BSE and MCX Reach New Heights Amid Q4 Earnings Anticipation
BSE, MCX at new highs ahead of Q4 results; analysts predict up to 22% rally
Business Standard
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Shares of the Bombay Stock Exchange (BSE) and Multi Commodity Exchange (MCX) have hit new lifetime highs, with BSE rising 29% and MCX 21% in April. Analysts predict strong Q4 earnings, forecasting up to 37% growth in profit after tax for MCX, driven by increased options trading.
- 01BSE shares surged 29% and MCX shares increased 21% in April.
- 02Analysts expect MCX's profit after tax to grow by 37% due to a rise in options trading.
- 03Total revenue for MCX is projected at ₹887 crore for Q4, up 33.3% QoQ.
- 04BSE's total revenue is expected to reach ₹1,574 crore, a 26.5% increase QoQ.
- 05Analysts predict further upside potential of 22% for BSE and 10.6% for MCX.
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The Bombay Stock Exchange (BSE) and Multi Commodity Exchange (MCX) have experienced significant rallies in April, with BSE shares climbing 29% and MCX shares increasing 21%. Analysts from HDFC Securities anticipate strong Q4 earnings, projecting MCX's profit after tax to grow by 37% due to a surge in options trading, particularly in energy contracts. They estimate that MCX's total revenue will reach ₹887 crore for the quarter, reflecting a 33.3% increase quarter-on-quarter (QoQ). BSE is also expected to perform well, with total revenue projected at ₹1,574 crore, marking a 26.5% increase QoQ. Both exchanges are benefiting from improved margins and lower clearing costs. HDFC Securities has issued a 'Buy' rating for MCX with a target price of ₹3,230, and an 'Add' rating for BSE with a target price of ₹3,800. Market strategist Anand James from Geojit Investments shares a bullish outlook, predicting BSE could rally another 22% to reach ₹4,200, while MCX may test levels around ₹3,100.
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The strong performance of BSE and MCX could influence investor confidence and market dynamics, potentially leading to increased trading activity and investment opportunities.
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