BSE Shares End Higher After Reports Indicate Launch Of New Monthly Index Options

BSE Ltd.'s stock settled 3.24% higher on Monday after reports stated that the exchange plans on launching more monthly index option products.

The shares closed at Rs 2,771.90 apiece, after rising as much as 3.7% to Rs 2,784.20 apiece intra-day.

The Asia's oldest bourse is also reportedly planning to modify its BANKEX index to increase participation and liquidity. The move, if executed, aims to enhance the exchange's competitiveness against contemporaries in the index derivatives space.

Further, BSE may develop other monthly derivative products and solidify its GIFT City operations, as per reports.

The Securities and Exchange Board of India had rolled out six major changes to the norms that dictate trading in the derivatives market in order to safeguard investors’ interests last year

Rationalisation of weekly derivatives and recalibrated contract size were some of rules that the markets regulator introduced in order to make trading rules for futures and options more stringent. These changes were effective from Nov. 20, 2024, apart from intraday positioning monitoring.

BSE's net profit rose 3.5% in the second quarter of this financial year.

The stock exchange posted a net profit of Rs 558 crore for the second quarter of the fiscal year. This compared to Rs 539 crore in the preceding quarter.

The Ebitda of the bourse saw a 10.5% uptick this quarter as it rose to Rs 691 crore this quarter compared to Rs 625 crore in the preceding quarter.

The margin saw a marginal pull-back as the Ebitda margin for this quarter stood at 64.7%, compared to 65.3% in the previous quarter.

BSE's scrip pared day's gains to settle 3.24% higher at Rs 2,771.90 apiece after rising 3.7% to Rs 2,784.20 apiece intra-day. The stock has risen 56.15% on a year-to-date basis.

Out of 15 analysts tracking the company, 11 maintain a 'buy' rating, three recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 4.4%.