Indian commodity futures post first fall in volume
The turnover dropped 13.5 per cent from a year earlier to 5.13 trillion rupees ($97.21 billion) during April 1-15, the commodities market regulator Forward Markets Commission (FMC) said.
Bullion trade in the world's top buyer of gold fell 27.3 per cent to 2.39 trillion rupees, while turnover in agri commodities rose 20 per cent compared with the previous fortnightly rise of 75 per cent, the FMC said.
The confidence of holding positions has declined on apprehensions of banning more agri commodities, said Shikha Mittal, an analyst with Karvy Comtrade.
India allowed futures trading in commodities in 2003 and has 21 commodity bourses, including six operating at the national level. It banned futures trade in guar in late March on allegations of excessive price volatility.
In the last seven years that I have been associated as a participant, this is the first time that I have noticed that rupee has played such a negative role, said Gnanasekar Thiagarajan, director of Commtrendz Research.
Making money in MCX (Multi Commodity Exchange) lately has become very difficult because of the rupee factor, he said.
The rupee plays a vital role in determining the cost of dollar-quoted base and precious metal. The local currency has depreciated 6.2 per cent since February, keeping the gains in metals capped.
Volumes in metals were steady at 1.13 trillion rupees,
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