Traders in India have access to diverse opportunities that go beyond equities, such as the exciting prospect of commodity trading in India. From agricultural products to precious metals, energy, and more, commodities trading involves placing trades based on supply and demand, with prices determined and impacted by various economic and geopolitical factors.
In recent years, with the advent of technology, online commodity trading has become increasingly popular in India. With a range of players involved, from traders to speculators, the world of commodity trading is dynamic and constantly evolving
This has made it easier for individuals to trade in commodities and take advantage of market movements. In this article, we will be discussing the 5 most traded commodities in India.
1. Crude Oil
Crude oil is India’s most actively traded commodity, with a whopping 88,97,648 lots traded in January 2023. It is traded on the Multi Commodity Exchange of India Limited (MCX), which is the largest commodity exchange in India and a leading platform for crude oil trading.
The average daily turnover for crude oil was around ₹5,83,27,900+, making it the most valuable commodity in terms of turnover as well. Crude oil is a highly sought-after commodity as it is a primary energy source, with demand coming from various industries such as transportation, manufacturing, and construction.
2. Natural Gas
Natural gas is one of the most traded commodities in India, with 17,63,127 lots traded in January 2023. The average daily turnover for natural gas was ₹63,08,100+.
Natural gas is used in various industries, such as electricity generation, heating, and cooking. It is also used as fuel for vehicles, making it an important commodity for the transportation sector.
Gold is a popular commodity in India and is often considered a safe haven asset. In January 2023, 9,13,612 lots of gold were traded, with an average daily turnover of ₹1,01,70,000+ lakhs.
Gold is primarily used for jewellery, investment, and as a reserve asset for central banks. The demand for gold in India is high due to cultural and religious reasons, as well as its reputation as a store of value.
Silver is another precious metal that is actively traded in India. In January 2023, 57,47,862 lots of silver were traded, with an average daily turnover of ₹1,35,85,600 lakhs+.
Silver is used in a variety of industries, like electronics, photography, and jewellery. It is also considered a safe haven asset and is often purchased as a hedge against inflation or economic uncertainty.
Aluminium is a lightweight metal used in various industries, including transportation, construction, and packaging. In January 2023, 1,23,693 lots of aluminium were traded, with an average daily turnover of ₹13,39,000 lakhs+.
Aluminium is highly valued for its strength, durability, and corrosion resistance, making it a popular material for building and manufacturing.
In conclusion, commodity trading in India is a popular and lucrative market, with several commodities actively traded online. These commodities are highly valued for their various industrial and commercial applications, and various factors, including supply and demand, geopolitical events, and economic indicators, influence their prices.
With the rise of online commodity trading, investors in India can easily access these commodities and profit from their price movements.