BSE shares rose up to 4% on October 26 to emerge as top Nifty gainer as brokerage Motilal Oswal Financial Services Ltd upgraded the stock to 'Buy' and sees up to 24% upside.
"BSE’s F&O notional ADTO (Average Daily Turnover) surged 85% in Oct’26MTD vs. the post-CAS reset in Aug’26 (-34% MoM). With the partial CAS reversal effective 7-Dec-26, the recovery has a regulatory catalyst beyond the current volatility-led spike. We expect FY27 ADTO of Rs 216 lakh crore (+16% YoY), with upside potential if the recovery sustains," said MOFSL.
"While BSE has achieved a 30%+ market share in premium turnover, further market-share expansion remains possible. The premium-to-notional ratio has already climbed to 14 bps from 6–7 bps in 2023–24, against 20 bps for NSE. Further convergence, driven by institutional participation and longer-dated contracts, can deliver meaningful earnings upside over and above volume growth," the domestic brokerage further said.
At 10:30 am on October 26, BSE shares were trading 4% lower at Rs 3,364.1 apiece.
Cash market share has improved from 7% to 9%, while NSE’s listing and the opening of its lock-in in March 2027 offer a further catalyst for turnover. Improving smart-order routing and platform participation strengthen the case for a sustained step-up in cash-market activity with the FY26-28 ADTO CAGR expected at 30%, it said.