Markets

Kindling students’ interest in commodity trading

Tejaswi Marthi Vijayawada | Updated on November 25, 2019

Shrikant Koundinya, Assistant Vice-President, Multi Commodity Exchange (MCX), addresses a seminar at the SRK Institute of Technology in Vijayawada on Monday   -  V RAJU

Post their lunch break, students were seen rushing into the auditorium, books in hand, a few giggling and a few discussing the classes of the day, whilst preparing for a one-day seminar called ‘Commodity Talk.’

“I am excited at the prospect of gaining knowledge from this seminar on commodity markets and their exchange mechanisms which can be useful for my placement,” said a student pursuing his final year of MBA in finance.

The Hindu BusinessLine Club, in association with the Multi Commodity Exchange, conducted ‘Commodity Talk’ to enlighten students about commodity stocks and exchanges.

Speaking at the event, M Ekambaram, Principal, SRK Institute of Technology, said students should make the best use of this opportunity as it would benefit them in the long run.

“Unlike every other market, people can invest in the commodity market with much more ease. Use this opportunity to know about the nuances of commodity stock exchange as it might help you not only for your placements but also in your future,” he said.

Shrikant Koundinya, Assistant Vice-President of MCX, gave a detailed explanation about the way commodity exchange and stocks work between buyers and the sellers.

Why dollar matters

“We are all surrounded by commodities every day as it is an essential part of our lives. One must learn how companies make use of these commodities,” said Koundinya, adding that the commodity market revolved around four major segments, namely, bullion, base metals, energy and agricultural products.

He explained why it was important to understand the importance of the US dollar and to track it constantly.

“85 per cent of the commodity trade happens in dollars. Hence, it is essential for all to memorise the exchange rate of dollar vis-a-vis the Indian rupee,” he said, pointing out that a change in the purchasing power of the currency is directly linked to the price of the raw materials to be bought.

He also highlighted the risks involved in the commodity markets, the differences between stock and commodity markets and rules of commodity exchange, via presentations, to enable the students to grasp the concepts easily.

Test your understanding

Towards the end of the seminar, the Assistant VP of MCX urged the students to participate in the quiz, ‘Comquest,’ conducted by the company, which would kindle interest in learning about commodity markets.

Students also noted down their doubts and queries, which would later be addressed by their faculty members.

The students received a certificate for participating in the interactive seminar.

Published on November 25, 2019

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