Multi Commodity Exchange of India Ltd shares fell 1.67 percent to trade at Rs 2,767, down Rs 47 from the previous close of Rs 2,814. The stock moved in an intraday range of Rs 2,737 to Rs 2,805 during the session. Over the past year, the counter has moved between a low of Rs 1,460.80 and a high of Rs 3,480. The company’s market capitalisation stood at Rs 705.05 billion, with a price to earnings ratio of 53.06. The stock does not currently offer a dividend yield.
The decline came after MCX recorded another sharp drop in trading volumes on Friday, with premium volumes falling further compared with both Thursday and Wednesday. Analysts have attributed the weakness to the Reserve Bank of India’s new bank guarantee rules, whose impact on trading activity appears significantly larger than initially anticipated.
The effect has been more pronounced on MCX because its clearing corporation, MCXCCL, relies heavily on bank guarantees for margin funding, with such guarantees accounting for around 60 percent of its margin funding compared with peers such as BSE, which have a comparatively lower dependence on the instrument.
Multi Commodity Exchange of India Limited, established in 2003 and headquartered in Mumbai, is India’s largest commodity derivatives exchange, offering futures and options trading in bullion, non ferrous metals, energy and agricultural commodities.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a certified financial advisor before making any investment decisions. Stock market investments are subject to market risks.
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