MCX is the best way to play the gold rally, says Elixir's Dipan Mehta

Dipan Mehta, Director at Elixir Equities, said the Multi Commodity Exchange of India (MCX) is the best listed option for investors looking to benefit from rising gold trading volumes.

“The best way to play gold is MCX,” Mehta said.

He said the exchange gains not only from higher gold prices but also from increased trading activity, particularly in the options segment. Mehta added that MCX is part of his investment portfolio, while noting that the stock is currently priced at higher valuation levels.

Mehta also said gold finance companies such as IIFL Finance, Muthoot Finance and Manappuram Finance remain investment options, but rising competition in the segment could put pressure on margins over time.

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According to him, Indian markets have seen steady corporate results so far this earnings season as most companies have reported numbers in line with expectations, with a few large names lagging.

“My eye is just on the earnings season,” Mehta said.

He noted that sectors such as large private banks, software services firms and one major consumer company have underperformed, while most others delivered stable results. He added that reported profit figures look weaker in some cases due to accounting changes linked to labour code implementation, but underlying performance remains steady after adjusting for exceptional items.

“This quarter has been pretty decent for markets across the board,” he said.

On the energy sector, Mehta said investors should focus on distribution and transmission companies rather than equipment makers or end users. He believes transmission firms offer a better balance between growth and risk as grid expansion continues.

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He said companies involved in transmission towers and related infrastructure stand to benefit as power demand rises and networks expand.

Mehta said real estate stocks have underperformed this year due to high property prices and developers focusing on premium projects, which has slowed volumes.

“They are hitting some sort of an air pocket,” he said.

However, he added that developers are now prioritising cash collections, lowering debt and adding new projects with lower capital needs, which could support the sector over the next few years.

Mehta said defence stocks are now widely owned and researched, with limited upside from current levels.

“I think time to move on beyond defence,” he said.

Instead, he said his focus has shifted to mid-cap and small-cap stocks where earnings are improving and management commentary is positive. He described the current phase as a long-term buying opportunity due to lower valuations.

For the full interview, watch the accompanying video

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