ValuePickr Forum

BSE (Bombay Stock Exchange)- Bet on Financialization?

(Ampi) #360

Considering this to be true any one aware any major AMC stopped using BSE star MF ?

(Akbar Khan) #361

Saw a new feature on icicidirect called eATM when selling shares. The feature allows you to get the cash immediately (with small amount retained till settlement) instead of T+2. This means that someone selling gets better liquidity. Now… I was surprised to see that this feature is only for BSE trades. Would this entail moving of some trades from NSE to BSE? I don’t think it could take long for NSE to catch up and offer same benefits, unless there has been some understanding with BSE to restrict.

(Dinesh Sairam) #362

I noticed it too. But ICICIDirect, not BSE, has launched eATM:

It’s just that they have started experimenting with 600 stocks in BSE. Seeing as how they are a brokerage, it is almost inevitable that they will expand this for more stocks in both BSE and NSE too. I don’t think BSE gets any long term or even medium term gain out of this.

1 Like
(Shailesh) #363

I don’t think this is true …

Pl go through following …

(phreak) #364

This product has been around on HDFC Sec for a few months now. Its called ENCASH and its available only on BSE scrips in the CNX 200 index.

https://www.hdfcsec.com/Products/FAQ/933

1 Like
(rajanprabu) #365

Hello to all,

This is my first post to VP, so please forgive me for any mistakes and errors. I have been following BSE for a quite a while. I got attracted due to the everlasting business in nature and a decent Div. Yield. People always speak about NSE and saying that BSE will always be secondary. So I decided to do some data mining of the new initiatives. I chose only two segments, but if VP members are interested in others, we can have a look later.

1) BSE commodity derivative(CD) segment

I have pulled everyday data from BSE and NSE from 16th Oct 2018 ( From that day both NSE/BSE started trading CD, though BSE started from 1st Oct). In BSE CD reached a peak of 600 Cr and then fell back to 250 Cr avg.

As you can clearly see that BSE’s turnover is comfortably above NSE. Though the values are not high, BSE is a clear winner. Hopefully more and more products listed, we could see it go higher. At present market sentiments are not favourable, so that will also boost the turnover during bull market.

PS:
I have pulled the data from the bourses automatically and did the calculation with my own scripts. There could be some errors. If you find some Im happy to stand corrected.

Disclosure:
I have a sizeable holding in BSE and my views are biased. Please do your own due diligence before buying a stock.

11 Likes
(rajanprabu) #366

2) Performance of BSE INX vs NSE International Exchange

a) Turnover wise

A clear divergence can be seen starting from Feb. INX is supposed to be the fastest Exchange in the work with just 4 microsecond per order. The daily average turnover come about 1.5 Bill USD ( though not enough data to establish if this is the real day average, but true for whole March). So far INX came out as a clear winner, though we need to wait and see how things are developing in the future.

8 Likes
(rajanprabu) #367

b) Contract wise

Other factor is the number of contracts per day. As for as I remember Mr. Chauhan told on a Con call that they were planning to charge 0.2 $ per contract. So I had a look at this as well.

INX average contact volume is about 100,000. Just for the sake of argument, if BSE decides to monetise this operations, it could generate revenue of about 100,000 x 0.2 $ = 20k USD per day. Its not a big sum, but given that things are looking good, we can hope that it will get better with time.

Im sorry I had to do this in three posts, as Im a new user, I can attach only one image per message.

PS:
I have pulled the data from the bourses automatically and did the calculation with my own scripts. There could be some errors. If you find some Im happy to stand corrected.

Disclosure:
I have a sizeable holding in BSE and my views are biased. Please do your own due diligence before buying a stock.

12 Likes
(Arun S G) #368

Thank you @rajanprabu for comparing this data, very useful. I think we need to go to the next layer of this data. What you have presented clearly shows a bigger business of one exchange over the other, but the reason why this is so is not clear and it would answer the question as to what prevents NSE from getting higher contract volumes too. Is is just the speed of the network servers that BSE employs today, in which case it is a highly temporary advantage.

On a more general note, the country will always need more than one exchange for regulatory purposes, and so BSE would always survive, but will it thrive or just survive is the question we investors need to find answer for !

Disc: Invested

2 Likes
(rajanprabu) #369

Thank you @arunsg. If you look at NSE IFSC website, even the top menu like About Us, Products, Listings, membership etc is not working ( I checked in two browsers Safari and Firefox). But BSE INX website is fully equipped and active. Also I think different products are listed ( for example India 50 is only in INX). But if the pact between NSE and SGX Singapore goes through NSE IFSC will get lots of traction. SGX Nifty is a very popular product in SGX. It could increase the volume, but NSE IFSC might have to share the profits with SGX.

As of now the liquidity is low which could be a potential reasons which keep the international investors away. Also its very difficult to understand why investors prefer one exchange over the other like in the case NSE/BSE.

(Shailesh) #370

It is better to compare Commodity derivative volumes with MCX rather than NSE .

(rajanprabu) #371

BSE only have the following derivatives listed below… MCX has nearly all metals and huge other commodities listed. So comparing BSE and MCX straightaway is just not correct. One has to dig out the ones that are traded on both BSE/MCX and compare them.

  • [Oman Crude Oil Futures]
  • [GOLD Futures]
  • [SILVER Futures]
  • [Copper Futures]
  • [GuarGum Futures]
  • [GuarSeed_Futures]
  • [Gold Mini Futures]
  • [Cotton Futures]

From the investor presentation of BSE, they claim that they already have 90 % market share ( If I understand it correct).

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(Ankur Vohra) #372

They claim 90% share among universal exchanges i.e. among NSE and BSE. They haven’t included MCX for calculating this 90% share.

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(Ramasamy Babu) #373
(rajanprabu) #374

BSE INX Turnover crossed 2 Billion dollar again today ( Market is still open)… I really hope that it sustains at this level… Today volumes so far is 1,58,849.

Assuming avg. daily volume is 150 000 ( lets hope it sustainable). If they monetise using 0.2 $ per contract ( SG charges 0.35 $ per contract).

150 000 x 0.2 $ = 30,000 USD = 21 L per day… on Avg. 60 days per quarter ( INX has less holidays than BSE). Thats 12.6 Cr topline ( but I guess expenses side is already included). This might just get to add to bottomline.

2 Likes
(rajanprabu) #375

BSE on right steps towards attracting FPIs. BTW… today the turnover is INX so far is 2.5 Billion dollars ( Higher ever achieved by INX) and total contracts so far is 2,02,863. INX is open till 11 PM. IFSC NSE has 1.2 Billion turnover today for the same time period.

(JPT) #376
3 Likes
(Rezang La) #377
  1. Final dividend of Rs. 25/= per share
  2. Buyback amounting to Rs. 460 Cr., at Rs. 680/= per share
1 Like
#378

Q4FY19 results:
PAT down 16.46% (was 62.08 Cr, now 51.86 Cr)
Revenue down 182.08 Cr, was 195.34 Cr
Consolidated net profit 199.28 Cr
Expenditure increased to 130.66 Cr from 123.61 Cr
Final dividend of 25, Record date: June 28

1 Like
(Raghu) #379

As per the BSE buyback , they are going with tender buy back option (not a open market purchase)
Can somebody please explain, is this a online seemless process ? I have never participated in one before.
Or this involves any physical submission (or posting through snailmail)
please guide.