Neutral impactCommodity
Why traders are moving away from equity F&O to commodities? Nithin Kamath explains
Economic Times 1 hr ago·2 Nov 2026, 3:08 pm
Data from the past fiscal year show a pronounced shift in Indian derivatives trading. The pool of participants in commodity contracts grew by about 60% to roughly 21 lakh, while those active in equity futures and options fell around 20% to about 85 lakh.
The move matters because commodity trading on the Multi Commodity Exchange (MCX) offers higher volatility and new option products, and longer trading hours have attracted risk‑seeking investors. More traders can lift MCX’s turnover, improve liquidity and potentially raise the exchange’s fee earnings.
Investors should watch MCX’s volume trends, any changes in margin rules, and how extended sessions affect price swings. Additionally, shifts in global commodity prices or domestic policy could either reinforce the current inflow or prompt a reversal toward equity derivatives.
Affected stocks
Neutral1 stock
Bull / bear label is derived from the article's AI sentiment — indicative, not advice. Prices may be delayed.
Key takeaways
- Concerns Multi Commodity Exchange (MCX).
- Category: Commodity.
Why it matters
A routine update for Multi Commodity Exchange. Use the price and stock snapshot to gauge how the market is responding.
