MCX - A Play On Rising Commodity Prices? ICICI Securities
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ICICI Securities Report
We split the change in Multi Commodity Exchange of India Ltd.’s average daily trading volume (ADTV) in terms of price and volume to determine their respective contribution to the overall ADTV.
MCX witnessed a robust ADTV growth since FY17 led by higher commodity prices in four out of five years.
FY21-to-date has seen a similar trend as change in ADTV was driven by higher commodity prices.
As such, MCX does become a play on rising commodity prices.
Lower margin on crude and monetisation of indices are near-term positives.
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