KNOWING THE MARKET IN INDIA

India and its Market

Today, Commodities market in India is of size of rupees 25,000 crore per day and it is being run in Five major commodities exchanges. The commodities exchange through brokers such as Real Guru provide a real-time electronic trading platform and bring the buyers and the sellers together.

What is Commodity Market?

Commodity market is defined as the market in which trading of precious metals, energy, oil, species and so on.

What are exchange traded commodities?

Exchange traded communities are classified as:

  1. Metal:

Metals like Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel, Tin, Zinc.

  1. Bullion:

Gold, Silver, Silver HNI, Silver M.

  1. Fiber:

Cotton, Jute.

  1. Energy:

Crude oil, Furnace Oil, Natural Gas.

  1. Spices:

Cardamom, Jeera, Pepper, Red Chilli, Turmeric

  1. Plantation:

Arecanut, Cashew Kernel, Coffee (Robusta), Rubber

  1. Pulses:

Chana, Masur, Yellow Peas.

  1. Petrochemicals:

HDPE, Polypropylene (PP), PVC

  1. Oil and Oil Seeds:

Castor Oil, Castor Seed, Crude Palm Oil, Cotton Seed, Refined Sunflower Oil, Rice Bran DOC, Soy Bean, Soy Seeds etc.

  1. Cereals:

Maize, Gaur Seed, Gurchaku, Mentha Oil, Potato etc.

 

In India, people are not generally investment oriented, they usually fear to invest in commodity market but with the COVID-19 Pandemic this notion is changing and in a recent survey it has been found there is an 40 percentage increase in the investment by people in the commodity market, mainly in Gold and Share markets, as the pandemic has shown the importance of two way income.

Benefits of Investing in Commodity Market:

  • Potential Returns
  • Principal Risk
  • Volatility
  • Asset Concentration
  • Potential hedge against inflation
  • Diversification

Right now which commodity will be better for investment?

  1. GOLD:

As per the recent announcement by the Financial Minister in the budget (2021-2022), the import duty on gold is reduced to 7.5 percentage from 12.5 percentage hence, Gold has become cheaper than it was earlier. So, Gold will be better commodity to invest in.

  1. Share Market:

Share market is booming even in the time of COVID-19 hence, it can be a good option for investment as per Real Guru that provide commodity market in India

Many Companies got richer during pandemic like GameStop of USA, Blink etc. Their share skyrocketed during the pandemic.

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