Narrow commodities replaced base metals in generating most of the revenue on the Ahmedabad-based National Multi Commodity Exchange (NMCE) in the first fortnight of September, due to increasing role of day traders and speculators with the sole aim of making a profit.
Overall turnover in sacking, a narrow commodity of around Rs 2,000 crore and restricted largely to West Bengal, Andhra Pradesh and Bihar, hit a high of Rs 1,212 crore between September 1 and 15. The commodity witnessed a marginal Rs 82 crore during the fortnightly period three months earlier.
The change is significant as the exchange was popularly known for plantation crops such as coffee, rubber and spices. Of late, the exchange has diverted its attention to grab a pie of rapidly growing base metals, which earned it the highest turnover during the fortnight ended June 15.
Anil Mishra, managing director of NMCE, attributed the change in turnover dynamics to traders’ frequent change in preferences. “Day traders and speculators eye only profits. Wherever such traders see opportunity to make money, they switch immediately to that counter,” said Mishra. He said NMCE had not made any special effort to generate turnover in any narrow commodities.