- BSE shares will debut on the Nifty 50 index, replacing Wipro on September 30
- Wipro moves to the Nifty Next 50 index, with shares hitting a 52-week low
- BSE may attract $668 million inflows; Wipro could see $230 million outflows
BSE share price will be in focus on Wednesday as the stock will begin trading on the flagship Nifty 50 index for the first time.
As a part of NSE's bi-annual index rebalancing which takes effect today, September 30, BSE shares will replace IT major Wipro in the Nifty 50 index. Wipro shares will now trade on the Nifty Next 50 index.
The Nifty indices rebalancing exercise took place on Tuesday, September 29, during the monthly expiry session. BSE share price jumped 3.31% to Rs 3,200.00 apiece, while Wipro share price ended 2.95% lower at its 52-week low of Rs 156.79 apiece.
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According to Nuvama Alternative & Quantitative Research's estimates, BSE shares could see inflows to the tune of $668 million as part of its inclusion in the Nifty 50 index. On the contrary, Wipro shares are likely to see outflows worth over $230 million due to the exclusion from the index.
Recently, global brokerage firm Macquarie initiated its coverage on BSE shares with an ‘Outperform' rating and a target price of Rs 4,000 per share. Its bullish outlook on the stock is underpinned by the company's earnings growth, margin expansion and platform optionality.
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It views BSE as “The Challenger” as its pivot to index options has made it a credible competitor to NSE, whom Macquarie calls “The Dominator”. It said that BSE's platform expansion and share gains create revenue and margin optionality, supporting strong cash generation.
Macquarie forecast a 16% revenue CAGR for BSE over FY26-30E, supported by growth in participants and associated share gains in cash equities and F&O. BSE stock price is trading at 21.7x FY29E EV/ EBITDA and 32.7x FY29E PER, largely reflecting execution in the current business.
“We believe the market is yet to fully reflect BSE's potential for share gains in cash equities and F&O, growth in non-transaction businesses, and significant cash generation,” said Macquarie.
BSE Share Price Performance
BSE share price has fallen 6% in one month and has dropped 17% in three months. the stock has 15% in six months and has rallied 53% in one year. BSE shares have delivered multibagger returns over the long-term, with 640% surge in three years, and a staggering 2,220% jump in five years.
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