HDFC Securities Boosts MCX Outlook with Regulatory Easing
· Business · Economic Times
HDFC Securities kept its Buy rating on MCX and set a target price of ₹3,600, implying an 18.42% upside from the ₹3,040 close on 18 August 2026. The brokerage said that easing of commodity‑derivatives regulations could widen MCX’s participant base, broaden product offerings and lower margin requirements. The firm expected that allowing foreign portfolio investors in non‑agricultural index derivatives and physically deliverable contracts such as gold, silver, and base metals, along with new bullion and metals index options, could push options premiums up 20‑25%. Currently, foreign portfolio investors account for only about 3% of MCX volumes, compared with 16% at equity exchanges, so an increase in FPI activity is seen as a key growth driver. SEBI has also proposed a compulsory square‑off or rollover window from T‑3, with residual positions transferred at the T‑1 closing price, a change that could influence traders’ position management.
Why it matters
The potential rise in options premiums and volume could lift MCX’s earnings and help commodity derivatives capture a larger share of India’s trading activity, benefiting investors, traders and commodity producers.
Read the original report — Economic Times
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