Financial services firm Prabhudas Lilladher has adjusted its outlook for the Bombay Stock Exchange (BSE), revising its target price downward from Rs 4,850 to Rs 4,025. Despite the reduction, the brokerage firm continues to maintain a 'Buy' rating, signaling confidence in the company's long-term trajectory.
The revision comes as the exchange grapples with a visible contraction in derivatives trading volumes. Analysts identify the recent implementation of the Closing Auction Session (CAS) as a primary factor dampening market participation in this segment.
Beyond structural changes to trading sessions, the report highlights additional pressures facing the exchange. The brokerage noted that heightened Securities Transaction Tax (STT) and more stringent bank guarantee requirements are creating significant short-term obstacles for investors and traders alike.
While these hurdles suggest a challenging quarter, the firm’s sustained positive outlook remains anchored in BSE's broader strategic positioning within the Indian capital markets, suggesting that the current dip may be viewed as a temporary friction point.
