Commodity Market In India

  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |

What is a commodity market?
It is a market where commodities are traded in standardized contracts on regulated commodity exchanges.
In India, there are three main online multi-commodity exchanges:

Multi Commodity Exchange (MCX): Established in 2003, MCX is the largest commodity exchange in India with more than 80% market share of India's commodity trading market. MCX offers commodities trading in more than 40 commodities including bullion, metals, energy, oil & oil seeds, plantations, pulses, weather, cereals, spices and fiber.
National Commodity and Derivatives Exchange (NCDEX): This online commodity exchange based in Mumbai, India was founded in 2003 by national level institutions. Trading in more than 57 commodities including agricultural commodities, bullion, energy, ferrous metals, plastics and non-ferrous metals is offered in NCDEX through more than 550 centres across India.

National Multi Commodity Exchange of India (NMCE): NMCE, the first online multi-commodity exchange in India is based in Ahmedabad, Gujarat. NMCE provided trading in more than 44 commodities including oil & oil seeds, spices, pulses, precious metals and base metals.

Commodity market has seen a manifold increase in the last few years. Although, trading in commodities in India can be traced back to 1875, it has in recent years emerged as an asset class which is favored along with equity by Indian investors to diversify their portfolio and make money.
Top five commodity exchanges in 2009 were:-

1.Shanghai Stock Exchange based in China
2.Chicago Merchantile Exchange based in UnitedStates
3.Dalian Commodity Exchange based in China
4.Zhen Zhou Commodity Exchange based in China
5.Intercontinental Exchange based in United States

Rate this Article:
  • Article Word Count: 254
  • |
  • Total Views: 12
  • |
  • permalink
  • Print Article |
  • Send to a Friend |
  • |
  • Add to Google |
Popular Articles by sameer dhotre
>