Multi Commodity (MCX) | News Based Sentiment Analysis

• On September 17, 2025, news emerged that the Securities and Exchange Board of India (SEBI) is considering allowing banks, insurance companies, pension funds, and Foreign Portfolio Investors (FPIs) to invest in non-agricultural commodity derivative markets, sending MCX shares surging as much as 5% to ₹8,035 on the NSE. This potential influx of institutional investment is a significant positive for MCX, promising increased trading volumes and liquidity.
• MCX demonstrated strong financial performance, reporting a net profit of ₹203 crore for the June 2025 quarter (Q1FY26) – as announced on September 15, 2025 – exceeding the previous high of ₹160 crore from December 2024 by over 25%. This record profit signals effective management and favorable market conditions, bolstering investor confidence.
• Reflecting heightened investor interest, silver futures on MCX reached historic highs on September 12, 2025, with December expiry contracts hitting ₹1,28,612 per kg. This surge directly impacted MCX shares, which increased over 2% to ₹7,730 per share, showcasing the exchange’s sensitivity to commodity price movements.
• MCX’s growing prominence was further underscored by its inclusion in the FTSE All-World Index, effective September 22, 2025. This inclusion is anticipated to attract additional institutional investment and increase demand for the stock, broadening its investor base.
• As of September 19, 2025, MCX’s share price stood at ₹8051.50 with a market capitalization of ₹40984.40 crore, and analysts at Univest rate the stock a “Hold” for the short term and a “Buy” for the long term. This suggests a positive outlook despite a P/E ratio of 73.18 and a P/B ratio of 21.75.
• Foreign Institutional Investors (FIIs) are increasingly utilizing MCX’s commodity derivatives, such as gold futures, to hedge against risks in Indian markets, as highlighted in an analysis on September 18, 2025. This increased demand for hedging instruments boosts trading volumes and reinforces MCX’s role as a key risk management platform.
• Commodity markets on MCX continued to show strength on September 19, 2025, with gold futures climbing ₹572 (0.52%) to ₹1,09,624 per 10 grams, and copper futures rising 0.35% to ₹912 per kilogram. These positive movements in key commodities contribute to overall trading activity and revenue generation for MCX.

The Investment Story: September 2025 was a remarkably positive month for MCX, characterized by strong financial results, increased institutional interest, and favorable regulatory developments. The company is solidifying its position as a leading commodity exchange in India, benefiting from both market momentum and strategic enhancements.

What It Means for Investors: The potential for increased FPI and institutional investment, coupled with record profits and inclusion in the FTSE All-World Index, suggests significant upside potential for MCX shares. While valuation metrics like P/E and P/B ratios are elevated, the long-term “Buy” rating from Univest indicates confidence in the company’s growth trajectory.

Looking Ahead: Investors should closely monitor SEBI’s final decision regarding FPI participation, track trading volumes in key commodities, and observe any further analyst updates. The performance of gold and silver prices will remain a crucial factor influencing MCX’s revenue and profitability.

The Bottom Line: MCX presents a compelling investment opportunity for those seeking exposure to the growing Indian commodities market. The company’s strong fundamentals, positive market sentiment, and strategic initiatives position it for continued success, making it a worthwhile addition to a diversified portfolio.