Hold Thy Breath As Indian Commodity Markets Getting More ‘Efficient'
Dalal Street Investment Journal|October 28 - November 10, 2019
The commodity markets in India have always been vibrant and thriving with innovations. Geyatee Deshpande explores what is in store for commodity markets in India with the advent of commodity options, and mutual funds being allowed to participate in commodity derivatives.
Geyatee Deshpande
Hold Thy Breath As Indian Commodity Markets Getting More ‘Efficient'

The Indian financial market is one of the most vibrant markets, not just in the emerging market space but across the world as well. A financial market consists of an equity market, commodity market, derivatives market, and a Forex market. Proper development of all these pillars is extremely essential for the holistic growth of the financial markets in any country.

Most of the investors are aware of the developments and innovations, which have been taking place in the Indian equity market. In fact, ours is one of the largest equity markets in the world. As markets get incrementally efficient, more and more investors participate in it, which further proliferate its efficacy. Efficient markets are always preferred by both, local and global investors. There was always a feeling amongst the investors and traders that the Indian commodity market has not progressed as much as the equity markets, both in terms of technology and available hedging options.

Recent development in the commodity markets in India:

There are essentially two major developments that promise a bright future for the commodity markets in India.

• Commodity underlying-based options will be making a debut on exchange soon.

• Mutual funds will be allowed to invest in India’s commodity derivatives market, touted to be a watershed moment for the markets.

Commodity underlying-based options:

The move to launch the commodity underlying based options promises to deepen the 16-year old commodity derivatives market in India. In a landmark announcement, the finance minister has enabled the launch of options contracts, which will base on the underlying commodity in lieu of having a futures contract as it's underlying, which is the norm currently.

هذه القصة مأخوذة من طبعة October 28 - November 10, 2019 من Dalal Street Investment Journal.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة October 28 - November 10, 2019 من Dalal Street Investment Journal.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

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