India's MCX falls 7% after delay in naming permanent software provider

63 Moons Technologies

02/01/2023 07:08

** Shares of Multi Commodity Exchange of India  MCEI.NS 
fall as much as 7.25%, steepest intraday decline in 10 months,
to 1441.50 rupees apiece
    ** Trading volume is 8,87,973 shares, as of 11:45 a.m. IST,
nearly 3x the 30-day avg of 3,19,571
    ** The exchange extended its contract with existing software
platform provider - 63 moons till June 2023, on Friday
    ** Uncertainty over software costs and timeline of eventual
software migration continues: ICICI Securities
    ** The software agreement between 63 moons and MCX ended on
Sept. 30, 2022
    ** 63 moons and MCX agreed to a fresh arrangement for
software support services, for three months after September,
which has now been extended
    ** ICICI Securities downgrades stock to "add" from "buy"
after the company's decision, and reduces target from 1,796
rupees to 1,669 rupees    
    ** MCX had earlier selected Tata Consultancy Services
 TCS.NS  to develop a new software system for the exchange
    ** Morgan Stanley maintains "underweight" on the stock with
the price target kept unchanged at 1,220 rupees, citing sluggish
earnings progression
    ** Shares of 63 moons  63MO.NS  rise as much as 6.80%,
highest in nearly three months
($1 = 82.5750 Indian rupees)
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))