New Delhi, Aug. 19 -- A chaotic start to India's bid to bring closing share-price discovery in line with global standards is hurting BSE Ltd., with some analysts questioning the growth outlook for Asia's oldest exchange operator.

Shares of BSE have fallen more than 9% this month on concerns about the impact of the so-called Closing Auction Session on the exchange. Options turnover and volumes on the bourse have dropped after the new system was introduced on 3 August.

Jefferies Financial Group Inc. cut the stock to underperform this week, the first sell recommendation on the BSE since October, while Nuvama reduced the shares to hold while slashing its price target by 20%. The stock still has buy ratings from more than half of the 18 anal...