The Multi Commodity Exchange (MCX) has raised the metal and energy weightage of its composite commodity futures index "" MCX-Comdex "" from 33.33 per cent to 40 per cent. However, the weightage of agri commodities has been reduced from 33.33 per cent to 20 per cent. | |
| In order to synchronise the index with changing economic dynamics and increased trading activities on the exchange, the Index Maintenance Committee that comprises senior officials from the Indian Statistical Institute (ISI), the Credit Analysis & Research and the MCX decided to revamp the composition and weights of the country's first real-time composite commodity futures index. |
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| An MCX press release said that some changes were also being made in the group formation, especially in agri-Index, where the commodities generating higher volume have been incorporated while banned or low-volume commodities have been spared. |
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| Though index trading is not permitted on the commodity exchange, the movement in the index has been proved as a barometer for speculators. |
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| Before the changes, the Comdex was composed of wheat, urad, soya oil, rubber, guarseed, kapaskhali in agri; gold, silver, copper in metals; and crude oil in energy segment. Now, with the modification, agri-index comprises refined soy oil, mentha oil, potato, kapaskhalli, cardamom, chana and guarseed while the horizon of metal index has been widened with the inclusion of aluminium, nickel and zinc. Energy-index, however, remains unchanged with crude oil and natural gas. |
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| The index is calculated and displayed on a real-time basis on MCX Trader Work Stations and at various other display centres. |
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| "With its component weightages being adjusted to reflect their physical market shares, Comdex, with its underlying futures prices of commodities, may function as the augury of future price trends. It can thereby provide enough leeway for the country's economic managers to take appropriate corrective actions, if not in advance at least on time," the release said. |
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| A precise relationship, if established between balancesheet parameters and Comdex, will help corporates, with extensive exposure to component commodities, taking advance remedial measures while charting their growth path and adding value for investors. |
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