Is MCX Set to Reach Rs 10,000 as Gold and Silver Contracts Propel Growth?
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Synopsis
In a recent report, the Multi Commodity Exchange of India (MCX) is expected to reach Rs 10,000, driven by a surge in bullion contracts, innovative products, and technology upgrades. Analysts predict substantial growth in options premiums for gold and silver, making it an exciting time for investors. Stay informed about this potential opportunity!
Key Takeaways
- MCX reports strong growth driven by bullion contracts.
- Target price set at Rs 10,000 by HDFC Securities.
- Gold and silver expected to significantly contribute to options premiums.
- MCX to achieve substantial revenue growth from FY25 to FY28.
- Innovative product launches will enhance market participation.
New Delhi, Oct 13 (NationPress) The Multi Commodity Exchange of India (MCX) is showcasing remarkable growth, driven by a significant rise in bullion contracts, a solid product pipeline, and technological advancements, according to a report released on Monday.
Analysts from HDFC Securities have raised their revenue and EPS projections for MCX by 7% to 9%, continuing their 'Buy' recommendation and establishing a target price of Rs 10,000.
Precious metals including gold and silver are anticipated to play a crucial role in boosting options premiums, with this trend gaining momentum, as highlighted in the HDFC Securities report.
The imminent launch of cash-settled index contracts like Metldex and Bulldex is projected to provide a growth boost and draw increased participation from foreign portfolio investors (FPIs) and institutions.
The average daily turnover (ADTV) for options premiums surged to approximately Rs 67 billion in October 2025, a significant increase from Rs 41 billion in Q2 FY25, spurred by heightened volumes in gold and silver. Bullion now accounts for nearly 60% of the total notional volume and 30% of premium ADTV, up from 20% and 8% respectively a year ago, according to the report.
The exchange recently revamped its gold and silver options, introducing monthly expirations and smaller contract sizes, resulting in a remarkable 7-fold increase in gold ADTV and a stunning 37-fold jump in silver ADTV year-over-year in September.
HDFC Securities anticipates that bullion could represent 40% of total premiums by Q4FY27E, significantly decreasing previous concentration risks associated with crude and natural gas contracts, which previously held an 85% share.
MCX is projected to achieve a revenue and PAT CAGR of 27% and 33% respectively from FY25 to FY28, as per the report. The brokerage firm noted a soft outlook for Q2 FY26, but highlighted that the exchange is well-positioned for sustained growth in options and a positive medium-term earnings trajectory.
Point of View
I believe the recent growth in MCX, fueled by bullish trends in precious metals, is indicative of a strategic shift in the commodity trading landscape. The focus on innovation and increased participation from institutional investors positions MCX as a vital player in the financial market.
NationPress
13/10/2025
Frequently Asked Questions
What is driving the growth of MCX?
The growth of MCX is primarily driven by a surge in bullion contracts, a robust product pipeline, and technological advancements.
What is the target price set by analysts for MCX?
Analysts at HDFC Securities have set a target price of Rs 10,000 for MCX.
What percentage of total premium could bullion reach by Q4FY27E?
Bullion is expected to account for 40% of total premium by Q4FY27E.
How has the ADTV for gold and silver changed recently?
In September, gold ADTV increased sevenfold, while silver ADTV surged thirty-sevenfold year-over-year.
What are the upcoming products from MCX?
MCX is set to launch cash-settled index contracts such as Metldex and Bulldex, which are expected to attract higher participation.
