BSE share price up over 200% in 2023 so far. What’s next?
Indian share market got a reality check earlier this week on Monday as benchmark indices fell after US treasury yields crossed above the 5% mark. The bloodbath wiped off around ₹7.6 trillion of investor wealth. Given the current market conditions and the geopolitical outlook that remains an overhang, it does look like there is going to be a lot more volatility in the coming days.
However, one fundamentally strong smallcap stock has defied all odds and stood tall even when the BSE smallcap index was down a massive 4% yesterday. The stock in question is Bombay Stock Exchange (BSE). The share price of BSE closed at an all-time high of ₹1,695 on Monday 24 October 2023.
In intraday trade, the stock recorded a high of ₹1,798 surging around 13%. Let’s find out why the stock is on a roll… The steep rally in BSE shares on Monday came after the exchange announced revision in its transaction charges for Sensex Options, effective 1 November 2023. BSE said the charges for all other equity derivative contracts would remain unchanged.
According to exchange filings, in October 2023 so far, the average daily turnover (ADTV) for BSE Sensex Options has been at ₹236.2 bn compared to ₹56.2 bn in July 2023. In an exchange filing, BSE said, Premium-based turnover on these nearest-expiry contracts shall be calculated on a daily basis and cumulated at the end of the month. Transaction charges shall be levied based on the slab on an incremental turnover basis on cumulative turnover at the end of the month.
This revision in transaction charges can optimise revenue for BSE by aligning fees with market demand. It would also allow the exchange to remain competitive by offering cost-effective trading to its users. Compared to the National Stock
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