Tag: BSE

BSE Q4 Results | Stock exchange offers dividend of ₹15, net profit up 21%, revenue doubles

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s leading stock exchange BSE on Wednesday (May 8) reported a 20.7% year-on-year (YoY) jump in consolidated net profit at ₹106.9 crore for the fourth quarter that ended March 31, 2024.

In the corresponding quarter, BSE posted a net profit of ₹88.6 crore, the company said in a regulatory filing. The company’s consolidated revenue from operations surged 110.04% to ₹544.8 crore against ₹259 crore in the corresponding period of the preceding fiscal.

The BSE said it has registered an 86% YoY growth in net profit to ₹411 crore for the financial year 2023-24 from ₹221 crore in FY23. Also, the exchange recorded its highest-ever revenue of ₹1,618 crore, marking a growth of 70% from the preceding fiscal.

Also Read: Pidilite Industries declares dividend of ₹16 per share, misses Q4 profit estimates

For FY24, BSE traded 11.3 billion contracts in the equity derivatives segment, since its relaunch on May 15, 2023, generating a total revenue of ₹176 crore. The total number of transactions in BSE StAR MF grew by 55% to reach 41.1 crore transactions during FY24 from 26.5 crore last year, with BSE continuing a market share of 89%.

The consolidated operating EBITDA for FY23 jumped 103% to ₹399.9 crore from ₹197.4 crore in the previous year, with the EBITDA margin expanding to 29% from 24%, the company added.

“We have created a strong portfolio of businesses, a rapid pace of innovation, and a strategy that is well understood. Now it’s time to widen and deepen our existing product offerings, and we feel that we are on the right track,” BSE MD and CEO Sundararaman Ramamurthy said.

The exchange said S&P Dow Jones Indices LLC is in discussion with the BSE for divestment of its equity stake in Asia Index Private Limited, a 50-50 joint venture with BSE. “This will be an important area of focus in the coming year,” the BSE said.

Also Read: Gujarat Gas declares dividend of ₹5.66 per share as Q4 numbers beat estimates

The exchange has declared a final dividend of ₹15 per equity share of face value of ₹2 each. This is subject to the approval of shareholders at the upcoming annual general meeting.

The results came after the close of the market hours. Shares of BSE Ltd ended at ₹2,815, up by ₹7.55, or 0.27%, on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BSE changes expiry day for single stock derivatives, effective July 1

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay Stock Exchange (BSE) on Tuesday (April 30) said it has altered the expiry day for single stock derivatives, set to be implemented from July 1, 2024.

In a recent announcement, the BSE highlighted that the expiry day for monthly contracts of single stock derivatives will now be shifted to the second Thursday of each calendar month. Trading members have been advised to refer to previous notices issued by the exchange regarding changes in the expiry day of stock derivatives.

As per the latest directive, existing monthly contracts of stock derivatives in the equity derivatives segment with an expiry day scheduled as the last Thursday of the calendar month (adjusted for holidays) will expire on June 28, 2024. Subsequently, these contracts will be removed from the contract master file, rendering them unavailable for trading from July 1, 2024, onwards.

Also Read: NSE, BSE to remain closed on these days in May; mark your calendar

“All the existing monthly contracts of Stock Derivatives in the equity derivatives segment with expiry day as the Last Thursday of the Calendar Month (if Thursday is a holiday then the previous working day) will get expired on June 28, 2024, and will be removed from contract master file at end of day of June 28, 2024. These contracts will not be available for trading from Monday, July 01, 2024,” the BSE said.

In preparation for the transition, new contracts of stock derivatives featuring three serial monthly expiries will be generated on June 28, 2024, at the end of the day.

“New contracts of stock derivatives with three serial monthly expiries with expiry day as 2nd Thursday of the Calendar Month (if Thursday is a holiday then the previous working day) will be generated on June 28, 2024 end of day in the equity derivatives segment for trading with effect from July 01, 2024,” the BSE added.

It’s worth noting that this change applies solely to the expiry day of monthly contracts of single stock derivatives, with no adjustments to the expiry day of any other contracts within the equity derivatives segment.

