MCX shares up 117% in 1 year: What's behind the stock rally?
MCX Share Price: Multi Commodity Exchange of India Ltd (MCX) posted a net profit of Rs 135.46 crore in the January-March quarter of the 2024-25 fiscal.
Shares of Multi Commodity Exchange of India Ltd (MCX) started today's session on a positive note and opened at Rs 8,349.75 against the previous close of Rs 8215.75 on the BSE. The counter gained further to touch the high of Rs 8,620, a gain of 4.74 per cent from the previous close. This is also the counter's fresh 52-week high. The stock price of India’s leading Commodity Derivatives Exchange has been hitting new highs for four consecutive days. The stock had hit a fresh high of Rs 8357.25 in the last trading session. Thus far in the month of June, it has rallied 22 per cent.
Technically, the stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The counter has given a multibagger return of around 117 per cent in one year, as against a 5.84 per cent rise in the BSE Sensex. Similarly, the counter has given a 32.11 per cent return in one month, which is much higher than the 1.09 per cent gain in the benchmark index.
What’s driving MCX stock price?
New product launches are among various factors behind this steady rally in the stock of Multi Commodity Exchange of India Ltd. Earlier this month, it received approval from the markets regulator Sebi to launch electricity derivatives, which are expected to help power distribution companies and large consumers hedge against price volatility and manage price risks more effectively.
"These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms," Praveena Rai, MD & CEO of MCX, said.
According to experts, continued volatility in key commodity prices like gold and crude oil amid global uncertainties is also supporting the rise in share prices. Sustained growth momentum in retail participation in the options market is also contributing to the momentum.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)