BSE shares jump 8% on Investec upgrade

Shares of jumped 8% to the day's high of Rs 2,194.95 on the NSE following a stock upgrade from Investec. The domestic brokerage gave a buy rating on the counter for a price target of Rs 2,800.

This signals a 38% uptick over Wednesday’s closing price of Rs 2,033.15. The upgrade comes on the back of a whopping 400% rally in the counter over the past 12 months. The stock has struggled so far in 2024, correcting nearly 1% year-to-date.

The brokerage has cited strong traction in equity derivatives volumes and expectations of market share uptick among key factors behind the upgrade. The company has also witnessed stabilisation in metrics which it believes augurs well for the counter.

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The domestic brokerage expects a further increase in market share gains in light of the rapid scale-up of the BANKEX product while estimating an improvement in the margin profile in Q4 as metrics stabilise.

The leading stock exchange reported a net profit of Rs 108.2 crore in the December quarter in comparison to the profit after tax (PAT) of Rs 51.6 crore in the year-ago period. The bourse achieved its highest-ever quarterly revenue at Rs 431.5 crore in the October-December period of the current fiscal, marking a surge of 76 per cent from Rs 245 crore registered in the year-ago period.

The exchange's mutual distribution platform, BSE StAR MF, saw the total number of transactions soaring 60 per cent to reach 10.9 crore in the third quarter of the current fiscal from 6.86 crore in the corresponding quarter last year.

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The stock is currently trading above its 50-day simple moving average (SMA) while its 1-year beta remains relatively low at 0.5.

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Source: Stocks-Markets-Economic Times