The three national commodity exchanges — the Multi Commodity Exchange (MCX), the National Commodity & Derivatives Exchange (NCDEX) and the National Multi Commodity Exchange (NMCE) — recorded a 45 per cent rise in turnover in August 2008 as compared to last year.
The rise was brought about primarily by renewed investor interest in commodity trading. However, the turnover witnessed a 20 per cent decline compared with July.
| MIXED BAG | |||
| Month |
Turnover (Rs crore) | ||
| MCX | NCDEX | NMCE | |
| August ‘07 | 225,339.00 | 67,351.49 | 2,782.21 |
| September ‘07 | 212,345.60 | 49,886.17 | 2,022.10 |
| October ‘07 | 269,000.70 | 51,066.88 | 3,114.86 |
| November ‘07 | 292,075.40 | 46,055.32 | 2,180.28 |
| December ‘07 | 224,616.83 | 41,486.41 | 1,968.60 |
| January ‘08 | 359,806.76 | 66,832.08 | 3,931.78 |
| February ‘08 | 347,539.05 | 69,234.21 | 3,665.57 |
| March ‘08 | 360,119.61 | 87,772.32 | 15,254.31 |
| April ‘08 | 263,693.00 | 47,263.62 | 7,715.36 |
| May ‘08 | 309,668.66 | 47,195.33 | 5,829.51 |
| June ‘08 | 360,646.80 | 47,263.15 | 4,284.71 |
| July ‘08 | 464,267.90 | 68,279.60 | 4,302.99 |
| August ‘08 | 369,824.88 | 55,103.97 | 3,742.08 |
The total turnover of the three national commodity exchanges, reflecting over 95 per cent of the country’s trade value, jumped to Rs 4,28,670.93 crore in comparison with Rs 2,95,472.70 crore in August 2007 and Rs 536,850.49 crore in July 2008.
The NCDEX remained the biggest loser, with turnover declining 18 per cent from the same month last year and 19.3 per cent from July this year. The FMC’s suspension on some highly-traded agricultural commodities have hit the overall volume on the platform.
On the MCX, the total value of trade jumped 64 per cent y-o-y while the turnover fell 20 per cent from the previous month. The NMCE witnessed 34.5 per cent growth y-o-y and 13 per cent fall in monthly turnover during August. Traders feel a number of global and regional commodities fell to their respective record lows and hence, the value of commodities declined in August. Additionally, the government’s continuous efforts to tame rising inflation has also started affecting the commodity prices.
Following global cues, a number of global commodities including lead, zinc, nickel and aluminium bottomed out in August on domestic comexes while traders await total convergence of volume from de-listed contracts to the available ones for trading.
The 20 per cent fall in turnover in August from July this year can partly be attributed to the consolidation in brokerage firms as the small broking houses are losing business to bigger ones. Brokerages firms that are spread nationwide, in fact, have witnessed record growth in turnover during August, said Jayant Manglik of Religare Enterprises.
Absolute and fundamental-based knowledge dissemination has become an integral part of commodity broking business, which is lacking in small firms. In contrast, large firms do have enough spread to compile statistics from each centre to present a national-level picture.
