MCX hits 10-month high on heavy volumes

The stock rallied 9% to Rs 1,047, its highest level since August 2015 on the BSE.

Multi Commodity Exchange of India (MCX) has rallied 9% to Rs 1,047, its highest level since August 2015 on the BSE, on the back of heavy volumes.

Trading volumes in the counter jumped nearly three-folds with a combined 437,195 equity shares changed hands on the NSE and BSE till 11:46 AM.

Since May 23, 2016, the stock has outperformed the market by gaining 22% after the Reserve Bank of India (RBI) has allowed overseas investors to buy equity shares in MCX after foreign shareholding in the bourse fell below the prescribed threshold caution limit. The S&P BSE Sensex was up 4% during the same period.

The RBI on May 20, 2016 notified that the aggregate share holdings in M/s Multi Commodity Exchange of India Limited by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.