Biz of MCX continues to be good for long term: Sekhar

Phani Sekhar, Fund Manager of Angel Broking feels the business of MCX continues to be good from a very long-term perspective.

Sekhar told CNBC-TV18, “The business of MCX continues to be good from a very long-term perspective. But from a near to medium term view the levy of commodities transaction tax (CTT) is a major irritant. And I don’t think the current stock price is fully discounting the impact of that because the market is actually relying heavily on the 2008 experience when it was introduced in the Budget but was eventually scraped from the finance bill.”
“A section of the investors are hoping for a repeat of the same but I don’t think that is going to happen. And if the CTT were to come then you would definitely see lower levels on MCX because commodity trading is a major bread winner for MCX since the new equity stock exchange has recently started. So considering that it will be a good idea for the investor to book his losses for the moment and then wait out and see where it goes because if CTT were to come it can meaningfully go down another 10-15 percent very easily,” Sekhar added.