MCX's share price seems to have collapsed... this is the real reason!

Investors tracking Multi Commodity Exchange (MCX) shares experienced a sudden shock on Friday morning. On Thursday, the stock had closed at ₹10,989, but when trading began on Friday on the NSE, the opening price was only around ₹2,230, leaving many surprised.

However, this was not an actual crash in the stock price. The change occurred due to MCX’s 1:5 stock split, which came into effect from January 2. Under this decision, one MCX share with a face value of ₹10 was split into five shares, each having a face value of ₹2.

Accordingly, a single share that closed at ₹10,989 on January 1 was divided into five shares, each opening at approximately ₹2,230. In value terms, this means the stock effectively began trading around ₹11,150 (5 × ₹2,230).

During the trading session, the share price rose by nearly 4 percent at one stage and touched its 52-week high of ₹2,278. It finally closed at ₹2,219. When the total value is considered, this works out to approximately ₹11,095, indicating that the stock still ended the day with a gain.