Stock markets are full of surprises. And this is revealed in full colour in this report as well.
Let’s start with what’s happening in the markets.
All the global markets are under pressure due to the escalating conflict in the Middle East. Nifty 50 and BSE Sensex are down by over 8% over a month.
Even the Nifty Commodities Index is down by 7.7% over a month.
1-month Nifty Commodities Index Chart
Having said that, during January and February, mutual funds bought into one specific stock aggressively. In fact, so aggressive was the buying that they increased their holdings by 27.7% during this period.
The stock? Multi-Commodity Exchange Limited (MCX Ltd.).
Among the big buyers of this stock were Motilal Oswal Midcap Regular Growth Fund, which bought 2,400,000 shares and 2,909,458 shares in January and February, respectively.
This fund has 3.85% of its assets under management (AUM) invested in this stock.Then there is ICICI Pru Balanced Advantage Growth Fund, which bought around 1,000,000 shares and 2,00,000 shares respectively in January and February.
During February, Motilal Oswal Flexicap Regular Growth Fund also invested 3.08% of its AUM for buying around 1,622,804 shares of MCX.
SBI also invested around 1.52% of the AUM of the SBI Flexicap Regular Growth fund in this commodity exchange stock.
So, what made these mutual funds buy this commodity exchange stock so aggressively amidst all the ongoing turmoil?
Let’s find out.
MCX: Largest Commodity Exchange in India
MCX is the leading exchange in India for commodity trading. It started its operations in 2003, and now it is the largest commodity exchange in the country with a market share of 99% across base metals, bullion, and energy.
The continuous growth of the Indian commodities derivatives market, especially option-led growth, is fuelling the growth of MCX. At the end of FY23, the value of the Indian commodity market stood at ₹151 trillion, which grew to ₹958 trillion at the end of December 2025, logging a massive 534% absolute growth.
However, this growth is primarily driven by commodity options, whose value grew from ₹88 trillion to ₹850 trillion during the above-mentioned period, logging a whopping 866% growth.
2.3x Growth in Average Daily Turnover
During the 9 months ended on 31 December 2025, commodity options average daily turnover (ADT) (notional) grew by 2.3x to ₹4,34,797 crore from ₹1,91,909 crore in FY25. The option premium ADT grew by 1.6x from ₹3,131 crore to ₹5,143 crore during this period.
This growth is mainly driven by a surge in trading of bullion and energy. Usually, when markets are volatile, gold and silver perform well as a safety net for investors.
During Q3FY26, 78% of the commodity futures turnover was from gold and silver trading, of which gold had a share of 44.8% and silver had 33.8%.
During 9MFY26, commodity Futures ADT rose to ₹55,469 crore, which is a 2x increase from ₹27,153 crore of FY25.
New Launches Driving Business Growth
FY26 has been a year of new launches so far. During July 2025, the commodity exchange introduced India’s first-ever Electricity Futures Contract. Then, during August 2025, the company launched its Nickel Futures Contract, which has differential trading and delivery units. During October 2025, the company also launched options on MCX BUILDEX®.
Apart from these, during the period, MCX also introduced monthly gold and silver options on bimonthly underlying futures, and Cardamom, which is a 10-gram Gold Futures Contract.
Navigating Market Watchdog
SEBI, the market regulator, has been quite strict about derivatives trading in India to safeguard the investors’ interests. SEBI has introduced different guidelines from time to time, such as stricter eligibility criteria for trading in the derivatives segment, a real-time performance monitoring framework for commodity derivatives, revised criteria for commodity futures and options, and more.
Even amidst all these rigidities, MCX has been witnessing massive turnover, which is also growing continuously. This is perhaps what is driving the mutual funds to invest in this commodity exchange so aggressively during the past months.
Financials, Returns, and Dividends
During 9MFY26, the total income of MCX increased by 69% YoY to ₹1,504 crore from ₹888 crore recorded during the corresponding period last fiscal.
The profit after tax (PAT) increased by a whopping 89% during the period from ₹425 crore to ₹802 crore.
Earnings per share (EPS) jumped almost 2x to ₹31.45 per share from ₹16.65 per share.
Coming to the returns, return on equity (ROE) is at 34.3%, a bit lower than the industry median of 36%.
About dividends, MCX has been paying dividends regularly, and its current dividend yield is around 0.25%, which is at par with the industry median.
Valuation
The stock is trading at a price/earnings (PE) of 65.3x, which is higher than the industry median of 50.3x. Even the price-to-book value (PBV) ratio is at 29.3x, higher than the industry median of 21.2x, indicating a premium valuation.
1-Year Share Price Chart of MCX Ltd.
Final Thoughts
While volatile market conditions usually weigh heavily on the markets, MCX has been an outlier. Gold and silver bullion trading has skyrocketed, keeping this commodity exchange growing significantly amidst all the volatility, and mutual fund houses are probably buying this stock aggressively for the same reason.
Having said that, the recent changes in the STT on derivatives and other stringent guidelines of SEBI may affect the business of the commodity exchange. However, that time could only tell, and for that, you need to add this stock to your watchlist to keep an eye on its future performance.
We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Maumita Mitra is a seasoned writer specializing in demystifying the world of investment for a broad audience. She has a keen eye for detail and a knack for explaining complex financial concepts in the simplest manner possible.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article.
The website managers, their employees (s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.
