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Informist, Tuesday, Aug. 4, 2026

--BSE: Saw notable improvement in primary market activity in Jul
--CONTEXT: Comments made by BSE mgmt in post-earnings analyst call
--BSE: Created 16 new indices, see good demand for them
--BSE: Have got approval for two derivative indices
--BSE: Confident of co's market share in cash mkt rising hereon
 

Adhithya Aji and Anand JC

MUMBAI – Stock exchange platform BSE Ltd. expects its market share to hit a "very meaningful" double-digit mark in the cash market at the turn of 2027, Sundararaman Ramamurthy, managing director and chief executive officer said in a post-earnings analysts conference call. In 2025, its peer National Stock Exchange handled around 85–90% of cash equities volume, according to Ventura Securities.

The stock exchange said with more initial public offerings in the pipeline, its market share in the cash segment will get a boost. Increasing market share in the cash segment remains a key aspiration, Ramamurthy said.

Markets faced excessive volatility following the US' attacks on Iran, which began late February. This led to a sharp rise in equity outflows. However, Ramamurthy said things were improving now. "July 2026 marked a notable improvement in primary market activity with 13 main board IPOs collectively raising approximately INR 18,348 crores (INR 183.48 billion), reflecting improving investor sentiment and renewed issuer confidence," he said. Going ahead, the main board IPO remains strong with around 250 companies seeking access to the equity market with an aim to raise around INR 1.75 trillion.

When asked about the impact of the Reserve Bank of India's circular and securities transaction tax hike on derivatives, Ramamurthy said there was a significant impact of the move on futures and some on options across the market. However, for BSE, the impact wasn't as severe as futures is not a heavily traded product on the exchange. Yet, it will remain watchful of the impact in the coming months, he said.

From Apr. 1, the Reserve Bank of India tightened the lending norms for banks for capital market intermediaries. During the 2026-27 (Apr-Jun) Union Budget, Finance Minister Nirmala Sitharaman raised the securities transaction tax on futures transactions to 0.05% from 0.02% and that on options premium and exercise of options to 0.15% each from 0.1% and 0.125%, respectively. The new tax rates came into effect from Apr. 1.

In the colocation business, the top management said it achieved the mark of 500 racks in the exchange. "When we are giving these racks over a period of time in phases, what happens is the offtake of the number of racks is also gradual and upward movement," Ramamurthy said. He added that whether to increase the number of racks will be reconsidered at appropriate time and stages. During the June quarter, the company's revenue from co-location business was at INR 510 million. 

On the upcoming product pipeline, the management of the stock exchange said it is focusing on both corporate bond side and indices. BSE launched 16 new indices and saw healthy demand for them. On the derivatives segment, it received approval for two more indices. "At this point of time, we are working on the focused IT index. Once we become very successful, we will consider other products," Ramamurthy said. The exchange is also planning to push electronic gold reserves instead of physical gold. "...it is a movement away from physical gold and make more towards assets which mimic gold and could be good for the economy," the top official said. 

For the June quarter, BSE reported a net profit of INR 8.74 billion, up nearly 10% on quarter and 62% on year. This was higher than the Street's estimate of INR 8.46 billion. The top line of the stock exchange rose marginally on quarter and over 63% on year to INR 15.66 billion. The revenue failed to surpass analysts' estimate of INR 15.94 billion. 

BSE released its June quarter earnings post market hours. On Tuesday, its shares closed over 1% higher at INR 3,618 apiece on the National Stock Exchange.  End   

Edited by Deepshikha Bhardwaj

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