(Reuters) -Shares of India’s BSE Ltd slipped on Wednesday after the exchange operator shifted weekly derivatives expiry to Thursdays, in a move analysts said would result in market share loss to bigger rival NSE.
The listed exchange said late on Tuesday it will shift the expiry of its weekly equity derivative contracts from Tuesdays starting Sept. 1 after approval from the market regulator, while larger unlisted rival NSE will shift its expiry schedules to Tuesdays from Thursdays.
Weekly derivative expiries typically see peak volumes, making the day key for exchanges to capture market share and trading fees.
BSE ended the day 1.2% lower.
At least three brokerages cut their target prices on the stock, data compiled by LSEG showed.
Currently, BSE benefits from having three weekly expiry days versus NSE’s two, and reversing that could dent BSE’s volumes by 10%–15%, analysts at UBS said, adding such a drop may hit profitability by up to 6% and cost 210 basis points in terms of market share.
Goldman Sachs expects the exchange to gain 0.5 percentage points in index options market share monthly, down from the 0.7–0.8 percentage points it has gained since October 2023.
“We would expect BSE’s market share to drop to about 21% from the current about 24% in the month of September 2025,” Goldman Sachs said.
BSE Managing Director Sundararaman Ramamurthy said a Thursday expiry “aligns well with global market practices” and gives investors more time to respond to market developments and optimise their positions as they build their weekly derivatives strategy when the week starts.
(Reporting by Jayshree P Upadhyay in Mumbai, Hritam Mukherjee and Yagnoseni Das in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
