MUMBAI, January 30, 2026, 15:40 IST
- Energy made up 65% of MCX options premium turnover through Jan. 23, surpassing bullion, according to data cited by Mint.
- Options have overtaken futures in revenue generation for MCX, boosting both its earnings and share price, Mint reported.
- The move follows SEBI’s crackdown on equity derivatives regulations, while commodities like crude oil and gold experience sharp swings.
On India’s Multi Commodity Exchange (MCX), crude oil and natural gas options have overtaken gold and silver in popularity, accounting for 65% of options premium turnover so far this month through Jan. 23, according to data cited by Mint. Between Nov. 1 and Jan. 23, energy contracts saw about 2.89 trillion rupees in options premium turnover, compared to 1.84 trillion rupees for bullion.
India’s retail trading pivot is notable because tighter rules now clamp down on equity futures and options, pushing some traders to hunt for more liquid alternatives. According to The Economic Times, commodities are regaining traction amid a stagnant Indian equity market. Gold and silver are hitting record highs, MSCI India is trailing global peers, and foreign investors are pulling out.
MCX is seeing a boost, along with brokers who handle those trades. According to Mint’s Top of the Morning newsletter, options now generate more revenue for MCX than futures do. This shift has helped the exchange more than double its income as energy options trading picks up.
The fee breakdown reveals the exchange’s priorities. According to the Mint report, options brought in roughly 380 crore rupees in transaction fees during the September quarter, while futures accounted for around 227 crore rupees.
“These tensions have pushed up volatility in the energy basket,” said Amit Chandra, vice president (research) at HDFC Securities, pointing to geopolitical factors. Rajesh Palviya, head of commodities and currencies at Axis Securities, added that traders are leaning into energy options, aiming for quick profits amid the swings.
Online brokers are lowering the barriers for small traders. Groww began offering commodity derivatives last year, and the client base trading commodity options has climbed to roughly 890,000, Mint reported. The bulk of trades focus on crude oil and natural gas.
Volatility is off the charts, even for commodities. Natural gas saw its high-low range balloon to roughly 132% through Jan. 23, up from just 18.4% in November. Gold’s contract followed suit, jumping to about 20.3% from 7.4%, according to Mint, which referenced Bloomberg data.
Contract design plays a key role. Foreign investors in India are limited to trading cash-settled energy contracts—profits and losses are settled in cash, not by physical delivery of the commodity—boosting liquidity for crude and gas compared to bullion, according to the Mint report.
Gold’s sharp reversal kept commodities in focus. Spot gold dropped 1.3% on Thursday, after earlier hitting a record peak of $5,594.82. Silver also tumbled, down 4.5% following its own record high, Reuters reported. “We are seeing a dramatic sell-off after a very big move higher,” said David Meger, analyst at High Ridge Futures. https://www.reuters.com/world/middle-east/gold-sinks-13-after-profit-taking-amid-signs-us-iran-talks-2026-01-29/
The commodity market isn’t moving uniformly, according to a Whalesbook analysis this week. Precious metals remain firm, even as other parts of the commodity complex show signs of weakness. This divergence is creating a tricky hedging environment for India.
That same volatility attracting traders can quickly reverse. If geopolitical tensions ease, winter demand drops, or crude prices stabilize, the options frenzy could evaporate fast. Regulators might also step up oversight of commodity derivatives if retail losses grow and leverage-driven activity spikes.
Right now, the flow appears steady: tighter rules on equity derivatives, a choppy stock market, and volatile swings in metals and energy are driving more activity into commodity options. MCX and brokers are gearing up for this change, with the coming weeks of price action set to determine if it holds.
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