- BSE profit triples to ₹602Cr, marking its 11th straight quarter of record-breaking growth.
- Stock faces a "painful reset" as new RBI rules on broker funding hit trading volumes.
- Traders eye the ₹2,740 floor, can BSE hold support despite the 10% regulatory sell-off?
BSE Limited (BSE) shares are navigating a volatile Tuesday session, as the exchange operator grapples with the fallout from new regulatory hurdles. After a massive 10% plunge on Monday, the stock opened today at ₹2,809.90 before slipping as low as ₹2,740.10 in intraday trading. This “painful reset” follows a surprise move by the Reserve Bank of India (RBI) to tighten the screws on market liquidity.
The RBI “Shockwave”: Why BSE and Capital Market Stocks are Crashing
As reported by Reuters, Indian capital market intermediaries are facing a sudden liquidity squeeze after the RBI over the weekend mandated 100% collateral for bank lending to stockbrokers.
Leverage Squeeze: Brokers must now lock up significantly more of their own capital, with bank guarantees to exchanges requiring 50% collateral backing, of which 25% must be pure cash.
Proprietary Trading Ban: Under the amended RBI Directions 2026, banks are now prohibited from funding proprietary trading, a massive blow considering “prop” desks drive roughly 40% of futures and options (F&O) turnover.
Earnings Impact: According to analysts at Jefferies, the new regulations could result in a 10% hit to BSE’s earnings, as the exchange operator is highly exposed to the high-frequency trading segments impacted by these rules.
BSE Q3 Financials: A Record-Breaking Foundation Meets Regulatory Headwinds
Despite the current stock market jitters, BSE is coming off its strongest fundamental performance in history.
- Consecutive Records: BSE recently reported its 11th consecutive record performance, with total revenue for the December quarter hitting an all-time high of ₹1,334 crore, up 61% year-on-year.
- Profit Surge: Consolidated profit nearly tripled to ₹602 crore, fueled by a surge in equity derivatives, mutual fund transactions, and new listings.
- Operational Efficiency: While revenue soared, operating expenses actually declined by 4%, landing at ₹512 crore.
BSE Share Price Forecast
Technically, the stock is in a short-term “Downtrend” as it tests critical moving averages.
- The Resistance ($2,812 – ₹3,025): For bulls to regain control, BSE needs to reclaim the ₹2,812 intraday high and eventually break back above the ₹3,000 psychological barrier.
- The Support ($2,740 – ₹2,553): The immediate “line in the sand” is today’s low of ₹2,740. If this fails, the next major structural support sits at the 200-day DMA of ₹2,553.
- Market Sentiment: Currently, analyst ratings remain largely positive, with nearly 69% of analysts maintaining a “Buy” rating despite the regulatory volatility.
BSE Price Outlook: Final Takeaway for Traders
BSE enters mid-February 2026 as a tale of two realities: a record-shattering growth engine versus a sudden “liquidity reset”. While the 61% revenue growth and tripling of profits highlight the exchange’s dominance in the F&O and mutual fund segments, the RBI’s new collateral norms have introduced a tactical cooling period.
The crackdown on proprietary trading is a “cleansing” of the market that may hurt short-term volumes but stabilizes the long-term tech-driven ecosystem. For investors, the ₹2,727 support is the level to watch; if the stock stabilizes here, the record-breaking fundamentals are likely to outweigh the regulatory noise as we move toward the next fiscal year.
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BSE FAQs
The drop was triggered by the RBI’s new credit facility norms, which restricted bank funding for proprietary trading and raised collateral requirements for brokers.
As of mid-day Tuesday, February 17, BSE is trading near ₹2,751, down roughly 1.7% from its previous close.
The primary risk is a potential drop in derivative trading volumes as higher funding costs and transaction taxes dampen speculative activity in the F&O segment.