Bombay Stock Exchange Shares Surge Over 13% Amid Record Highs and Upcoming NSE IPO

Shares of the Bombay Stock Exchange Ltd. (BSE) surged over 13% on Wednesday, reaching record highs and marking gains in three out of the last four trading sessions. The stock has climbed 32% over the past four sessions, following an impressive 18% jump on Monday.

Despite a slight 3% decline on Tuesday, BSE shares bounced back strongly today, with the current trading price at ₹3,661. However, technical indicators show that the stock is in the “overbought zone,” with a Relative Strength Index (RSI) at 80, signaling potential market corrections ahead.

Investors are closely monitoring BSE amid the anticipated Initial Public Offering (IPO) of the National Stock Exchange (NSE). Recently, the Securities and Exchange Board of India (SEBI) dismissed regulatory violation charges against the NSE and several former employees linked to a 2019 co-location facility case, clearing a significant hurdle for the exchange. The NSE is also seeking a no-objection certificate from SEBI to proceed with its IPO.

In a board meeting on September 17, the NSE set November 2, 2024, as the record date for a significant bonus share issue, planning to distribute four bonus shares for every one held by shareholders.

Market analysts, including Jigar Patel from Anand Rathi, have noted that while BSE shows a strong upward trend, the price is now significantly above its breakout level of ₹3,300, suggesting a potential pullback. Patel advised investors to adopt a “wait and watch” approach before entering new positions, as overbought conditions typically precede corrections.

Since hitting a low of ₹2,115 on July 23, BSE shares have soared 80%, drawing considerable attention from investors in light of the upcoming developments in the market.

ALSO READ: India’s Forex Reserves Surge To $689 Billion, Boosting Economic Stability