MCX rises 3% in weak market amid heavy spurt in volumes

Shares of Multi Commodity Exchange of India (MCX) experienced a 3 percent gain on September 21, reaching Rs 1,761 per share during intra-day trading. This increase was attributed to reports suggesting the launch of a new trading platform by the end of the month. Additionally, trading volumes more than doubled, indicating a surge in investor interest and activity surrounding MCX shares.

Over 9 lakh shares exchanged hands on both the exchanges, as of 12:20 pm. On a 1-month average, meanwhile, around 4 lakh shares exchanged hands at the bourses.

On a year-to-date basis (YTD), shares of MCX surged 14 percent, as against 10 percent surge in the S&P BSE Sensex. In the past one year, the stock rallied over 37 percent.

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Earlier, on June 23, the exchange had cancelled mock drill for the new trading platform amid a tight deadline of technology transition. 63 Moon Technologies is the software service provider to MCX.

The deal was supposed to end a year ago, but MCX extended it several times to complete its work on an alternative.

According to a report by Motilal Oswal Financial Services, MCX options volumes recovered by 30 percent on a sequential basis in the April-June quarter of fiscal year 2023-24 (Q1FY24), whereas futures’ volumes recovered by 5 percent on a quarter-on-quarter (QoQ) basis.

“We maintain our ‘neutral’ rating on the stock with a revised 1-year target price of Rs 1,400 apiece,” the brokerage firm added in a June report.

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