InvestorQ : What is the NCDEX Agri Index and how will it be useful when launched?
NISHA Nayak made post

What is the NCDEX Agri Index and how will it be useful when launched?

Answer
user profile image
4 months ago


NCDEX will launch futures contracts on NCDEX Agridex, which will be available for trading from the coming week. This will be the first agri related index that will be traded in the commodity segment. The NCDEX Agridex futures contracts expiring in Jun-20, Jul-20, Sep-20 and Dec-20 will be available for trading from May 26. The Agridex will be a consolidated index of agri commodities including soya bean, guar seed, castor seed, channa, coriander, cotton seed oil cake, guar gum, jeera, RM seed and soya oil. The idea of Agridex is to provide investors one more tool for trading and risk management. Since no single commodity dominates the index, the traders are not vulnerable to the price vagaries of a single commodity. In fact, after the fiasco that commodity markets have seen in Guar Gum in the past and in crude oil recently, there is a proposal to allow retail investors in commodity markets to only trade in indices rather than individual commodities. It has low correlation with other asset classes ensures diversification.