BSE Ltd. down to 4-month low after reports downgrade on CAS concerns

Bombay Stock Exchange (BSE) Ltd. stock fell for five straight sessions, closing at ₹3308 a piece, down 0.7%, after brokerages downgraded the stock, flagging revenues due to the STT hike, RBI bank guarantee (BG) norms and the Closing Auction Session (CAS).

The stock closed 2.2% down to ₹3,527.00 a piece on August 12 and continued to dip every day for five straight days, down 6.2% till yesterday.

“Multiple headwinds for domestic prop traders to navigate: Domestic prop traders have been hit by three headwinds-STT hike, RBI bank guarantee (BG) norms and Closing Auction Session (CAS),” said Jefferies in a report. “Prop traders account for 50-60% of equity options notional turnover, with domestic prop traders likely accounting for half of the turnover,” the report read. 

“We cut FY27-29e EPS by 5-12% due to slower ADTO growth expectations and higher clearing costs. We are expecting ADTO to recover in 2HFY27 vs 2QFY27 as CAS issues are resolved,” said analysts at Jefferies while downgrading the stock to underperform