BSE shares witnessed a remarkable surge of 17% on March 28 after the National Stock Exchange (NSE) decided to delay its plan to change the weekly, monthly, and quarterly derivatives expiry day from Thursday to Monday. The decision follows a consultation paper released by the Securities and Exchange Board of India (SEBI), which proposed limiting expiry days to either Tuesday or Thursday for optimal spacing.

According to sources, SEBI instructed exchanges to maintain the existing expiry schedule until further notice, prompting NSE to put its plans on hold. This move brings relief to BSE, as concerns about potential market share loss and reduced trading volumes had surfaced earlier when NSE announced the switch to Monday expiries.

Market experts, including brokerage firm Jefferies, view the delay positively, as it reduces the risk of BSE losing its market share. They believe that the impact on BSE’s earnings per share (EPS) will be limited, estimated at around 12%. The temporary relief also helped BSE shares rebound, recovering from the recent dip.

Nuvama, another brokerage firm, previously noted that NSE's plan to move expiry days to Monday could have constrained trading options for retail investors, leading to lower overall volumes in the market. However, with SEBI's intervention, the status quo remains for now.

Jefferies continues to hold a 'hold' rating for BSE shares, setting a target price of Rs 5,250, reflecting a potential 12% upside amid reduced regulatory risks and improved market conditions.