Why are BSE, Groww stocks falling in trade on Friday? Analysts explain

BSE and Billionbrains Garage Ventures Ltd, the parent of Groww, shares came under selling pressure on Friday, even as other capital market stocks traded with moderate gains. Analysts attributed the weakness to capital market regulator Sebi's latest study, which showed a decline in active derivatives traders in FY26 following tightened regulations.

 

BSE shares fell for the second straight session, opening lower at ₹3,252 and touching an intraday low of ₹3,233, down nearly 2 per cent.

 

Meanwhile, Groww shares fell as much as 2.5 per cent, hitting an intraday low of ₹195.60.

 

As of 11 AM, BSE shares were trading 1.3 per cent lower at ₹3,247.50, while Groww shares were down 2.3 per cent at ₹196. In comparison, the Nifty Capital Markets index traded 0.63 per cent higher.  Why are BSE, Groww stocks falling?

 

 

Analysts said that both BSE and Groww are witnessing selling pressure as futures and options (F&O) activity shows signs of moderation. According to data, retail participation in the equity derivatives segment recorded its first annual contraction in a decade, dropping 18 per cent Y-o-Y to 87.5 lakh unique active traders in 2025-26 (FY26). 

 

As per two studies released by Sebi, the trader base shrank to 10.62 million in FY25, marking a sharp reversal of a trend that had been expanding for years.

 

Data showed that small traders having an annual turnover below ₹10,000 fell 37 per cent in FY26. The share of first-time entrants plunged 40 per cent to 20.8 lakh.

 

Nearly 46 lakh traders active in FY25 ceased trading in FY26, further shrinking the trader base.

 

"Equity exchange and brokers are falling due to moderation in futures and options premium turnover. Both average daily futures and average daily options premium turnover have declined over the past few months amid normalisation in market volatility," Sunny Agrawal, head of fundamental research at SBI Securities, said.

 

Kranti Bathini of WealthMills Securities said that BSE has seen downgrades off late and the latest development surrounding the contraction in active derivatives traders is weighing on Groww. He said that Groww is the largest stock broker by active client count and the majority of derivative trades are done through its platform.

 

"So any reduction in derivative volumes is going to have an impact on revenues. Platforms like Groww have a significant dependence on retail participation in the F&O segment, and a moderation in trading activity could directly affect volumes and, consequently, their income," he said. 

Recently, a report by 360 ONE Capital noted that Groww strengthened its market position, gaining 16 basis points sequentially in July to 28.9 per cent. Zerodha and Angel One followed with market shares of 14.9 per cent and 14.6 per cent, respectively. 

 

BSE, Groww: Technical view 

 

Harish Jujarey, AVP, head - technical equity research, Prithvi Finmart, said that BSE has undergone a steep correction over the last three months, falling more than 25 per cent from its all-time high of ₹4,446. The stock has now reached its 200-DMA, placed around ₹3,230, while the long-term trendline support is seen near ₹3,150. 

 

"Historically, BSE has witnessed strong reversals after testing its 200-DMA, and a similar recovery could be possible if the stock manages to hold the ₹3,150 support zone. However, a sustained break below 3,150 could lead to a structural breakdown and further weakness," he said.

 

On Groww, he said that the stock has been consolidating in a sideways range over the past few months. On the technical front, the stock has strong support around ₹180, while resistance is seen near ₹200 and then ₹220. "A sustained break below ₹180 could lead to further correction towards ₹165 and lower levels." 

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