BSE share price falls 3% - Is it impact of NSE IPO price band announcement? Experts decode
BSE share price today opened at ₹3,280 apiece on the BSE and touched an intraday low of ₹3,193.20 per share during the Friday dealings, logging nearly 3% intraday dip
Stock market today: After snapping a two-day losing streak on Thursday, BSE shares once again came under selling pressure on Friday. BSE share price today opened lower at ₹3,280 apiece and hit an intraday low of ₹3,193.20, losing around 3% during Friday's trading. BSE shares have been under pressure throughout the month, but witnessed some value buying on Thursday.
According to stock market experts, the BSE shares are under pressure due to the NSE IPO. They said that the NSE IPO has been making headlines for the last month, and there have been talks about the ₹30,000 mega IPO entering the Indian primary market. Due to these valuations, the BSE stock became overvalued, triggering selling in BSE shares. However, they maintained that BSE shares may not go below ₹3,100 and predicted a near-term bounce, as the stock is trending sideways to positive on the technical chart pattern.
BSE share price falls | Experts see NSE IPO connect
Connecting the BSE share price fall with the NSE IPO price band announcement, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The BSE shares are falling due to the NSE IPO price band announcement. After the official confirmation of the NSE IPO price band, the NSE IPO size has decreased from ₹30,000 crore to around ₹26,500 crore. After this, the NSE shares are available at a PE multiple of 35, whereas the BSE shares are available at a PE multiple of 49. So, the relative valuation of BSE shares is higher than the NSE shares, and this fall in the BSE shares can be attributed to this.”
Avinash Gorakshkar said the BSE share price may fall further until the BSE's relative valuation comes closer to that of NSE shares.
BSE share price target
However, Sumeet Bagadia, Executive Director at Choice Broking, believes a trend reversal is around, as the stock has strong support at ₹3100. He said that the ₹3100 support for the BSE shares may remain sacrosanct and advised BSE shareholders to hold the stock for the upside target of ₹3450 to ₹3500.
On suggestions to those who want to buy BSE shares, Sumeet Bagadia of Choice Broking said, “Fresh investors can buy BSE shares at the current market price for the near-term target of ₹3500, maintaining a stop loss at ₹3100.”
Bagadia said that BSE shareholders can hold the stock, maintaining a strict stop-loss at ₹3100 per share.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
About the Author
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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