BSE share price: Shares of BSE Ltd declined nearly 2 percent to Rs 3,600 in afternoon trade on Wednesday, giving up some of the previous session's 5 percent rally, even as Kotak Institutional Equities initiated coverage on the stock with a Buy rating. The brokerage cited the exchange's growing strength in index options and healthy prospects for its other businesses.
Kotak assigned a target price of Rs 4,000 per share on BSE stock, implying an upside of more than 9 percent from Tuesday's closing price. Kotak expects BSE to deliver double-digit revenue and earnings growth over the next three years, supported by its expanding derivatives franchise and steady growth in cash equities, mutual funds and colocation services.
Despite Wednesday's decline, BSE shares have gained 37 percent so far in 2026, significantly outperforming the Nifty 50, which has fallen 9 percent over the same period. The exchange operator's market capitalisation stood at approximately Rs 1.47 lakh crore.
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Kotak Institutional Equities said BSE has established a strong position in the index options segment, with trading liquidity increasingly extending beyond contract expiry days. The brokerage's assessment suggests that BSE's derivatives business is developing a broader trading base, rather than relying predominantly on the heightened activity typically associated with expiry sessions.