MCX electricity futures clock record Rs 245 crore turnover as OI touches all-time high

MCX electricity futures recorded their highest-ever single-day turnover of Rs 245 crore on September 4, marking a fresh milestone for the contract as participation deepens in India’s power derivatives market.

The contract saw volume of 4.20 lakh MWh on the day, the highest since its launch. Open interest also touched an all-time high of 1.40 lakh MWh, signalling stronger participation from market users looking to manage electricity price risk.

The record turnover comes as trading activity in the contract has steadily improved. Average daily volume rose to 89,213 MWh in FY27 till September 3, from 65,631 MWh in FY26, a growth of about 36%.


Open interest shows wider adoption

The rise in open interest has been sharper. Average open interest increased to 76,357 MWh in FY27 till September 3 from 52,548 MWh in FY26, showing growth of nearly 45%.

Higher open interest is an important signal for a futures contract because it shows that traders are not merely entering and exiting positions quickly, but are also carrying exposure. In electricity futures, this points to growing use of the product for price-risk management.

The contract has seen active trading across all four expiry-month contracts. This indicates participation across the curve, rather than concentration only in the near-month contract.

Liquidity has also improved in far-month contracts, giving market participants more room to manage electricity price exposure over a longer period. This can help power producers, buyers and financial participants hedge against price volatility with better visibility.

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