Turnover Surge
Amid volatility in fincl markets due to US tariffs, MCX's turnover jumps 90%
This story was originally published at 18:13 IST on 8 April 2025
Register to read our real-time news.Informist, Tuesday, Apr. 8, 2025
By Sandeep Sinha
MUMBAI – At a time when global financial markets are facing extreme volatility due to the reciprocal tariffs announced by US President Donald Trump on its trade partners, the Multi Commodity Exchange of India has seen a surge in its turnover. MCX's daily turnover from Thursday to Monday averaged INR 4.01 trillion, up 90% over the prior 10 sessions, according to exchange data.
The maximum rise was seen in crude oil futures and options, with the daily average turnover surging 249% to INR 2.21 trillion compared with INR 632.97 billion for the 10 days before Apr. 3. The second-highest jump in turnover was in silver futures and options, which surged 241.3% to INR 432.26 billion compared with INR 126.66 billion for the 10 days to Apr. 3.
The turnover of copper surged 93.5%, lead shot up by 92.1%, zinc was higher by 81.5%, and aluminium up 54.7%. However, the turnover of natural gas fell 5.5% and gold was up just 2% during this period.
On Apr. 2, Trump unveiled expansive tariffs on the country's trade partners. China, one of the US' largest trading partners, was hit with a 54% tariff, the European Union with 20%, India with 26%, and Japan with 24%, among many others.
Analysts attribute the jump in turnover on MCX to panic selling, stop-losses triggered by extreme volatility, news-driven actions, squaring off of positions by broking firms, and portfolio churning by traders. Commodities such as silver, crude, and base metals fluctuated widely as panic gripped the market.
"Normally it is seen that whenever there is more volatility, whether it is in Indian markets or international, then the market volume is unprecedented," Manoj Jain, director at Prithvi Finmart, said. "Volume is directly linked to volatility in the market. Whenever there is an up and down, we see a good increase not only in the futures volume but also in the options volume," he said.
On the National Stock Exchange, shares of MCX closed 4.2% higher at INR 5,199.40 on Tuesday. End
Edited by Ashish Shirke
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