Shares of Multi-Commodity Exchange of India Ltd have surged over 2 per cent on Friday's noon trade on its entering into a licensing agreement to launch electricity derivatives linked to IEX spot electricity prices on the MCX trading platform.
The deal, however, is subject to regulatory approvals. This should lay the groundwork for a vibrant electricity derivatives market in the country.
The launch of electricity derivatives should provide an effective risk management avenue and help the value chain participants to hedge price risks and protect their revenue margins. With this India shall also join a select group of developed countries which offer electricity derivatives on an exchange platform.
The stock has touched an intraday high of ₹1,171.6 (up 2.57 per cent) before settling down to trade currently at ₹1,701/apiece.
The institutional holdings for this counter are hight at 77.98 per cent. The stock has been able to generate 47.01 per returns during the last year.
Q2 results
It had on Wednesday reported 18 per cent decline in net profit to ₹58.55 crore during the second quarter ended September 30.
The exchange had posted a net profit of ₹71.75 crore during the corresponding quarter last fiscal, MCX said in a statement.
MCX's total income fell 5 per cent to ₹137.52 crore for the September quarter, from ₹144.53 crore a year ago.
The operating income increased by 12 per cent to ₹119.68 crore as against ₹106.58 crore in the same period previous fiscal.
For the half-year ended September 30, its net profit stood at ₹114.98 crore compared to ₹115.45 crore in the year-ago period.
The total income was ₹260.22 crore as against ₹255.37 crore a year ago.