MCX tumbles on buzz NYSE Euronext calls off stake sale

MCX fell 4.47% to Rs 970.45 at 14:40 IST on BSE on reports NYSE Euronext on Thursday, 7 March 2013, called off its plans to sell its entire stake of 4.79% in MCX because of a poor response from investors. Meanwhile, the BSE Sensex was up 254.20 points, or 1.31%, to 19,667.74. On BSE, 14.21 lakh shares were traded in the counter as against an average daily volume of 35,377 shares in the past one quarter. The stock hit a high of Rs 1,036 and a low of Rs 955 so far during the day. The stock had hit a record high of Rs 1,617 on 13 November 2012. The stock had hit a record low of Rs 838 on 31 May 2012. The stock had underperformed the market over the past one month till 7 March 2013, sliding 24.19% compared with the Sensex's 0.85% fall. The scrip had also underperformed the market in past one quarter, sliding 33.94% as against Sensex's 0.05% fall. The mid-cap company has an equity capital of Rs 51 crore. Face value per share is Rs 10. According to reports, NYSE Euronext, which runs the New York Stock Exchange, had lined up a sale of its 24.42 lakh shares of MCX on Thursday, 7 March 2013, and had fixed a price range of Rs 1,005.10 to Rs 1,026.25 per share. However, the share sale through block deals on the bourses was called off as it met with lacklustre investor response. According to reports, the offered price range was higher than expected. Shares of MCX fell 3.81% to Rs 1,015.85 on Thursday, 7 March 2013. NYSE Euronext had acquired the stake in MCX in June 2008 at a price of Rs 559 per share, reports suggested. The sale is part of NYSE Euronext efforts to monetise non-strategic assets, reports added. Finance Minister P Chidambaram in Union Budget 2013-14, proposed to levy commodity transaction tax on non agri-commodities futures. It is time to introduce Commodities Transaction Tax (CTT) in a limited way, the FM said in his Budget speech on 28 February 2013. The FM proposed CTT on non-agricultural commodities futures contracts at 0.01%. Trading in commodity derivatives will not be considered as a 'speculative transaction' and CTT shall be allowed as deduction if the income from such transaction forms part of business income, the Finance Minister said. MCX's net profit rose 10.3% to Rs 75.87 crore on 3.9% decline in net sales to Rs 124.56 crore in Q3 December 2012 over Q3 December 2011. MCX is a dominant player in commodity exchanges in India. As on 31 March 2012, MCX had a market share of 86% of the Indian commodity futures market.