(MCX) rose 2.5% on Tuesday to hit a fresh all-time high of Rs 8,021.5 on the NSE, following a Bloomberg report suggesting the exchange may roll out electricity derivatives later this year.Earlier this month, MCX confirmed that it had received approval from SEBI to launch electricity derivatives. According to Bloomberg, people familiar with the matter indicated that the new contracts are likely to go live within the year.

In a statement on June 9, MCX Managing Director and CEO Praveena Rai said the move would enable power distribution companies and large electricity consumers to better hedge price risks in an increasingly dynamic energy landscape.

“These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,” Rai said.

She also highlighted the growing importance of such instruments in light of India’s expanding focus on renewable energy and open access power markets, calling electricity derivatives a "vital bridge between the physical and financial sectors."



According to Trendlyne, the average target price for MCX is Rs 6,133, indicating a potential downside of around 23% from current levels. Of the eight analysts tracking the stock, the consensus rating remains 'Buy'.On the technical front, the Relative Strength Index (RSI) stands at 73, suggesting the stock is in overbought territory, which could lead to a short-term pullback. Meanwhile, the MACD is at 372.8, trading above both its centerline and signal line — a bullish indicator.

Also Read: 6 IPOs set to open this week. Check latest GMP trends

MCX shares have rallied 60% in the past three months and delivered nearly 400% returns over the past two years. The company’s market capitalisation now stands at approximately Rs 40,441 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)