Real Estate
MCX: The Best Way to Capitalize on the Gold Rally, According to Elixir's Dipan Mehta
2026-01-29 · Geosquare
Dipan Mehta, Director at Elixir Equities, has shared his insights on the current market trends and investment opportunities. According to Mehta, the Multi Commodity Exchange of India (MCX) is the best listed option for investors looking to benefit from the ongoing gold rally.
“The best way to play gold is MCX,” Mehta emphasized. He explained that MCX not only gains from higher gold prices but also from the surge in trading activity, particularly in the options segment. Despite the stock being at higher valuation levels, Mehta believes it is a solid addition to his investment portfolio.
Mehta also mentioned gold finance companies such as IIFL Finance, Muthoot Finance, and Manappuram Finance as potential investment options. However, he cautioned that increasing competition in the sector could put pressure on margins over time.
When it comes to the broader market, Mehta noted that the earnings season has been steady, with most companies reporting numbers in line with expectations. While a few large firms have lagged, the overall performance has been stable. He pointed out that reported profit figures may appear weaker due to accounting changes linked to the implementation of new labour codes, but the underlying performance remains robust after adjusting for exceptional items.
“This quarter has been pretty decent for markets across the board,” Mehta commented.
In the energy sector, Mehta advises focusing on distribution and transmission companies rather than equipment makers or end users. He believes that transmission firms offer a better balance between growth and risk, especially as grid expansion continues. Companies involved in transmission towers and related infrastructure are expected to benefit from the rising power demand and expanding networks.
On the real estate front, Mehta observed that stocks have underperformed this year due to high property prices and developers concentrating on premium projects, which has slowed volumes. However, he noted that developers are now prioritizing cash collections, reducing debt, and adding new projects with lower capital needs, which could support the sector in the coming years.
“They are hitting some sort of an air pocket,” Mehta said, but added that these changes could lead to a more sustainable growth path.
Regarding defence stocks, Mehta believes they are now widely owned and researched, with limited upside potential from current levels. He advises moving beyond the defence sector and focusing on mid-cap and small-cap stocks where earnings are improving and management commentary is positive. Mehta views the current phase as a long-term buying opportunity due to lower valuations.
“I think it's time to move on beyond defence,” he said.
Overall, Mehta's investment strategy is centered on identifying sectors and companies that offer a balance between growth and risk, with a particular emphasis on mid-cap and small-cap stocks for long-term returns.