| India is one of the largest consumers—and producers—of several commodities, particularly precious metals and agri-based ones. It is thus one of the major Asian economies to influence global price movements. Investors, traders, hedgers and fund houses have always dabbled in commodities, either to expand their trading portfolio or to use it as a hedge against inflation.
The dynamics of trading at India’s commodity markets have changed in recent years. Average daily trading volumes have fallen from a peak of about Rs 75,000 crore in late 2012 to about Rs 25,000 crore today. With deterrents like a commodity transaction tax and weak global demand, expect challenging times this year...............................................Full Article: Source
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