MCX Trading Halted for 4 Hours: Tech Glitch Sparks Concerns as Nifty Hovers Near 26,000

India’s commodity derivatives market witnessed a major disruption on Tuesday, October 28, 2025, when the Multi Commodity Exchange (MCX) faced a severe technical glitch that halted trading for over four hours. This marks the second such incident in just four months, raising serious questions about the exchange’s technical infrastructure and reliability.

Four-Hour Trading Halt Disrupts Commodity Markets

The trouble began at 9:00 AM IST when MCX failed to commence its regular trading session. What was initially communicated as a brief delay turned into an extended crisis that kept traders waiting until 1:25 PM. The exchange issued multiple updates throughout the morning, repeatedly pushing back the start time from 9:30 AM to 9:45 AM, then to 10:00 AM, 10:30 AM, and 11:05 AM before operations finally resumed in the afternoon.

MCX, which accounts for nearly 98 percent of India’s commodity futures trading by value, was forced to shift its operations to its Disaster Recovery (DR) site—a backup system designed to maintain continuity during primary infrastructure failures. The exchange trades essential commodities including gold, silver, crude oil, natural gas, and various base metals, making the disruption particularly concerning for market participants.

In an official statement, MCX confirmed the technical issue and expressed regret for the inconvenience caused to market participants. The exchange has initiated a priority investigation to identify the root cause and implement corrective measures. However, specific details about the nature of the glitch remained undisclosed.

Shares of MCX fell over 1 percent during early trading on the National Stock Exchange, slipping to Rs 9,220, as news of the disruption spread across markets.

Pattern of Recurring Technical Issues Raises Concerns

This isn’t MCX’s first brush with technical difficulties. The exchange faced a similar glitch on July 23, 2025, when trading was delayed by over an hour before resuming around 10:17 AM. Going further back, in February 2024, MCX suffered a major four-hour suspension linked to its transition to a new trading platform.

According to reports, the exchange has been experiencing technical problems for the past two to three days, with trading orders not getting confirmed and settlement files arriving late. The Commodity Participants Association of India has raised these issues with the exchange multiple times and has sought a meeting with the MCX chairperson to address these recurring problems.

Market regulator SEBI has now stepped in, seeking detailed information about the four-hour disruption and the circumstances that led to the prolonged delay in shifting operations to the backup site. The scrutiny comes at a sensitive time, as MCX had just launched monthly options contracts on the MCX iCOMDEX Bullion Index (MCX BULLDEX) on October 27, which tracks highly traded gold and silver futures.

Equity Markets Show Resilience Despite F&O Expiry Volatility

While commodity traders grappled with the MCX outage, equity market participants faced their own set of challenges on the monthly F&O expiry day. The NSE Nifty 50 and BSE Sensex displayed typical expiry-related volatility, swinging between gains and losses before closing marginally lower.

The previous trading session on October 27 had seen a strong rally, with the Nifty surging 170.90 points (0.66 percent) to close at 25,966.05, coming tantalizingly close to the psychologically important 26,000 mark. During intraday trading, the index briefly touched 26,005.95, breaching the resistance level for the first time since September 2024, though it failed to sustain above this threshold.

The Sensex mirrored this strength, climbing 566.96 points (0.67 percent) to settle at 84,778.84, while the Bank Nifty demonstrated exceptional momentum with a 496-point (0.86 percent) surge to 58,196.

However, Tuesday’s monthly expiry session brought a reality check. After opening nearly flat, the Nifty experienced significant intraday swings, touching a high of 26,041.70 before encountering strong resistance. Unable to hold above 26,000, the index reversed sharply, testing support at 25,840 before eventually closing at 25,936.20, down 29.85 points (0.11 percent).

The Sensex fell 150.68 points (0.18 percent) to close at 84,628.16, after experiencing an intraday range of over 700 points. Despite the losses, both indices managed to recover substantially from their day’s lows, bouncing back over 470 points from the lowest levels, demonstrating underlying resilience.

