NCDEX to launch indices soon

In a bid to popularise commodity future trading, the National Commodity and Derivatives Exchange Ltd (NCDEX) is planning to float indices on the lines of Nifty soon and launch futures contract in energy.

"We are planning to float commodity index on the lines of National Stock Exchange's (NSE) 50-stock index Nifty in order to popularise commodity futures along with the stock exchanges of the country," NCDEX managing director and chief executive officer P H Ravikumar told PTI here today.

NCDEX is working out on making an index with select commodities which would capture the mood of commodity future markets as it is growing equally strong like stock exchanges, Ravikumar said.

"NCDEX is just taking the model of NSE, which is one of our promoters. This proposed index is not for trading but for popularising commodity futures. This is expected to be launched in two to three months," he said.

The NCDEX chief also said the exchange is planning to launch future contracts in energy including natural gas, crude petroleum and electricity.

"The exchange has already made necessary arrangements with GAIL and Gujarat State Petroleum Corporation Ltd (GSPCL) for launching futures on natural gas shortly," he said.

Ravikumar said the exchange is in dialogue with sector participants of electricity and it is expected to kick start electricity futures following the natural gas launch.

"NCDEX will also look into the possibilities realising future contracts in crude petroleum in later stage," he added.