MCX Commodity Indices

The Multi Commodity Exchange (MCX) has become a dominant force in the fast-moving world of trading and investing, providing a variety of options for market participants. Out of the buffet of instruments, commodity indices have grown enormously in popularity and are acting as a complete tool to follow and participate in the commodities market. In this piece, we’ll analyze the possibilities of the commodity indices available on MCX and delve into their intriguing space.

Commodity indices are used as standards to evaluate the general well-being of a certain set of commodities. They serve as a representation of price changes and the overall performance of the assets included in the index. With the help of commodity indices, market participants can acquire exposure to a variety of commodities without having to engage in trading each one directly. 

The largest commodities exchange in India, MCX, provides a broad selection of commodity indices to meet the various demands of market participants. Moreover, these indices include bullion, energy, and metals index.


Its holds a composition of 66.66% (gold) and 33.34% (silver). The various characteristics BULLDEX index are as follow:

  • BULLDEX has an inverse correlation with the US dollar.
  • The index composed of gold and silver as mentioned above which act as safe-haven during the economic uncertainties.
  • Due to the presence of gold and silver which holds inverse correlation with equities, the index is also inversely correlated to equity market in long run.

It includes the five base metals that are listed on MCX. Moreover, these are Copper, Nickel, Zinc, Aluminium, and Lead. The inclusion of major base metals makes it a benchmark for the manufacturing sector. Additionally, the weightage percentages of the base metals in METLDEX are:

  • Copper 35%
  • Nickel 32%
  • Zinc 16%
  • Aluminium 12%
  • Lead 5% (The metal % are rounded off to the nearest integer)

It includes the energy commodities listed on i.e. Crude oil and natural gas. The weights of the above-mentioned commodities in MCX ENRGDEX are Crude Oil – 75% and Natural Gas – 25%.

Note: The composition of all the above mentioned indices remain same for an entire year and rebalancing happens only once a year which will be implemented in January of next year.

To conclude, MCX commodity indexes offer market participants a fascinating entry into the vast commodities market. Experienced traders value these indices for diversification, tracking market movements, and profiting from macro events. Additionally, as MCX continues to develop and adapt, it primes the world of commodities indexes for additional expansion, drawing a wider audience and opening new avenues for profitable possibilities.