MCX shares rise 2% as JPMorgan upgrades, raises target price after this Sebi proposal
Shares of Multi Commodity Exchange (MCX) rose more than 2% after Sebi proposed widening foreign portfolio investors’ access to physically settled non-agricultural commodity derivatives. JPMorgan upgraded MCX to ‘Overweight ’, and Jefferies retained a ‘Buy’ rating, citing the potential for higher trading volumes and earnings.
Shares of the Multi Commodity Exchange (MCX) surged more than 2% on Wednesday following upgrades from international brokerages and a proposal from market regulator Sebi to allow foreign portfolio investors (FPIs) to participate in non-agricultural commodity derivative contracts. Sebi's consultation paper, released on Tuesday, aimed to expand FPI involvement in commodity derivatives, expanding the potential for integration with international commodity markets.
JPMorgan upgraded its rating on MCX shares to 'Overweight' and raised the target price to Rs 3,500, indicating a 21% upside potential. Jefferies also gave a 'Buy' call with a target price of Rs 3,600, suggesting more than 24% upside potential. Morgan Stanley noted that FPIs currently contribute around 4% to total notional turnover, with the prospect of higher participation in cash-settled contracts potentially boosting MCX's market performance.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
