UBS cuts MCX stock price target to INR7,000, maintains buy

Published 12/05/2025, 06:58
UBS cuts MCX stock price target to INR7,000, maintains buy

On Monday, UBS analyst Lavanya Tottala adjusted the price target for Multi Commodity Exchange of India Ltd (MCX:IN), reducing it to INR 7,000 from the previous INR 7,250, while continuing to endorse the stock with a Buy rating. Tottala noted a significant increase in both Futures and Options daily turnover value in the early part of April, attributing the surge to global uncertainties, including tariffs. Following this period, the average daily value (ADV) for these financial instruments declined but remained above usual levels due to higher volatility and price increases in key commodities, particularly in the Bullion sector, which includes Gold and Silver.

During the first quarter of the fiscal year 2026, the Futures ADV registered around INR 410 billion, a substantial rise from the INR 270-280 billion observed in preceding quarters. Additionally, the Options premium ADV reached approximately INR 43 billion, up from the INR 32-36 billion range seen previously. The analyst suggests that the ongoing volatile market conditions and elevated bullion prices are likely to sustain the Futures ADV at these elevated levels.

Tottala’s outlook for the Multi Commodity Exchange of India remains positive, with expectations of new product launches that could further propel growth in the medium term. The continued Buy rating reflects the analyst’s confidence in the potential of MCX despite the recent adjustment in the price target.

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