Prabhudas Lilladher maintained its buy rating on BSE, but cut its target price to Rs 4,025 from Rs 4,850 after the implementation of the Closing Auction Session (CAS) led to a slowdown in derivatives volumes.
The brokerage said the impact of CAS, compounded by tighter bank-guarantee norms and higher securities transaction tax (STT) on futures and options transactions, could constrain BSE’s near-term growth. However, it remains positive about the exchange’s market position and long-term growth prospects.
