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.
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.
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.