BSE hits four-month low after Jefferies downgrades on risk to prop trading volumes

BSEL Algo

17/08/2026 07:28

** India's stock exchange BSE BSEL.NS down 4.8% at a four-month low of 3,282.9 rupees per share
** Set for fourth consecutive session of losses
** Jefferies downgrades BSEL to "Underperform" from "Hold", cuts PT by 16.5% to 2,940 rupees
** "BSE's revenues from domestic prop traders could be at risk due to headwinds from (Securities Transactions Tax hike), RBI bank guarantee norms and (new) closing auction session," brokerage firm says
** Jefferies highlights that prop traders account for 50-60% of equity options notional turnover, with domestic prop
traders likely accounting for half of the turnover
** RBI has tightened bank lending norms for prop traders, while the new closing method for stocks is leading to higher losses for these traders, as per Jefferies
** More than 4.1 million BSEL shares change hands, ~1.3x of 30-day average daily volume
** Stock rated "Buy" on average by 16 brokerage firms, median PT at 3,950 rupees, per data compiled by LSEG
** YTD, stock up 25.6%
     

(Reporting by Vivek Kumar M)
((VivekKumar.M@thomsonreuters.com;))