MCX share price touches 52-week high as board decides to recover technology costs for old platform from MCXCCL | Mint
Active Stocks
Wed Feb 28 2024 15:59:21
  1. Tata Motors share price
  2. 957.75 -0.52%
  1. Tata Steel share price
  2. 140.75 -2.36%
  1. HDFC Bank share price
  2. 1,408.15 -0.87%
  1. Power Grid Corporation Of India share price
  2. 279.55 -4.43%
  1. ITC share price
  2. 408.60 -0.62%
Business News/ Markets / Stock Markets/  MCX share price touches 52-week high as board decides to recover technology costs for old platform from MCXCCL
BackBack

MCX share price touches 52-week high as board decides to recover technology costs for old platform from MCXCCL

MCX share price surges 8% to touch a 52-week high after board decision to recover technology costs for old platform from subsidiary company MCXCCL. MCX share price opens at ₹2,934.95 apiece, touches intraday high of ₹3,168 and intraday low of ₹2,932.

Multi Commodity Exchange of India Limited share price opened at ₹2,934.95 apiece on BSE today.Premium
Multi Commodity Exchange of India Limited share price opened at 2,934.95 apiece on BSE today.

Multi Commodity Exchange of India Limited (MCX) share price surged 8% to touch a 52-week high on Tuesday's session after the MCX board decided to recover technology costs for the old platform from its subsidiary company, Multi Commodity Exchange Clearing Corporation Ltd (MCXCCL).

Multi Commodity Exchange of India Limited share price opened at 2,934.95 apiece on BSE today. Multi Commodity Exchange of India share price touched an intraday high of 3,168 and an intraday low of 2,932. Multi Commodity Exchange stock price, as per trendlyne data, rose 100.16% and outperformed its sector by 75.01% in the past year.

Also Read: Hindustan Petroleum share price gains more than 5%, scales 52 week high. IOCL, BPCL gain up to 4% as crude tumbles

According to Ruchit Jain, Lead Research Analyst at 5paisa, MCX stock has been rallying in an uptrend since September and it has shown a huge outperformance in this period. The momentum continues to be bullish but the readings are now in the overbought zone. Hence, investors with existing positions should continue to ride the trend but new buying should be done either on some price-wise correction or a consolidation phase.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

According to MCX's exchange filing on Saturday, November 25, pending the revised sharing of cost, the board decided to only recover the technology costs for the old platform from MCXCCL until October 15, 2023, on a "pay-for-use basis," by the terms of the current Resource Sharing Agreement. MCX will be responsible for the remaining expenditure, which amounts to approximately 35 crore, on the old platform between October 16, 2023, and December 31, 2023.

Also Read: Netweb Technologies stock soars 10% on partnership with NVIDIA

Furthermore, it is suggested that MCXCCL receive up to Rs. 25 crore in unsecured loans or intercorporate deposits as needed to meet their operational needs. The same will depend on receiving the required regulatory approvals.

“Since the commencement of operations of our subsidiary company, MCXCCL, the technology cost are shared between Parent company-MCX and Subsidiary-MCXCCL. With effect from October 16, 2023, the technology platform has been changed over to a new platform, for which the technology cost sharing are being finalised as per Transfer Pricing Norms, subject to confirmation from the statutory auditors," the company said in its filing. 

Also Read: Adani Power, Adani Ports to Adani Enterprises: Adani shares jump after Adani-Hindenburg case hearing in Supreme Court

MCX reported a net loss of 19.07 crore in the second quarter of fiscal year 2023-24 (Q2FY24), as per the financial results declared on November 8. Contrary to the net loss, the commodity derivatives exchange was profitable in the year-ago and quarter-ago periods. The net profit stood at 63.3 crore in Q2FY23 and at 19.6 crore in Q1FY24.

The company's revenue from operations, however, increased during the quarter under review by 30 percent. It came in at 165.11 crore versus 127.4 crore in the corresponding quarter of the previous fiscal.

Also Read: MCX Q2 results: Net loss at 19 crore, revenue rises 30%

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 28 Nov 2023, 01:11 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App