Rally in Indian bourse’s shares to get a lift from earnings

The shares have surged more than 70% from a low in March to an all-time high at the end of April
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BSE Ltd.’s recent share rally may get another boost from its upcoming earnings, with analysts expecting quarterly profits to triple thanks to growing investor interest in derivatives.

The shares have surged more than 70 per cent from a low in March to an all-time high at the end of April, as a rival bourse deferred plans that would have increased its market share in equity derivatives. Analysts have largely remained bullish on the stock, with 12 buy recommendations and two holds, according to Bloomberg-compiled data. There is no sell rating on BSE.

For the latest quarter, BSE is expected to report a profit of ₹410 crore from ₹110 crore a year ago, data compiled by Bloomberg show. Revenue may climb 58 per cent to ₹770 crore. The company is due to release results after the close of trading on Tuesday.

There is growing optimism that BSE may emerge a winner in its battle with larger but unlisted peer National Stock Exchange of India Ltd. for market share in the equity derivatives space. The latest confrontation came in March when the NSE scrapped a plan to move to Monday expiries from Thursday less than a month after its initial proposal following curbs by the regulator.

That abated concerns around BSE’s potential loss of market share to NSE and the subsequent impact on its earnings per share, analysts said. BSE has stayed with Tuesday expiry.

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