MCX.NS Stock Today: February 1 Plunges 18% on STT Hike Shock
MCX share price today plunged about 18% after Budget 2026 India proposed raising the Securities Transaction Tax on derivatives. Shares of MCX.NS fell as investors priced in weaker volumes and lower fee income for the exchange and its members. The plan lifts STT on futures to 0.05% from 0.02%, and to 0.15% on options premiums. Brokerage stocks also sank, adding to a broad risk-off move, with Sensex and Nifty down over 1% intraday. We break down the impact, risks, and what to track next for informed decisions.
MCX share price today: Why it crashed
The Union Budget proposed a higher transaction tax on derivatives: 0.05% on futures (from 0.02%) and 0.15% on options premiums. This adds direct trading costs and could lower participation, especially in short-duration strategies. Budget coverage indicates broader market pressure alongside policy changes. For context on key announcements, see Budget live updates from ToI source.
Raising per-trade costs can thin liquidity, widen spreads, and dampen turnover. For futures, the higher STT directly lifts breakeven. For options, taxing the premium raises costs for hedgers and market makers. This is why “STT hike commodity futures” concerns dominated and why we saw brokerage stocks crash alongside MCX, as revenue pools across the trading chain rely on volumes.
Revenue and volume risks for MCX
Exchanges earn from transaction fees, data, and other services, but turnover is the core driver. If volumes shrink, even modestly, revenue pressure appears quickly. Valuation magnifies the risk: TTM price-to-sales is about 35.98x and price-to-book about 30.83x. With MCX share price today dropping hard, investors are repricing growth expectations until demand elasticity becomes clear.
Lower turnover can compress broker earnings, clearing member fees, and allied revenues like financing and API services. If options activity cools, per-lot brokerage falls too. The STT hike commodity futures proposal may also shift strategies toward fewer trades or longer holding periods, reducing ticket count. This explains the synchronous weakness across listed brokers and market infrastructure plays.
Intraday action and technical setup
MCX share price today fell about 18% intraday as traders recalibrated tax-adjusted returns. Indices were weak too, with the Sensex and Nifty down over 1% at one point. Volatility spiked, reflected in a high Average True Range near 528.89 points. For short-term participants, wider ranges mean stricter position sizing and disciplined stop-loss placement.
Momentum turned extreme. RSI near 13.72 signals oversold, while ADX around 49.18 shows a strong trend that can keep prices pressured. Stochastic readings near zero warn of persistent weakness, and oversold can stay oversold in downtrends. Traders should watch intraday breadth, liquidity at key price zones, and any positive divergence before expecting a durable bounce.
What investors should track next
Budget proposals often see tweaks before the Finance Bill is passed and notified. Watch for final rates, effective dates, and any relief for hedging activity. Follow official clarifications and press briefings for signals on implementation pace. For broad Budget highlights, NDTV’s summary is a helpful primer source.
Track daily contract volumes and open interest in bullion, base metals, and energy. Sustained activity would soften the revenue hit; sharp declines would amplify it. Management commentary and any pricing actions matter. The next earnings update is due on 6 May 2026, which should offer guidance on volume trends, client feedback, and any operational levers to defend margins.
Final Thoughts
An abrupt tax shock pushed MCX share price today sharply lower as the market repriced trading economics for futures and options. Higher per-trade costs typically reduce turnover, which pressures exchange and brokerage revenues. Valuations were rich, so the impact on price was swift. From here, the path depends on the final Finance Bill, the effective date, and how much volumes actually moderate. Investors should track daily activity, liquidity, and spreads, along with management guidance during the May earnings update. For positioning, avoid knee-jerk decisions. Consider staggered entries only after volatility cools, technicals stabilize, and policy clarity emerges. Maintain strict risk controls given elevated ATR and trend strength.
FAQs
Why did MCX share price today fall so much?
The stock slid about 18% intraday after Budget 2026 India proposed raising transaction taxes on derivatives. A higher STT raises trading costs for futures and options, which can cut volumes. Since exchanges and brokers rely on turnover, the market priced in lower revenues and reduced growth visibility.
How big is the STT hike on futures and options?
The proposal lifts STT on futures to 0.05% from 0.02% and to 0.15% on options premiums. For example, on ₹1 crore futures turnover, STT rises from ₹2,000 to ₹5,000. On a ₹1 lakh options premium, STT would be ₹150. These higher costs can reduce activity.
Is the correction in MCX a buying opportunity now?
It depends on final tax rules and how volumes settle. Wait for clarity on the Finance Bill, monitor daily turnover and spreads, and watch technicals. Oversold readings can persist in strong downtrends. A steadier tape and improving liquidity would offer better odds for any staggered entry.
What should short-term traders watch after the crash?
Focus on volatility and liquidity. ATR is elevated, so position sizes should reflect wider ranges. Track VWAP and depth at key levels, and manage risk with tight stops. Look for positive momentum divergences and improving breadth before attempting contrarian trades in a strong downtrend.
How will brokerage stocks be affected by the STT hike?
Lower turnover hurts brokers through reduced commissions, market-making gains, and financing income. If options activity cools, per-lot brokerage also declines. This explains why we saw brokerage stocks crash alongside the exchange today. The extent depends on final tax rates and how quickly trading volumes adjust.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