Also Read: BSE shares fall 18%, most since listing, on regulatory fees issue

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BSE transaction charges may rise, fear some analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Brokerage firm HDFC Securities called the recent issues surrounding the Bombay Stock Exchange (BSE) Ltd., a regulatory setback, adding that it will have to pay a regulatory fee of up to ₹310 crore in financial year 2026, which is nearly 22% of its projected net profit for that financial year.

A way to offset the impact the higher regulatory fees is to increase the transaction charges by 25% and reduce clearing charges by nearly 10%, which will reduce the impact to only 5% and 2% for financial year 2025 and 2026 respectively, the brokerage wrote in its note.

BSE currently charges ₹26 per billion on options premium and the clearing and regulatory cost is 29% and 38% of the derivative revenue.

“The regulatory fee impact for BSE is amplified because it collects nearly one-third premium for the same notional volume compared to NSE and pricing is nearly 25% lower,” the brokerage said.

BSE shares witnessed their biggest single-day drop since listing after it was asked to cough up a higher regulatory fee to SEBI, based on the annual turnover calculated from the notional value of its options contracts.

Until now, both BSE and MCX were calculating the annual turnover based on the “premium value” for options contracts.

For example, consider a Call option with a lot size of 10, a strike price of ₹1,000 and a premium of ₹100. Buying one lot would mean a premium turnover of ₹1,000, but the notional turnover will be the sum of the strike price and premium multiplied by the lot size, which will come up to ₹11,000.

HDFC Securities said that it has not changed its estimates on BSE despite the developments and will await more clarity on the same. It projects BSE’s revenue and Earnings per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 34% and 42% respectively, over financial year 2024 and 2026, led by a revival in transaction revenue.

The brokerage has retained its “buy” rating on the stock with a price target of ₹3,100.

Shares of BSE have recovered marginally from the day’s lows, but continue to trade with losses of 12.6% to ₹2,806.55.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BSE shares fall 18%, most since listing, on regulatory fees issue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of the Bombay Stock Exchange (BSE) Ltd. declined as much as 18% on Monday. This is the biggest single-day drop since the stock has seen since its listing in 2017.

The stock was in focus after it was asked to pay its regulatory fee to market regulator SEBI based on the annual turnover calculated from the ‘notional value’ of its options contracts.

In an options contract, the notional value is the underlying asset’s market price multiplied by the specified amount of the contract. For example, if one options contract represents 100 shares of a stock that trades at ₹50, the notional value would be ₹5,000.

BSE had calculated the annual turnover based on the premium value for options contract. It has to pay the differential regulatory fee for the past period along with interest.

Premium value is the price at which the options holder gets the right to buy or sell the underlying asset at a predetermined price on a specified date.

BSE has been asked to pay a differential fee of ₹165 crore, of which ₹69 crore is from financial year 2007 to financial year 2023, and ₹96 crore for financial year 2024.

MCX, BSE’s peer company, has also been asked to pay a differential fee of ₹4.43 crore.

Brokerage firm Jefferies wrote in its note that derivatives make up for nearly 40% of financial year 2025 and 2026 profit estimates and that the higher fees can impact its Earnings Per Share (EPS) by 15% to 18%.

“As derivatives volume growth remains ahead of estimates, price hikes and improved premium quality can fully offset the EPS impact,” Jefferies wrote in its note.

The brokerage has downgraded the stock to “hold” from its earlier rating of “buy” also cut its price target to ₹2,900 from ₹3,000 earlier. It has cut its financial year 2025 and 2026 estimates by 6% to 9%.

Shares of BSE are trading 17% lower at ₹2,672. Despite the drop, the stock has risen over 400% in the last 12 months.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

From ₹458 to ₹3,137 in a year: BSE shares surge to another record high

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of the Bombay Stock Exchange (BSE) Ltd. are trading with gains of 10% on Tuesday and have hit a new record high in today’s trading session. The stock is up for the second day in a row.

BSE shares have risen 35% in the last one month. For the month of April, the stock has risen 24.4%, following a 6.3% gain in March, a 2% gain in February and a 4.6% gain in January. Barring December 2023, the stock had gained every single month between April and November last year.

