation paper issued on February 24, the market watchdog Securities and Exchange Board of India (SEBI) has come up with a new method to evaluate the risk investors are exposed to.

The market regulator has proposed to change the method to calculate open interest (OI) in equity derivates from notional terms to a future-equivalent or delta-based approach.

In the past two trading sessions, BSE shares have corrected nearly 16 per cent and as per the brokerage the drag comes largely pricing in risk to industry volumes from implementation of the proposed rules 

Furthermore, according to Goldman Sachs, this will lower the industry's options premium to cash equity turnover from 0.4x to 0.3x.  Consequently, the average daily premium traded for index options contract market share is unlikely to exceed 30 percent, which was at 22 percent in February.

Likewise, the brokerage has slashed FY26/27/28E EPS estimates by 14 per cent/12 per cent and 11 per cent, respectively.

BSE share price performance

BSE shares in the last one year have climbed 92 per cent, while over three years it has generated a multibagger return to the tune of 548 per cent.