The Multi-Commodity Exchange on Wednesday initiated changes in the composition and weightage of India's first real-time composite commodity futures index - MCX-Comdex.
MCX-Comdex captures diversified sectors encompassing futures contracts drawn on metals, energy and agricultural commodities that are traded on MCX. The index is calculated and displayed on a real-time basis on MCX Trader Work Stations and at various other display centers.
According to a press statement from MCX, the index was initially designed and developed by the Research and Development Department of the commodity exchange in association with Indian Statistical Institute, Kolkata, and launched in June 2005.
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.
But in order to synchronize index with changing economic dynamics and increased trading activities on the exchange, the Index Maintenance Committee, comprising senior ISI and MCX officials has decided to revamp its composition and weights.
In the process, group weights in the composite index have been modified from equal weights of sub-indices to 40 percent each in the case of MCX Metal Index and MCX Energy Index and 20 percent in the case of MCX Agri Index.
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