The Financial Technologies group operates one of the world’s largest network of 10 exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending, and payment gateway among others.
Rating agency Crisil today said the proposed initial share sale of Multi Commodity Exchange of India (MCX) has strong fundamentals, especially reflecting its leadership position in the Indian commodity futures market.
MCX filed draft papers for the IPO with capital market regulator Sebi on March 31.
Crisil has given "five on five" IPO grade for MCX, which is promoted by Financial Technologies India.
"This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India," the rating agency said in a statement.
According to Crisil, the grade also reflects MCX's leadership position in the Indian commodity futures market over the past four years. The entity had an 82% share of the overall traded turnover in fiscal year 2010.
"It is a leader in the trading of bullion, crude oil, copper and natural gas," the statement noted.
"With a strong technology-backed trading platform and infrastructure, MCX is able to provide high liquidity and low impact cost of transactions – key criteria for the success of any exchange," it added.
Crisil pointed out that the rating also considered the benefits that MCX would derive from amendments to the Forward Contracts (Regulation) Act -- that would allow trading of options and indices as well as participation by institutional investors. This would in turn increase the traded turnover on commodity exchanges.
"While new commodity exchanges have been set up over the past couple of years, they have not been able to nudge MCX from the top. However, we expect competition could intensify in the future," it said.
MCX's operating income has increased at a CAGR (Compound Annual Growth Rate) of 18.3% over FY08-10.
So consider financial technology as a trading idea and i think it can be bought around 800 levels and can sell at around 860-890 levels...Please note down that this is a momentum call and dont wait for exact target in volatile market conditions.Act wisely........................................