MCX shares soar 5% after Sebi chairman’s comments. Here’s what triggered the move

Synopsis

MCX shares rose sharply after Sebi Chairman Tuhin Kanta Pandey signalled plans to let banks, pension funds, and FPIs participate in commodity trading. The move is expected to deepen markets, boost liquidity, and drive higher institutional participation in exchanges like MCX.

Shares of Multi Commodity Exchange of India (MCX) rallied 5% on Wednesday, hitting an intraday high of Rs 8,034.65 on the BSE, after Sebi Chairman Tuhin Kanta Pandey signalled fresh measures to deepen India’s commodity markets.

According to Reuters reports, Sebi Chairman Tuhin Kanta Pandey said that the regulator plans to work with the government to allow banks and pension funds to trade in commodities as part of its broader agenda to deepen the market.

He also mentioned that the market regulator is evaluating a proposal to let Foreign Portfolio Investors (FPIs) participate in non-cash settled, non-agricultural derivatives contracts, which could significantly enhance liquidity.

Reports further indicated that Pandey spoke about setting up a working group on agri and non-agri commodities to address bottlenecks and encourage volume growth.

These measures, once implemented, are likely to provide a major structural push for exchanges like MCX and help attract more institutional participation.

His comments sparked optimism among investors that increased participation from banks, pension funds, and institutional players could drive higher trading volumes and liquidity.

MCX share price performance

Over the past year, shares of MCX have delivered an impressive gain of 41.66%, reflecting strong investor confidence. On a year-to-date (YTD) basis, it is up 27.44%, while the last six months have been particularly robust with a 61.54% surge.

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The three-month performance has been modest, adding 1.08%, but the one-month trend shows a slight decline of 1.71%, indicating some near-term profit-taking after a strong rally.

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