After 130% Rally, BSE Faces Heat Under Surveillance: Here’s What Changed Today.

📅 June 11, 2025

Source: Moneycontrol, CNBC-TV18, and NSE Filings

Shares of BSE Ltd fell more than 4.4% during the day on Wednesday, the biggest drop in three weeks, after exchanges put the stock under the Additional Surveillance Measure (ASM) framework.

This sudden drop comes after BSE had a nine-session winning streak, during which it rose nearly 130% from its March lows. This was due to excitement in equity derivatives, a lot of trading in the cash market, and speculation about NSE's upcoming IPO.

🧠 What Started ASM?

Exchanges use the ASM framework as a way to stop too much speculation or price manipulation.

Reasons for being included:

Strange price movement

A lot of trading going on

A lot of client activity in one place

Starting right away:

You now need a 100% margin to trade on the BSE.

You can no longer use intraday leverage.

Institutional and retail traders have to deal with stricter risk limits.

📊 Today's Market Snapshot (1:15 PM)

Value of the metric: BSE Price: ₹2,883.10 (🔻 4.07%)

Low for the day: ₹2,871.30

There are 88 lakh shares in volume.

Recent Run-Up: +130% since March

Why It Matters for Investors and Traders

Short-Term View: Traders should be careful. Now that leverage is limited, liquidity may dry up for a while, making things more volatile.

Long-Term View: The fundamentals of BSE are still strong, but its valuation (36x forward P/E) is now being looked at closely.

Exchanges are being careful, not because they think there is fraud or wrongdoing.

Sector Impact: Other stocks linked to the capital market, like MCX and CDSL, also fell by about 3%, which suggests that the mood in the space has changed in the short term.

🧾 Rabbit RA View (In an Educational Setting)

This event is a great example of why you need to manage your risk when you trade on momentum and how rules like ASM can affect price discovery, even for companies that are fundamentally strong.

Traders using Swing Rabbit setups should always think about outside events that could change the balance between risk and reward.

Rabbit RA is a research analyst who is registered with SEBI (INH000010964). This blog is only for learning. There are risks in the market when you invest. Before you invest, please read all of the scheme-related documents carefully.

🔗 For trade ideas that are backed by research and have clear entries, SLs, and targets, go to rabbitresearch.in.