Sectoral Performance: Metals Shine, Realty and IT Lag

The session witnessed divergent sectoral trends. Metal stocks emerged as clear winners, with the Nifty Metal index advancing over 1 percent for the fifth consecutive day. Tata Steel topped the gainers’ list, rising 2.97 percent to Rs 181.85, buoyed by robust metal prices and optimistic demand forecasts. JSW Steel also gained significantly, supported by renewed optimism following China’s announcement to curb steel overcapacity and potential progress in US-China trade relations.

PSU banking stocks also attracted buying interest, with the Nifty PSU Bank index rising 1.2 percent. The sector gained traction after reports suggested the government may increase the foreign investment holding limit in state-run banks to 49 percent. State Bank of India gained 0.76 percent to Rs 930.25, benefiting from this positive sentiment.

On the flip side, realty stocks faced the maximum selling pressure, with the index declining the most among sectors. IT and consumer durables stocks also witnessed profit-booking. Trent emerged as the top loser, falling 1.54 percent to Rs 4,725.60, while ICICI Bank declined 1.05 percent to Rs 1,363.20. Tech Mahindra and Bajaj Finserv also featured among the top losers, dropping around 1 percent each.

CarTrade Tech Steals the Show with Blockbuster Earnings

Amidst the market volatility, CarTrade Tech emerged as a standout performer, with its shares surging as much as 18 percent to hit a fresh 52-week high of Rs 3,143 on the BSE. The online automotive reselling platform’s stellar performance came on the back of exceptional second-quarter results that significantly exceeded market expectations.

The company reported consolidated net profit of Rs 64.1 crore in Q2 FY26, marking a remarkable 109 percent year-on-year jump from Rs 30.7 crore in the same quarter last year. Sequentially, profit rose 36.1 percent from Rs 47.1 crore in the previous quarter. Revenue from operations climbed 25 percent to Rs 193.4 crore, up from Rs 154.2 crore a year earlier.

What particularly impressed investors was the company’s operational efficiency. Total expenses increased modestly by just 5.3 percent year-on-year to Rs 142.2 crore, even as the business expanded significantly. The company’s Consumer Group division drove growth, with revenue rising 37 percent year-on-year and profit after tax up 82 percent. The unit achieved an impressive 40 percent EBITDA margin—described by the company as “a benchmark for excellence in the industry.”

OLX India, which CarTrade acquired in 2023, also delivered strong gains, with revenue growing 17 percent year-on-year while profit after tax surged 213 percent. The platform achieved a 30 percent EBITDA margin in Q2 FY26, continuing its quarter-on-quarter growth trajectory.

The strong performance has extended CarTrade Tech’s remarkable run in 2025. The stock has gained 15 percent in the past month alone and is up 85.5 percent year-to-date. Over the past year, shares have soared 169 percent, underscoring investor optimism about the company’s turnaround and growth prospects.

What to Watch Next

For Commodity Markets:

• SEBI’s detailed investigation report on the MCX technical glitch and recommended corrective measures
• MCX’s response to the Commodity Participants Association’s concerns about recurring technical issues
• Potential regulatory action or stricter monitoring protocols for exchange infrastructure
• Impact on trader confidence and trading volumes in the coming sessions

For Equity Markets:

• Nifty’s ability to decisively break and sustain above the 26,000 psychological resistance level
• Bank Nifty’s movement toward its all-time high of 58,700, currently just 500 points away
• US Federal Reserve’s policy decision on October 30 (Wednesday), with expectations of a rate cut
• Progress in US-China trade negotiations, with a potential Trump-Xi meeting scheduled for Thursday
• Continued Q2 FY26 earnings announcements from major corporates, which will influence sector-specific movements

Key Technical Levels for October 29:

• Nifty 50: Support at 25,800-25,850; Resistance at 26,050-26,100
• Bank Nifty: Support at 57,800-58,000; Resistance at 58,300-58,500
• Sensex: Support at 84,200-84,500; Resistance at 84,850-85,000

The coming sessions will be crucial as markets digest global cues, navigate technical levels, and assess the implications of the MCX disruption on India’s commodity trading ecosystem. While equity markets appear well-positioned for a potential breakout, sustained momentum will require supportive global developments and continued earnings strength.

Disclaimer: This article is only for information purposes and is not investment advice. Before investing, do your own research.