MCX shares tank 15% in trade; here's why investors are dumping the stock

Multi Commodity Exchange (MCX) plummeted 14.9 per cent on the BSE, registering the day’s low at ₹2,146.25 per share. At 9:23 AM, MCX shares were trading 10 per cent lower at ₹2,272.5. In comparison, the BSE Sensex rose 0.01 per cent to 82,276.15. The sharp sell-off occurred ahead of Union Budget 2026, which Finance Minister Nirmala Sitharaman is scheduled to present today.  Kranti Bathini, director of equity strategy at WealthMills Securities, noted that MCX shares are facing pressure primarily due to profit-taking following a sharp rally over the past year. He added that broader weakness in commodity markets is also weighing on the stock's performance.  "Given the kind of rally we witnessed in MCX, one can book some profit from the table at this point of time and buy on dips given the kind of the long term outlook for the stock," said Bathini.  Technically, "MCX is trading below short-term moving averages but is above longerterm horizon indicating a corrective phase within a bullish trend. Despite severe decline, MCX reported stellar Q3FY26 earnings with revenue up 121 per cent, net profit soaring 151 per cent year-on-year (Y-o-Y) with management highlighting for 3-4x volume growth thus positioning them into the expanding derivatives market," said Abhinav Tiwari, research analyst, Bonanza.    In past one year, MCX shares have rallied 101 per cent, as compared to Sensex's fall of 3.4 per cent. 

 

In trade today, gold and silver prices fell sharply. On MCX, around the same time, gold April futures fell 8.76 per cent or ₹13,345 to ₹1,39,000 per 10 gram and silver March futures fell 9 per cent or ₹26,273 to ₹2,65,652 per kg. 

 

Gold and silver prices have been on a downward trajectory since the second half of last week, after hitting a record high. 

 

Market analysts attributed the crash to a combination of factors. The primary trigger was the nomination of Kevin Warsh as the next US Federal Reserve Chair, which has fuelled speculation of a more hawkish monetary policy and higher interest rates. This led to a sharp rebound in the US Dollar Index, making dollar-priced commodities more expensive.  ALSO READ | Gold, silver ETFs plunge up to 19% as precious metals see historic rout 

“A hawkish Fed chair pick under US President Donald Trump sparked global fears of tighter policy, strengthening the dollar and crushing overbought metals. For investors: This dip tests conviction—diversify, avoid panic selling, and eye rebounds from central bank demand. Long-term bulls hold firm,” said Nikunj Saraf, CEO, Choice Wealth. 

 

Technically, “MCX Gold futures have slipped back toward the ₹1,36,000 region, indicating heavy profit booking and long liquidation rather than healthy consolidation,” said Ponmudi R, CEO, Enrich Money. 

 

He added: Although the broader long-term trend was bullish, the recent move clearly reflects distribution at higher levels. Immediate stability is required above ₹1,32,000–₹1,35,000 to avoid further downside extension. Until price regains ₹1,45,000, rallies are likely to face supply, keeping the near-term outlook cautious to corrective.

 

For silver, he said that futures have seen an extreme volatility-driven reversal after posting record highs near ₹4,20,000, followed by a near-vertical collapse toward ₹2,84,000, confirming blow-off top behavior. The ₹2,60,000–₹2,55,000 zone is now a critical demand area; failure to hold may open bigger corrective risk. Any pullback toward ₹3,00,000–₹3,10,000 is expected to attract selling pressure. The trend remains bearish-biased in the short term, with volatility expected to stay elevated.  ALSO READ | Stuck with losses in Gold, Silver ETFs? Here's what investors should do 

That apart, MCX also announced a revision in the limits for bullion commodities accepted as collateral. The company has raised margin requirements on certain commodity futures to better manage risk amid market conditions.

 

For gold, the margin is set as 20 per cent and for silver 25 per cent with upper cap per member set at ₹400 crore, each. 

 

MCX circular further informed that the upper cap for valuation of all commodities, including gold and silver exchange traded funds (ETFs), put together for ITCM/ PCM/ TCM Members will be ₹600 crore, subject to individual commodity-wise upper caps.

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