BSE shares slide over 7% in 2 days after ASM tag triggers profit booking

Shares of BSE have declined sharply over two consecutive sessions, falling a combined 7.3% as of Thursday, after the stock was placed under the Additional Surveillance Measure (ASM) framework by the National Stock Exchange. The regulatory action has triggered profit-taking and heightened investor caution.

On Thursday, the stock fell as much as 3.3% to Rs 2,786.80 on NSE, extending Wednesday’s 4% drop when it touched an intraday low of Rs 2,885.20. These declines follow a period of strong gains, with the stock rallying 120% over the past three months and 213.6% over the past year.

BSE was placed under the ASM framework on Wednesday—a move that typically signals increased regulatory oversight due to sharp price movements or unusual trading volumes. The ASM framework, designed to maintain market integrity, entails heightened monitoring, higher margin requirements, and possible restrictions on intraday trading.

The stock’s inclusion in the ASM list follows a sharp one-month gain of nearly 27.5% and a six-month rise of 51%, alongside elevated trading volumes. Exchanges typically intervene when price movements are not supported by fundamentals or when there is a significant spike in trading activity. While the ASM tag does not imply any wrongdoing, it tends to dampen speculative sentiment by making trading more expensive and riskier.

Technical Indicators Show Mixed Signals

Despite the recent pullback, BSE’s broader technical setup indicates underlying strength. The stock continues to trade above seven of its eight key simple moving averages (SMAs)—from the 10-day to the 200-day—but has slipped below the 5-day SMA, reflecting near-term weakness.

The Relative Strength Index (RSI) currently stands at 69.5, just below the overbought threshold of 70. The Moving Average Convergence Divergence (MACD) remains in bullish territory at 202.4, above both its center and signal lines.

Fundamentals Remain Robust

The recent rally in BSE shares was underpinned by strong Q4 earnings. The exchange posted a 362% year-on-year jump in net profit to Rs 494 crore for the January–March 2025 quarter, while revenue from operations rose 75% to Rs 847 crore.

Operating EBITDA soared to Rs 594 crore from Rs 95.7 crore a year earlier, with margins expanding to 70%. A major growth driver was transaction charges, which more than doubled to Rs 612 crore from Rs 288 crore.

Investment income increased modestly to Rs 70 crore from Rs 55.2 crore in Q3 FY25, while treasury income fell to Rs 44.3 crore from Rs 58 crore a year ago. The company also declared a total dividend of Rs 23 per share—comprising a special dividend of Rs 5 to commemorate BSE’s 150th anniversary, and a regular dividend of Rs 18.

In its earnings statement, the company said it aims to expand its market share across segments by “capitalising on the rapid rise in investor participation and overall market turnover in India.”

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