BSE Share Price Slips 8% From Record High; Analysts Cite Valuation Risks. Buy, Sell or Hold?

BSE Share Price Declined Over 4% on Thursday, Extended Losses for the Second Session, as Investors Booked Profits Following A Sharp Rally. Bse shares fell as much as 4.24% to an intraday low of 2,760.00 apiece on the nse.

The fall in bse share price today Follows a 4% drop in the Previous Trading Session. BSE share price Hit a record high of 3,030 apiece on 10 June 2025, and is down more than 8% from that level.

BSE Shares Came Under Selling Pressure after Being Placed Under The Additional Survelance Measure (ASM) Framework by the National Stock Exchange to Curb Speculative Activity. The move mandates a 100% margin requirement for trading in bse shares, which are listed on its private help rival exchange, nse.

The Action Follows a Nearly 140% Rally in BSE’s Share Price Since its 2025 low, Driven by Increased Traction in India’s Equity Derivatives Market and Optimism SurRRONING NSE ‘ Public offering (IPO).

At a market capitalization of Around 1.13 Lakh Crore, bse shares are trading at a premium to its peers in the bfsi sector. Analysts have turned cautious on the bse stock, citing elevated valuations and associateed risks.

Valuation Concerns Weigh on Sentament

BSE is Currently Trading at a Stretched Valuation, with a Projected Fy27E Price-to-Earnings (P/E) Multiple of 35.1x-Significantly Higher Than Sector Average. Analysts at Arihant Capital Believe Such Valuations are unjustified giving the company’s reliance on external factors and expenses to market valatily.

“Despite Strong Financial Performance in FY25, BSE Ltd. Company’s Growth Prospects are overshadowed by macroeconomic uncertainteies and competitive pressures, “Arihant Capital Said in A Note.

Fundamentals and Risks

BSE’s Equity Derivatives Segment has been a key Growth driver, with average daily premiums turns turns 293.3% year-or-yar. However, this growth remains highly sensitive to broader market sentiment and valati. The Fluctuations Seen in Q4 FY25 underscore the instability of this rev the stream, Arihant Capital Noted.

Additional, a significant portion of clearing charges is paid to national clearing corporation ltd. (NCL), impacting BSE’s Profitability. While Negotiations are underway to Reduce these costs, the outcome remain uncertain, posing a risk to margin expansion.

The brokerage also flagged Concerns about external headwinds, including global geopolitical tensions, which count weight weight on bse’s performance despite the brooder resilience of Indian Capital Markets.

Moreover, the proposed dividend payout of 23 per share (28.4% of annual rights) Reflects Strong Financials but Raises Concerns about Capital Allocation. Continued infrastructure investments May Strain Cash Flows, Limiting Flexibility for Future Growth Initiatives, said the brokerage report.

Given these concerns, Arihant Capital Recommends A ‘Sell’ Rating on BSE Shares and Sugges Investors to Consider Reallocating to more Stable and Diversified Opportunities with the BFSI SOCTOR.

Technical outlook

BSE share price is exhibiting signs of topping out near 2,980, with the stock significantly extended from its 50-day and weekly moving average, noted anshul jain, head of research at lakshmishree investments.

“Such overextation often precedes a meaning revelation phase. 2,385 appears highly likely. Traders should exercise caution at elevated levels and watch for Bearish Price Action Confirmation Before Initiating Short Positions, ”Jain said.

Echoing a cautious view, ruchit jain, vice presiding – Equity Technical Research at Motilal Oswal Financial Services, Pointed Out that Following A Shaarp Rally of Nearly 140%, The Momentum Idicor Moved Into Overbough Territory, Suggessting The Possibility of a Time-with Correction.

“We may see a pullback in bse shares upto 20-day exponential moving average (Dema) which is planed at 2,650 Level. A breach of this support could open the door for further downside legs 2,500, “He said.

At 12:00 pm, bse share price was trading 4.08% lower at 2,764.90 apiece on the nse.

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