Over the last 12 months, the stock has risen nearly 7x. The stock had made a 52-week low of ₹458 last year.

Last month, brokerage firm Investec had upgraded BSE to “buy” from its earlier rating of “hold” and had also placed a price target of ₹2,800 on the stock. Post Tuesday’s move, BSE has crossed Investec’s price target.

Investec had written in its note that it is expecting an improved margin profile for BSE in the March quarter and anticipates further market share gains, given the rapid scale-up of its BANKEX product.

BSE’s options market share has nearly tripled sequentially to 15% in March 2024 from 4.2% in December.

Out of the eight analysts that have coverage on BSE, six of them have a “buy” recommendation, while the other two have a hold. The stock is now trading higher than most of the analysts’ price targets. Only a firm named ULJK financial services has a price target of ₹3,800 for BSE.

Based on the 12-month Bloomberg consensus price target, the street expects a potential downside of 3% for BSE going forward.

“Currently BSE is trading at one-year forward PE multiple of 40x on FY25 basis and given the strong earnings potential over the next few years driven by operating leverage, we expect this premium valuation to sustain,” said Gautam Baid of Complete Circle Stellar Wealth PMS on April 4.

“However, the two key risks with BSE’s business. One, any significant regulatory clampdown on derivative segment can be a headwind and second, any slowdown in the equity market participation can also be a headwind for the BSE because its fortunes are linked to the equity markets,” he added.

Shares of BSE are trading 10% higher at ₹3,135.95.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indraprastha Medical shares hit 52-week high on stake acquisition by Quant Small Cap Fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of specialty tertiary care hospital Indraprastha Medical Corporation Ltd (IMCL) surged more than 7% to hit a fresh 52-week high on Tuesday after Quant Small Cap Fund acquired 5.5 lakh shares in the company for nearly ₹14 crore.

The purchase of 5,50,000 shares, representing a 0.59% shareholding, was made at an average price of ₹249.59 per share, according to bulk deal data disclosed to the stock exchanges on Monday.

The New Delhi-based super specialty tertiary care hospital is a collaboration between Apollo Hospitals and the Delhi Government. IMCL operates two hospital facilities, one located in New Delhi and the other in Noida, Uttar Pradesh.

Following the positive development, the stock surged as much as 7.8% to hit its 52-week high of ₹262.05 apiece on the BSE.

This has helped in driving the company’s market capitalisation to more than ₹2,370 crore.

As of March 2024, together, the promoters own 51% of the company’s stake. The Government of NCT of Delhi holds 26%, and the Apollo Hospitals Group owns 25%. However, the government of NCT of Delhi has not yet dematerialised its shareholding.

Earlier this month, HDFC Bank divested a substantial portion of its shares in Indraprastha Medical Corporation Ltd (IMCL).

According to a regulatory disclosure on April 4, the bank confirmed the sale of a 3.03% equity stake in IMCL, amounting to ₹55.46 crore. This divestment took place through several transactions on the National Stock Exchange (NSE) between February 29 and April 4, 2024.

Throughout this period, HDFC Bank offloaded a total of 2,781,897 shares of IMCL, resulting in a decrease in its ownership stake in the company from 5.48% to 2.45%.

Shares of IMCL were trading 5.26% higher at ₹258.2 apiece on the BSE at 12:14 pm.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lok Sabha Polls 2024: Here is how the markets fared in Modi government’s second term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It has been an eventful five-year term for the Narendra Modi-led government and even more so for the market. It has overcome one headwind after another to get to where it stands today.

No one can forget the COVID-19 pandemic and the lows of 7,511 that the Nifty made. The index trebled from those levels just a few weeks ago.

The pandemic was not the only headwind. The market went through the Russia-Ukraine war, rising oil prices, and US Fed uncertainties, which continue to date, yet remained resilient for most of it.

It has witnessed the mega Life Insurance Corporation (LIC) IPO, the Adani-Hindenburg scandal, the rise and rise of GQG, which has now become the biggest foreign investor in India’s equity markets, the mega PSU rally of the last 12 months, the trend of foreign promoters cashing in, and so much more.

