BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Multi Commodity Exchange of India Ltd.’s Q1 FY22 saw further normalisation in bullion volumes, largely driven by 24%/13% sequential decline in gold/silver volumes.
This was partially offset by a 49% sequential increase in crude volumes on the reversal of the higher margin requirements imposed earlier.
Overall average daily turnover dipped 9.8% q-o-q, leading to 9.7% sequential decline in revenue.
The impact on volumes during the quarter was the result of some normalisation in bullion volumes and the third phase of the implementation of new margin rules (75% of peak margin requirement) from June 01. June volumes fell 10% month-on-month.
However, volume recovery in July (to date) gives us the confidence that the new margin rules would gradually be accommodated by the participants.
MCX management expects the incremental impact on volumes in the fourth phase (100% of peak margins) to be below 4%.
Click on the attachment to read the full report:
DISCLAIMER
This 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 author entity 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.