Shares of Multi Commodity Exchange (MCX) gained nearly 4 per cent in intraday trade to touch ₹2,889 on the NSE on Tuesday, driven by heavy trading volumes. According to reports from Business Standard, the rise came even as benchmark indices traded in the red, with Sensex and Nifty 50 both down around 0.5 per cent at 1:45 PM. At last check, the stock was trading at ₹2,872, up 3 per cent from its previous close of ₹2,782.10.
Gold and silver prices advanced significantly in futures trade on Tuesday, supported by fresh buying from traders amid firm domestic demand and positive global cues. On the Multi Commodity Exchange (MCX), gold contracts for August delivery rose by ₹1,303, or 0.93 per cent, to ₹1,41,612 per 10 grams, with the contract recording a business turnover of 1,095 lots. In the international market, gold futures climbed 0.70 per cent to USD 4,030.57 per ounce in New York. Silver also witnessed strong buying interest, with the July delivery contract on MCX gaining ₹2,946, or 1.35 per cent, to ₹2,20,664 per kilogram, with a business turnover of 1,422 lots. According to analysts, fresh positions by traders and a firm global trend supported the rally in both precious metals.
The gains were accompanied by strong trading activity, with 2.4 million shares changing hands on the NSE, compared with the previous session's total traded volume of 1.21 million shares. As reported by Business Standard, over the past one year, the share price of the commodity exchange has soared 75.6 per cent, significantly outperforming the benchmark Nifty 50 which has declined 3.8 per cent during the same period. Market expert Ambareesh Baliga noted that the stock is "bouncing back" after witnessing corrections in the past couple of weeks.
According to market expert Ambareesh Baliga, he is against any fresh buying at current levels as there are no major positive triggers. As reported by Business Standard, he explained that "softer commodity prices, especially in precious metals, are supporting the stock" and the correction has made valuations attractive to investors, prompting value buying. However, he cautioned that investors may consider avoiding the stock at current prices and noted that once the National Stock Exchange (NSE) gets listed, some investor interest could shift from MCX and Bombay Stock Exchange (BSE) to the NSE.