Amidst all this, the Nifty, Sensex, and broader markets made new highs this month. The Sensex even crossed the 75,000 mark and market participants expect the level of 100,000 on the index sooner than later.

Let’s now go to numbers and the Nifty has nearly doubled in the last five years. To be clear, we are comparing returns from May 23, 2019, which was when the Bharatiya Janata Party and Prime Minister Modi got a second term in office. The broader markets have done well. The midcap index has nearly trebled, and the smallcap index is also up 2.5x.

Barring FMCG, almost all the indices gained at least 100% over the last 12 months. The realty index has emerged as the best performer, gaining nearly 248% during this term.

No index heavyweight features among the top performers on the Nifty 50 since May 2019. The names though, are not entirely surprising.

Adani Enterprises features as the top Nifty gainer. Tata Motors, Tata Consumer and Bharti Airtel also make an appearance here.

Only one Nifty constituent has delivered negative returns during this term, and that is IndusInd bank, which has declined 8% in the last five years. The underperformers, too, are the usual suspects, HUL, HDFC Bank and other major private banks like Axis and Kotak.

When we go sector-wise, autos lead the pack and take a look at Tata Motors DVR – over 650%. Tata Motors returns here, but Balkrishna Industries has also tripled in value since May 2019.

Metals continue to remain in focus, Hindustan Copper is up almost 7x in five years. And although Vedanta and Hindustan Zinc are recent outperformers, they are the worst performers on the index over five years.

It may be under pressure recently, but over the past five years, midcap has easily outperformed their largecap peers.

Take a look at Persistent Systems, up over 1,000%, Coforge, up 4x, L&T Technology Services has tripled, and although Infosys and TCS have doubled and nearly doubled in five years, they could not match up to their midcap peers.

On to pharma and that was a big outperformer during COVID-19 but has seen some reversion to mean since then. Laurus Labs saw most of its surge during the pandemic and is currently struggling, but among the underperformers, include the likes of Gland Pharma and Biocon, stocks that have barely moved during Modi 2.0.

Real estate was the best sector. And here, too, most stocks have at least doubled in value. However, Sunteck is an underperformer, down 10% and sticks out like a sore thumb in a list of outperformers.

FMCG struggled and is possibly the only index that does not have triple-digit returns in the last five years. But specific stocks like Varun Beverages have been winners all along. Up over 900% during this period, as are Radico Khaitan and Tata Consumers. But ITC, despite the recent outperformance, features on the list of underperformers, as does HUL which has just not moved.

The flavour over the last 12 months has been PSUs. IRCTC and HAL are both up over 1,000% while BEL is up over 500%. The underperformers here feature oil marketing companies and ONGC.

The broader markets did well. The midcap index has nearly tripled in the last five years, with seven stocks seeing returns of over 1,000%. Fact, Dixon, and Mazagon Dock are some outperformers.

But if there are wealth creators, there are wealth destroyers, too. Paytm, Zee, Bandhan Bank, UPL – the recent Nifty exclusion.

The smallcaps underperformed their midcap peers but also surged 2.5x during Modi 2.0.

Here are the top movers – Tata Tele, JBM Auto, Titagarh and the list of underperformers features only four names. RBL Bank, City Union, Piramal Pharma, and PVR Inox.

So, it’s been a roller-coaster for the markets. The country goes to polls starting today and the markets are looking to rebound from the recent sell-off.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BSE to implement limit price protection mechanism in equity derivatives segment from today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay Stock Exchange will implement a limit price protection (LPP) mechanism in its equity derivatives segment from Tuesday, April 16 2024.

The new mechanism will have restrictions on the price range for orders in the derivatives market. The trading system will accept limit price orders within 60% of the reference price for option contracts and 3% of the reference price. Orders that are placed outside this price range will be rejected.

When the BSE announced the same on April 5 in a stock exchange filing, it had said the exchange would implement the LPP mechanism in view of strengthening the pre-trade risk control measures in the equity derivatives segment.

