Brokerages Upgrade BSE Target Prices Following Strong Q4FY26 Performance
Brokerages remain bullish on BSE, raise target price and estimates
Business Standard
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Brokerages have raised their target prices for BSE following impressive growth in its Q4FY26 net profit and revenue, driven by a 36% increase in transaction revenue. Despite a slight decline in share price, analysts remain optimistic about BSE's market share gains and future growth potential.
- 01BSE's transaction revenue surged by 36% in Q4FY26, primarily due to options revenue.
- 02Brokerages have raised their target prices, with HDFC Securities setting it at ₹4,300, up from ₹3,800.
- 03BSE aims to increase its cash market share from 7-8% to double digits.
- 04The number of foreign portfolio investors participating in BSE has increased significantly over the past year.
- 05Despite positive outlooks, BSE's share price fell by 1.5% to ₹3,905 on Friday.
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BSE (Bombay Stock Exchange) reported impressive growth in its consolidated net profit and revenue for the quarter ending March 2026 (Q4FY26), prompting several brokerage firms to revise their earnings estimates. Transaction revenue soared by 36% sequentially, largely driven by options trading, with options premium market share increasing to 27.5% from 26.8% in the previous quarter. HDFC Securities has upgraded its target price for BSE to ₹4,300 from ₹3,800, while Motilal Oswal Financial Services (MOFSL) set a target of ₹4,400. Nuvama Institutional Equities also raised its target to ₹4,570. Despite the optimistic projections, BSE's share price declined by 1.5% to close at ₹3,905. Analysts noted that while BSE's market share in the premium pool has improved to 6%, the overall contribution to total volume remains low. BSE aims to increase its cash market share and expand the number of participating foreign portfolio investors (FPIs) from 520 to 800. Additionally, the Securities and Exchange Board of India (Sebi) has implemented a 30-day lag for sharing price data for educational purposes, effective July 1.
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The growth in BSE's transaction revenue could lead to increased trading opportunities for investors, potentially resulting in lower costs and higher returns.
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