List of Commodities Articles

In India, the Commodities Market is fairly untapped and underdeveloped. Owing to the risk involved and the cyclical nature of commodities, investors refrain from venturing into this segment.

India’s rapid economic growth has fueled an insatiable demand for oil and petroleum products as the world’s third largest oil consumer on the side of the US and China. India’s energy needs are met through a combination of domestic production and imports. This article analyses the crucial role played by upstream and downstream oil companies in satisfying India’s oil appetite today and powering future growth. […]

The stock market is a preferable choice for most investors. However, there is a completely different asset class that knowledgeable investors prefer to trade and earn hefty profits: commodity trading.

Let us look at the top commodities in terms of volumes and value. Which are the best commodities to trade in India and the top commodities in India for trading in futures.

One of the most interesting things to understand is how commodity market works. When we talk of the working of commodity market, we must understand that there are two distinct markets viz. the spot market and the derivatives market.

Diversification is the ultimate goal of any investor based on specific risk tolerating asset classes. Among numerous investment avenues, almost every risk-allocated portfolio has investments in commodities as they have an inverse relationship with equities and bonds.

You can buy commodities in the spot market as well as the futures market. For example, you can either buy gold in the spot market and take delivery, or you can buy gold in the futures market and decide about the delivery before expiry.

How do you invest in commodities? Can you really invest in commodities in commodities in the first place?

One of the key difference between equity and commodity is that one is more hedge or underlying driven and the other is more of trade driven.

The last decade has witnessed a boom in commodity trading. The ease of this form of trading has also improved by leaps and bounds. Investors are not only viewing commodities as hedging instruments but also as a tool to assist in diversification. Let’s understand commodities, their trading, and the boons and banes.

CTT shall be levied on non-agricultural commodities futures contracts at the same rate as on equity futures that is at 0.01% of the price of the trade