Stay positive on MCX as commodity biz set to grow significantly: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his view on what is making the analyst community so bullish on MCX.

ET Now: You do track MCX? If yes, then can you tell us why we do not hear even a single bear call on MCX? It seems that almost everybody on the Street is bullish on the stock.

Deven Choksey: There are a couple of reasons to remain bullish on this particular stock. The major one is the fact that MCX is the only listed exchange in the marketplace. Therefore, certainly, we are seeing investors allotting more amount of money to this particular stock.

It is expected that the commodity business is expected to grow significantly. My reading says that like BSE and NSE, the commodity exchange may also move into SEZ .

That is where you would see it trading on a global asset-platform. The exchange business, which is driven by a number of transactions, may grow because of this. Therefore, I would remain bullish on this aspect.

Yes, I do realise that at this point of time, the commodity volumes have come down significantly than what they used to be earlier.

But teh formation of new regulatory body is definitely going to be an added-advantage to commodity exchange like MCX.

Therefore, I would remain positive, though I do not have any price target call at this point of time. But certainly, I would remain positive on this business.