EXPLAINED | Should you buy this capital market stock after 4000% return in long term? Or book profit?

The brokerage has highlighted that the Securities and Exchange Board of India (SEBI) may extend options tenure from weekly to monthly expiries which could impact BSE trading volumes.

Despite this, MOSL noted that previous regulatory reforms have helped BSE boost its market share in premium turnover from 11.4 per cent in October 2024 to 24.4 per cent in September 2025.

Expiry day trends also shifted, with the move of expiry to Thursday increasing expiry day volumes to 50-55 per cent, while Friday activity declined.

The domestic brokerage has added that broker engagement initiatives and a combined order book strategy have strengthened execution quality and enhanced cash segment flows.

However, MOSL’s analysts warned that regulatory tightening in the derivatives segment is a key risk. “Removing weekly expiries could potentially cut FY27 derivatives revenue by 35 per cent and profit before tax by 27 per cent, highlighting the sensitivity of BSE’s earnings to policy changes,” they said.

Here are key takeaways from the brokerage’s report:

• SEBI’s shift from weekly to monthly options expiries may impact trading volumes
• Previous regulatory reforms have boosted BSE’s premium market share
• Expiry day shift increased Thursday activity but reduced Friday volumes
• Regulatory tightening remains a risk, potentially hitting FY27 derivatives revenue and PBT

BSE Share Price Target
MOSL has maintained a ‘neutral’ rating on the capital market stock BSE with a target of Rs 2,250, which indicates a 5.66 per cent decrease from Friday’s (October 10) closing.

Following this, the BSE stock slumped as much as 1.25 per cent, hitting an intra-low of Rs 2355, according to the NSE. At 10:37 am, the stock trading at 2,373.10, down 0.50 per cent.

BSE stock vs BSE Sensex: Past performance

BSE shares have delivered a mixed performance across different time frames when compared with the broader BSE Sensex.

In the short term, BSE shares outperformed the index: over the past month, the stock gained 6.78 per cent.

YTD basis, the capital market stock declined 31.51 per cent.

Over the past year, the largecap stock declined 48.36 per cent,

Long-term performance presents a different story. Over the past five years, BSE shares skyrocketed nearly 4000 per cent, outpacing the headline index.

Here is a summary how the BSE stock performed against the BSE Sensex: