Shares of the Bombay Stock Exchange (BSE) have witnessed a sharp rally, soaring nearly 17% in just two trading sessions after the company announced a highly anticipated bonus issue. This surge comes amidst stiff competition from its rival, the National Stock Exchange (NSE), which is gearing up for its own developments in the exchange business.
The BSE Board approved a bonus issue in the ratio of 2:1 (two bonus shares for every one share held), attracting renewed investor interest and triggering a wave of fresh buying. Market participants and analysts attribute this sharp uptrend to the exchange’s strong fundamentals, increasing trading volumes, and the bonus issue acting as a positive trigger.
Global brokerage Jefferies upgraded BSE’s stock rating, citing the bonus issue and strong financial performance as key factors. Jefferies highlighted that the bonus could improve liquidity, increase retail participation, and make the stock more attractive ahead of the upcoming financial year. Several domestic brokerages have also issued bullish recommendations, forecasting further upside potential.
“BSE’s consistent growth in equity and derivative segments, coupled with the bonus issue, enhances shareholder value and market confidence,” Jefferies stated in its latest note.
BSE’s stock closed today at ₹1,230, up 7.5% intraday, adding to Tuesday’s 9% rally. The total market capitalization of BSE has now crossed ₹15,000 crore.
Meanwhile, the bonus issue will be subject to shareholders’ approval and regulatory clearances. Once completed, eligible shareholders will receive bonus shares on the record date, which will be announced shortly.
Analysts expect further upside if trading volumes and market sentiment remain robust in the coming weeks. The stock is also benefiting from the increasing interest of institutional investors ahead of the new fiscal year.
