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MCX Surges 3% on SEBI's Commodity Market Boost
20 Aug
Summary
- MCX shares surged over 3% amid strong buying interest.
- SEBI reforms aim to deepen India's commodity derivatives market.
- HDFC Securities maintains Buy rating with a target of ₹3,600.
MCX's share price saw a notable increase of more than 3% in early trading on Thursday, recovering from previous losses. This upward trend is largely attributed to recent regulatory actions by the Securities and Exchange Board of India (SEBI), which aim to expand the commodity derivatives market.
SEBI has introduced proposals that could allow foreign portfolio investors (FPIs) greater access to derivatives, including non-agricultural indices and deliverable contracts. These initiatives, combined with eased margin requirements, are expected to address key growth constraints in the market.
Despite a recent 13% decline over three months, MCX has demonstrated strong yearly performance, gaining approximately 84%. HDFC Securities has reiterated its 'Buy' rating, setting a target price of ₹3,600 and anticipating a re-establishment of MCX's historical premium over equity exchanges due to regulatory tailwinds and new product pipelines.
