BSE shares rallied 10.7% to Rs 2,718.70, leading a surge in capital market stocks following supportive comments about the Futures & Options (F&O) segment. The rally was fueled by clarifications from government officials addressing market concerns over potential changes to F&O trading.

Market Performance

Capital market stocks posted significant gains:

Government Stance on F&O Segment

Finance Minister Nirmala Sitharaman provided reassurance to the market:

• The government is not looking to shut down the F&O segment
• Focus is on removing roadblocks in the segment
• Emphasized investor responsibility in understanding risks

SEBI's Position

SEBI Chairman Tuhin Kanta Pandey reinforced the government's stance:

• Any future changes would involve proper consultation papers
• Implementation would be in a calibrated manner

Market Context

The surge in capital market stocks comes amid:

• Earlier speculation around SEBI's proposal to review weekly options expiries
• Volatility in capital market stocks due to these speculations

The clarifications from government officials have helped alleviate market concerns, leading to the positive movement in stock prices of exchanges and related companies.

Investors are advised to stay informed about any future developments in the F&O segment and continue to exercise caution while trading in these instruments.

BSE shares experienced a significant uptick, rising 2.6% to ₹2,542.8, as traders bolstered their bullish derivative positions following SEBI's reassurance that a blanket ban on weekly options is not on the cards. This clarification, made on Friday, sparked renewed interest in the stock, leading to a surge in trading activity.

Market Performance

• BSE shares jumped as much as 4% during intraday trading
• Fresh long position build-up observed with a 2% increase in open interest for BSE stock futures
• The stock decisively surpassed the ₹2,520 resistance level

Recent Performance and Market Sentiment

BSE shares have faced pressure due to uncertainty surrounding SEBI's planned restrictions on the weekly futures and options segment. This uncertainty has impacted the stock's performance:

Technical Analysis and Future Outlook

Analysts have noted the stock's strong performance, breaking through key resistance levels. Some projections suggest potential upside:

• Possible movement to ₹2,750-2,800 levels

However, caution is advised due to several factors:

1. The stock may be in the final stages of its current rally
2. Potential pressure when NSE IPO is announced
3. BSE currently trades at a 30-40% premium to NSE shares in the grey market
4. High valuations warrant careful consideration

Investor Considerations

While the recent surge and SEBI's clarification have boosted market sentiment towards BSE, investors should consider the following:

1. The stock's recent underperformance compared to the broader market
2. Potential impact of the upcoming NSE IPO on BSE's valuation
3. Current high valuations and their sustainability

Investors are advised to monitor further developments in the regulatory landscape and keep an eye on BSE's performance relative to its peers and the broader market before making investment decisions.