The LPP mechanism will be in place to protect against unusual trading activities and prevent erratic trades. When the price of an order is placed outside the mentioned range, the system will automatically reject it.

Also Read: Varun Beverages gets an ‘overweight’ initiation from Morgan Stanley; Find out why

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market holiday alert: No trading on May 20 in NSE, BSE for Lok Sabha elections in Mumbai’s 6 constituencies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The NSE has declared a trading holiday on May 20, as polling is scheduled for Mumbai’s multiple Lok Sabha seats on that date.

“The exchange notifies Monday, May 20, 2024 as a trading holiday on account of Parliamentary Elections in Mumbai. Members are requested to take note of the same,” said NSE in a circular on April 8.

#NewsFlash | #NSE announces trading holiday on May 20, 2024, due to Parliamentary elections in #Mumbai#LokSabhaElections2024 #ParliamentaryElections pic.twitter.com/mktqksMzQj

— CNBC-TV18 (@CNBCTV18Live) April 8, 2024

Under the Negotiable Instruments Act 1881, the local governments declare a voting holiday on polling days.

The Election Commission last month announced a five-phase polling schedule (April 19, April 26, May 7, May 13 and May 20) for Maharashtra’s 48 parliamentary constituencies.

The last phase of polling in Maharashtra on May 20 will see voting in Dhule, Dindori, Nashik, Bhiwandi, Kalyan, Thane, Mumbai North, Mumbai North West, Mumbai North East, Mumbai South, Mumbai South Central, Mumbai North Central and Palghar.

Apart from the May 20 market holiday, no trading will happen on May 1 due to Maharashtra Day. Before that, in April, markets will be shut on Id-ul-Fitr on April 11 and Ram Navami on April 17.

Is stock market closed tomorrow for Gudi Padwa 2024?

The stock market will remain open on April 9 despite the Gudi Padwa holiday or Marathi New Year which will be celebrated across Maharashtra. It is not listed as a trading holiday in the full list of Indian stock market holidays 2024, available on the official website of BSE and NSE.

Stock market holiday in 2024: Full list

For the rest of 2024, the domestic stock market will be closed for a total of 10 days apart from weekly holidays. Stock markets will be closed for two days in April, one day each in May, June, July, August, and October. Apart from this, the market will be closed for two days in November. However, the market will be closed for one day in December.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BSE to introduce Limit Price Protection mechanism in equity derivatives segment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a move to strengthen pre-trade risk control measures, the Bombay Stock Exchange (BSE) on Friday (April 5) said it will be implementing a Limit Price Protection (LPP) mechanism in its equity derivatives segment, effective April 16, 2024.

The new mechanism will place restrictions on the price range for orders in the derivatives market. Limit price orders within 60% of the reference price for option contracts and 3% of the reference price for futures contracts will be accepted by the trading system. Orders placed outside this price range will be rejected.

#NewsFlash | @BSEIndia will implement Limit Price Protection (LPP) Mechanism with effect from Tuesday, April 16, 2024 pic.twitter.com/1kEudHJteU

— CNBC-TV18 (@CNBCTV18Live) April 5, 2024

“With a view to strengthening the pre-trade risk control measures in equity derivatives segment, Exchange will implement LPP Mechanism with effect from Tuesday, April 16, 2024,” the BSE said in a circular on Friday, April 5. Consequently, the existing Price Reasonability Check will no longer be operational from the said date.

The exchange has scheduled a mock trading session on April 13, 2024 (Saturday) to facilitate a smooth rollout of the new mechanism and allow market participants to get acquainted with the changes.

The LPP mechanism aims to protect against unusual trading activities and prevent erratic trades. When the price of an order is placed outside the defined range, the system will automatically reject the order.

In October 2022, the National Stock Exchange (NSE) also introduced a similar LPP mechanism in its futures and options segment to strengthen pre-trade risk controls and ensure orderly trading.

The BSE stated that it may periodically review the usage of these enhancements and implement further changes based on feedback from market participants and as deemed necessary.

The implementation of the Limit Price Protection mechanism is expected to enhance the overall risk management framework of the BSE’s equity derivatives segment, providing greater stability and safeguards for investors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow