BSE shares have taken a hard hit. Since the market regulator SEBI went after trading giant Jane Street, BSE shares have dropped by 10%. On Tuesday alone, they slipped nearly 4% as panic spread across the capital markets.
This drop comes after SEBI accused Jane Street, a major foreign trading firm, of using unfair strategies to manipulate Indian markets. SEBI also banned the firm from accessing Indian securities. That’s a big deal, considering Jane Street made over $2.3 billion in equity derivatives in India just last year.
Why BSE Is Feeling the Heat
BSE, or the Bombay Stock Exchange, is Asia’s oldest stock market. But even old giants can bleed. On July 8, BSE shares were trading at Rs 2,536, down 3.8% from the previous day.
And BSE isn’t alone. Other capital market players like Angel One, CDSL, and 360 ONE WAM also saw their stocks fall by up to 3.5%. The whole sector seems to be under pressure.
What Are the Experts Saying?
Not everyone is hitting the panic button. Jefferies, an international brokerage, says the impact of Jane Street on BSE is small. They estimate only about 1% of BSE’s derivative turnover came from Jane Street. Since BSE expects over half its revenue from derivatives by FY26, this might not be a big blow.
According to Jefferies, even if Jane Street vanishes completely, the impact on BSE’s earnings will only be around 60–70 basis points. In short, they believe the fall in BSE shares is overdone.
But Risks Still Remain
ICICI Securities isn’t so sure. They warned that the fallout from SEBI’s crackdown could lower volumes in the market. There’s also concern about BSE’s high valuation. Right now, it’s trading at over 45 times FY27 earnings. That’s steep.
They also noted that BSE’s average daily turnover (ADTV) in premium segments fell 12.4% in June. That’s after a strong rise in April and May. Clearly, something’s changed.
So, What Now?
Investors are cautious. Even though the fundamentals look okay, the fear of more regulation and high valuations is pulling BSE shares down. The market doesn’t like surprises, especially when they come from the regulator.
For now, it’s a waiting game. Will SEBI go after more firms? Will BSE bounce back? Or is this the start of a deeper correction?
Either way, the message is loud and clear—regulatory risks are real, and no one’s too big to fall.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
Also Read Jane Street to Contest SEBI Ban, Calls Trading Strategy ‘Standard Practice’
