Bullion trades rule Indian commexes in August


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Bullions trade continued ruling Indian commexes as the recent data provided by the Forward Markets Commission ( FMC ) for the fortnight ended 31st August, 2010 showing a phenomenal 124% growth over the corresponding period last year.

The total value of bullions trades on the commodity exchanges in India during last fortnight in August, 2010 was registered at Rs.1,94,164.41 core, up 123.94% against Rs.86,699.43 crore registered during the same period last year.

Meanwhile, the cumulative growth in the value of bullions trade was seen at 85.83% to Rs.18,69,628.08 crore up from Rs.10,06,107.79 crore.

On Multi Commodity Exchange (MCX), 5th August 2010, 5th October 2010, 4th December 2010, 5th Feb 2011 & 5th April 2011 contracts were traded at the Exchange during the fortnight. The near month contract (i.e. 5th October 2010) was quoted at its highest at Rs.19147.00 per 10 gm on 31.08.2010 and at its lowest at Rs.18540.00 on 18.08.2010 during the fortnight, the FMC data revealed.

During the fortnight, the total value of trade in all varieties was Rs.99,139.339 Cr. The net open position in the near month contract was at its highest at 20217 Kg on 19.08.2010.

On the other hand, the total turnover of 23 commodity bourses, national and regional taken together, was seen at Rs.9,04,686 crore in August, up 49.38% this year, despite low business recorded during the month at the leading exchanges, MCX and NMCE, the FMC stated in its summery.

The turnover of all the bourses amounted to Rs.6,05,610 crore in August last year, the official statement said.

Total business of four national and 19 regional commodity bourses increased significantly last month, although turnover at two leading commodity exchanges MCX and NMCE fell by 8.63% and 51.5% respectively, the analysis of the FMC data showed.

The country's largest commodity bourse, MCX showed decline in the turnover by 8.63% to Rs.4,46,167 crore in August, from Rs.4,88,314 crore in the same period last year.

Meanwhile, National Multi-Commodity Exchange (NMCE), the third biggest commodity bourse in India clocked a turnover of Rs.8,709 crore last month showing a decline of 51.5% from Rs.17,979 crore in the year-ago period.

However, National Commodities & Derivatives Exchange (NCDEX), the country's second biggest agri-commodity bourse saw its turnover rising by 10.7% to Rs.1,03,186 crore from Rs.93,211 crore in August.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities

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