BSE Ltd, one of the biggest stock market winners of the last two years, is now testing investor patience after losing nearly Rs 30,000 crore in market value over the past three months. The stock has come under pressure as three worries hit the exchange business at the same time: the new Closing Auction Session, weaker index options volumes and tighter bank guarantee rules for brokers. The concerns have forced brokerages to cut earnings estimates and lower their view on the stock.
Analysts say risks are compounding for BSE because domestic proprietary traders, who form a large part of equity options turnover, are facing pressure from the securities transaction tax hike, RBI’s bank guarantee norms and CAS.
