MCX share price jumps over 5% to hit record high on SEBI’s approval for launch of electricity derivatives

Multi Commodity Exchange of India (MCX) shares rose over 5% to reach a record high of ₹7,820 on the BSE after the exchange obtained regulatory clearance to introduce electricity derivatives— marking a first for India and a significant milestone in the advancement of its energy trading scene.

The company indicated in a filing that the electricity derivatives contracts being launched by MCX will provide generators, distribution firms, and major consumers with the ability to protect against price fluctuations and manage price risks more efficiently, ultimately improving the effectiveness of the power market.

This groundbreaking initiative establishes MCX as a leader in innovation within commodity trading, while supporting India's goal of promoting sustainable energy and advancing capital market development. It also represents a crucial advancement toward enhancing India's energy markets and is in line with the wider vision of 'Viksit Bharat.'

“The introduction of electricity derivatives marks a pivotal development in India’s commodities ecosystem. These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms.

With India’s growing focus on renewable energy and open access power markets, electricity derivatives can serve as a vital bridge between the physical and financial sectors," said Praveena Rai, MD & CEO, MCX.

Q4 Results

MCX experienced a 54.15% increase in consolidated net profit, reaching ₹135.46 crore in the fourth quarter of the 2024-25 fiscal year, driven by higher income. The company's net profit was ₹87.87 crore in the same quarter a year earlier, according to a regulatory filing.

Total income surged by 60.68% to ₹320.49 crore in the March quarter of 2024-25, compared to ₹199.45 crore a year prior. Expenses increased to ₹152.96 crore, up from ₹92.96 crore in that period.

For the entire 2024-25 fiscal year, the company reported a more than six-fold increase in consolidated net profit, amounting to ₹560.04 crore, compared to ₹83.11 crore the previous year. The board has proposed a final dividend of ₹30 per equity share for the 2024-25 fiscal year.

Technical Views

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, MCX share price has witnessed a vertical move in the June month and has seen a gain of over 18%, bias remain positive as prices continue to soar in uncharted territory. MCX share price can extend towards ₹8,250 with dips should be taken as buying opportunity, ₹7,450 seen as support.

Further, Anshul Jain, Head of Research at Lakshmishree Investments explained that MCX share price, after pulling back to its weekly moving averages, has delivered a strong 3-week rally, hitting fresh all-time highs around ₹7,800.

The stock now appears extended in the short term. Traders holding positions should trail stops below ₹7,650 on a closing basis to protect gains. For fresh entries, a prolonged consolidation or a healthy pullback will be ideal to re-enter the stock, ensuring better risk-reward in the next bullish leg.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.