BSE Share Price Reaches Record High Amid Ongoing Rally

Indian Government's Move to Hike Import Duty on Gold and Silver Boosts BSE Shares

The Indian government's decision to increase the basic customs duty on gold and silver imports to 10% from 5%, along with the Agriculture Infrastructure and Development Cess (AIDC) of 5%, has led to a record high for BSE shares. On the NSE, BSE shares jumped almost 4% to reach a record high of ₹4,032.9, crossing the ₹4,000-mark for the first time ever.

This development comes after the government's move, which came into effect on 13 May, aimed at curbing precious metal imports, narrowing the trade deficit, and supporting the rupee. The hike in import duty has resulted in gold June futures on MCX surging 6% and silver July futures vaulting 7%, despite apprehensions that increased import tariffs will hit retail demand. However, the price of gold and silver fell in today's deals due to profit booking.

Exchange-Related Companies Benefit from Higher Market Activity

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The sharp increase in import duties on gold and silver indirectly supported the share price of BSE because higher bullion prices usually lead to a rise in trading activity across financial markets. When the government raises import tariffs, domestic gold and silver prices tend to surge as imported precious metals become more expensive. Such sharp price movements often attract traders and investors looking to benefit from volatility, leading to increased participation in commodity and derivatives markets. Higher market activity generally benefits exchange-related companies because their revenues are closely linked to trading volumes and transaction charges.

BSE Q4 Results: Strong Financial Performance

BSE delivered a strong financial performance for the March quarter of FY26, reporting a consolidated net profit of ₹797 crore, marking a 61% year-on-year increase from ₹494 crore posted in the corresponding quarter last year. The exchange's revenue for Q4FY26 jumped 85% year-on-year to ₹1,564 crore compared with ₹847 crore in the same period of the previous financial year.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Sequentially, net profit rose 32% from ₹602 crore reported in Q3FY26, while revenue increased 26% from ₹1,244 crore recorded in the December quarter. Transaction charges continued to remain the biggest contributor to growth during the quarter, surging 114% year-on-year to ₹1,311 crore.

Brokerage Firm Maintains 'Buy' Recommendation

Brokerage firm Nuvama Institutional Equities maintained its 'Buy' recommendation on BSE with a target price of ₹4,570 per share, indicating a potential upside of around 15% from current levels. According to the brokerage, BSE is likely to face a comparatively lower impact from the reduction in weekly contract volumes because discontinued weekly contracts contribute only 21.3% to its index options premium turnover, significantly lower than the 46.9% contribution for National Stock Exchange of India. Nuvama also highlighted that BSE continues to have substantial scope to expand its derivatives customer base. The exchange currently has around 15 lakh to 20 lakh monthly active derivatives users, compared with nearly 42 lakh monthly users on NSE.