The Nifty Capital Market index extended rally for the eighth consecutive session on June 9, 2025, led by gains in key players like Multi Commodity Exchange of India (MCX), Aditya Birla Sun Life AMC (ABSLAMC), and Indian Energy Exchange (IEX).
The index gained as much as 2.35 per cent during the day. With today’s gain, the index has now jumped nearly 15 per cent over the past eight trading sessions and is up more than 55 per cent in the last three months.
MCX Share Price Jumps After Sebi Approves Electricity Derivatives
Shares of MCX jumped as much as 7.45 per cent in early trade to touch a new all-time high of Rs 7,971 per share on the National Stock Exchange (NSE). The rally came after it got approval from the capital markets regulator the Securities and Exchange Board of India (Sebi), for launching electricity derivatives.
This opens up a completely new market for the Exchange, which is expected to attract new market participants and thereby increase trading volumes. More trading volume means more revenue for the Exchange.
IEX Share Price Gains After Strong Growth In Electricity Trading Volumes
IEX shares gained for a second straight session after the Exchange reported strong growth in its electricity trading volumes for May 2025. The Exchange recorded 10,946 million units (MU) of electricity traded last month, up 14 per cent year-on-year (YoY). This came even as India’s total power demand fell 4 per cent during the month. “Unseasonal rains and the early onset of the monsoon kept temperatures lower than usual, leading to reduced electricity demand,” IEX explained in its release dated June 4, 2025.
Simultaneously, higher generation of hydro, wind, and thermal energy resulted in higher supply liquidity on the exchange platform which led to a sharp decline in prices in both the Day-Ahead and Real-Time markets. “These prices presented an opportunity for Discoms and Commercial & Industrial consumers to meet their demand at a competitive price and to replace their costlier power by procuring through exchanges,” the Exchange platform explained.
Meanwhile, green energy trading also picked up pace. Volumes in the Green Market rose 47 per cent YoY, while trading in Renewable Energy Certificates (RECs) shot up 65 per cent from last year.
CDSL, BSE, Nuvama, ABSLAMC And Others Also Gain
Shares of shares depository services provider Central Depository Services Limited (CDSL), brokerage and asset management firms like ABSL AMC, UTI AMC, Motilal Oswal Financial Services, Nuvama Wealth Management, and Nippon Life India Asset Management and HDFC AMC also gained in the range 0.5 per cent to 3.5 per cent. Shares of Exchange platform BSE (formerly Bombay Stock Exchange), registrar and transfer agency Computer Age Management Services (CAMS) also gained in trade today.
As the stock market continued to recover from a slump induced after US President Donald Trump’s uncertain global trade policies, India-Pakistan conflict, Russia-Ukraine’s ongoing war and other geopolitical and domestic factors, capital market stocks saw gains.
The recovery in the domestic market started after a series of positive developments. The biggest trigger came on April 7 when Trump announced a 90-day pause in the tariffs, which he had imposed earlier on April 2. This decision eased concerns of a potential trade war and a global economic slowdown.
The Reserve Bank of India (RBI), too, in its Monetary Policy Committee (MPC) meeting in April, went for a 25 basis point cut in the repo rate, which added to the momentum. Again, the RBI MPC announced a 50 basis point cut in the repo rate during its June MPC meet, bringing it down to 5.5 per cent. This also boosted market sentiment. When RBI cuts the repo rate, it lowers borrowing costs for banks, which in turn reduces lending rates for businesses and consumers, thereby boosting demand in the economy.
The ceasefire between India and Pakistan after days of intense cross-border violence also brought a sense of stability to the market.
Daily Average Trading Volume In Cash Market At 8-Month High
These events, along with several other geopolitical and domestic factors, helped revive investor sentiment in the equity market, which had been lagging for the past several months. Due to the revival in investor sentiment, the daily average trading volume in the cash segment of both the exchanges – NSE and BSE – rose 11 per cent to Rs 1.19 lakh crore in May 2025, as against the previous month. This is the highest level since September 2024, when daily volumes touched Rs 1.3 lakh crore. However, it is still 28 per cent lower than the high of Rs 1.65 lakh crore seen in June last year.
Higher activity in the market means higher revenue generation for capital market-related companies.
