Why MCX shares plunged 80% in early trading today
What's the story
Shares of Multi Commodity Exchange (MCX) plummeted over 80% in early trade today. The stock hit an intraday low of ₹2,192 on the Bombay Stock Exchange (BSE), down from yesterday's closing price of ₹10,988.60. However, investors need not panic as this sharp decline is just a technical adjustment due to the company's 1:5 stock split.
Corporate action
MCX's 1st-ever stock split
January 2 is the record date for MCX's first-ever stock split, a corporate action announced in September 2025. From today, the stock will trade ex-split, meaning only those who bought shares on or before January 1 would be eligible for additional shares from the sub-division. Under this plan, each equity share of ₹10 face value will be divided into five shares of ₹2 each.
Stock performance
Post-split adjustment and market reaction
After the split adjustment, MCX shares rose 3.6% from their intraday low of ₹2,192 to a day's high of ₹2,271. The total value of investment remains unchanged after the split but with a lower price per share, it is expected to improve affordability and liquidity in the stock. The post-split drop is part of a normal pattern seen around such corporate actions as investors tend to book profits short-term after these events.
Market strategy
MCX's strategy to attract retail investors
The fundamentals of MCX remain intact post-split, with the move aimed at attracting more retail participation by making the stock more accessible. As the market adjusts to this change, it could pave the way for stronger volumes and wider investor interest in future sessions.