MCX to launch gold options in September

India Infoline News Service | Mumbai | August 13, 2017 09:24 IST

Multi-commodity Exchange (MCX) will launch the country's first gold options contract in September providing even smaller players in the bullion industry with an instrument to hedge their risk, reported a national news daily.

Multi-commodity Exchange (MCX) will launch the country's first gold options contract in September providing even smaller players in the bullion industry with an instrument to hedge their risk, reported a national news daily. The Securities and Exchange Board of India of India (SEBI) has approved the options contract.
 
This will give many small jewellers an opportunity to hedge their risk without worrying about daily volatility.
 
India is the world's second-biggest buyer of gold, typically importing around 800 tonnes a year. In June, markets regulator allowed hedge funds registered as category III Alternative Investment Funds (AIFs) to invest in commodity derivatives as clients, opening the market to institutional investors for the first time.
 
Gold options and entry of hedge funds will increase the exchange's turnover in the next fiscal year, as per company’s management.
 
On the financial front, MCX's total income dropped 7.1% from a year ago to Rs 87.24 crore in Q1FY18 on YoY basis.

Stock View:

Multi Commodity Exchange of India Ltd ended at Rs 1041.05, down by Rs 6.05 or 0.58% from its previous closing of Rs 1047.1 on the BSE.

The scrip opened at Rs 1025.1 and touched a high and low of Rs 1049 and Rs 1002.55 respectively. A total of 312302(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 5309.36 crore.

The BSE group 'A' stock of face value Rs 10 touched a 52 week high of Rs 1420 on 03-Oct-2016 and a 52 week low of Rs 924.5 on 12-Sep-2016. Last one week high and low of the scrip stood at Rs 1130.2 and Rs 1002.55 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 61.31 % and 38.42 % respectively.

The stock traded below its 200 DMA.

***Note: This is a NSE Chart

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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