MCX soars over 91% in 15 sessions

MCX rose 2.77% at Rs 465.75 at 12:29 IST on BSE, extending recent gains on strong buying support.

Meanwhile, the BSE Sensex was up 170.13 points, or 0.90%, to 19,149.89.

On BSE, 4.26 lakh shares were traded in the counter compared with average volume of 75,000 shares in the past two weeks.

The stock hit a high of Rs 475.85 and a low of Rs 448.80 so far during the day. The stock hit a record low of Rs 238.30 on 19 August 2013. The stock hit a record high of Rs 1,617 on 13 November 2012.

The stock had outperformed the market over the past one month till 5 September 2013, rising 22.92% compared with the Sensex's 1.06% decline. The scrip had, however, underperformed the market in past one quarter, sliding 47.20% as against Sensex's 3.01% fall.

The small-cap company has an equity capital of Rs 51 crore. Face value per share is Rs 10.

Between 31 July 2013, when National Spot Exchange (NSEL) suspended trade following a government order banning illegal contracts, and 16 August 2013, when the crisis deepened, the MCX stock slumped 64.86%.

MCX and NSEL are group companies of Financial Technologies India (FTIL). On 31 July 2013, NSEL announced trading suspension of all one-day forward contracts, except its so-called e-series contracts, after a series of steps taken by the exchange, which is promoted by FTIL and National Agricultural Cooperative Marketing Federation of India, in order to comply with regulatory requirements.

But since 17 August 2013, the MCX stock has surged 91.47% in 15 trading sessions from a record closing low of Rs 243.25 on 16 August 2013, despite problems associated with the FTIL, which holds 26% in MCX.

The rise was possibly triggered by the clarification issued by MCX during trading hours on 16 August 2013, that the company had no exposure to crisis-hit NSEL. MCX and NSEL are totally different entities with no financial commitments or exposure to each other whatsoever, MCX said in a filing with the BSE.

MCX is in full compliance with the directive of the Forward Markets Commission (FMC), the commodity markets regulator, on investments, loans and advances, it said in the filing. That apart, the exchange has effective risk management system and monitoring of warehouses, it added.

MCX is a debt-free company and has a net worth of Rs 1214 crore in the quarter ended 30 June 2013. The market share continues to be above 86% of the total commodity futures trade in the country, the filing added.

MCX's net profit fell 7.14% to Rs 60.11 crore on 3.02% increase in total income to Rs 151.35 crore in Q1 June 2013 over Q1 June 2012.

MCX is a dominant player in commodity exchanges in India.

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