BSE may lose market share in the options segment after expiry rescheduling and liquidity curbs. Finlight Research warns of further correction.

Bombay Stock Exchange (BSE) shares fell nearly 6% in early trade on Wednesday after the market regulator approved the National Stock Exchange’s (NSE) proposal to shift its weekly derivatives expiry from Thursday to Tuesday. 

The Securities and Exchange Board of India (SEBI) directed BSE to move its weekly Sensex derivatives expiry to Thursday to avoid overlaps. These changes are effective September 1, 2025.

Analysts have raised concerns that BSE could lose a significant part of its market share in the derivatives market, as Tuesday expiries have historically attracted higher volumes. 

However, Jefferies maintains a ‘Hold’ rating on BSE with a ₹2,900 target and calls the expiry change a “short-term overhang.”

SEBI-registered analyst Finlight Research observed that BSE's option premium volumes have dropped sharply over the last five trading sessions: to ₹10,824 crore from an ₹15,865 crore in April-May average. 

They attributed this to SEBI’s crackdown on hedge funds, which has tightened liquidity and speculative activity in the market.

Also, BSE’s stock has been added to the Additional Surveillance Measure (ASM) list, signaling increased scrutiny. They believe that this could lead to volatility and cautious investor sentiment ahead. 

The stock is trading below the 20-day moving average (DMA), and Finlight Research warns that it could correct by 20-24% to retest lower zones.

For those considering buying on dips, Finlight identified ₹2,450-₹2,250-₹2,050 as key levels to watch.

Data on Stocktwits shows retail sentiment turned ‘bearish’ on this counter a day ago.

BSE sentiment and message volume on June 18 as of 11:00 am IST. | source: Stocktwits

BSE shares have gained 48% year-to-date (YTD).

Stocktwits’ Yash Upadhyay breaks down BSE in a detailed analysis! Watch <here< to discover views from SEBI-registered advisors. <

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