ICICI Securities: MCX - Awaiting Traction In New Product, Channel Mix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We highlight the traction for Multi Commodity Exchange of India Ltd. in the new product/distribution mix.The bullion index was launched in the last week of August and volumes declined from Rs 5 billion on the first day (August 24, 2020) to Rs 2.3 billion on the fifth day (August 31, 2020).The option volumes remain muted at Rs 14 billion average daily turnover (ADTO) for August 2020.Currently institutional participation remains tepid despite inherent potential. As such, the traction in core future ADTO remains the singular earnings driver for the company.ADTO has moved from Rs 324 billion in FY20 to Rs 433 billion in August 2020 driven by up Rs 54 billion movement in gold (split 35/65% between volume/price), up Rs 132 billion movement in Silver (split between 50/50% between volume/price) offset by Rs (down)106 billion in crude (split between 95/5% between volume/price).Without the sustainable traction in new product/channel mix, the arithmetic of ADTO will continue to be the only investment thesis.However, expected volatility in a Covid-19 impacted macro environment and gradual decrease in margins in crude trading can sustain higher volumes..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: MCX - Awaiting Traction In New Product, Channel Mix

ICICI Securities: MCX - Awaiting Traction In New Product, Channel Mix

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