After the scintillating show in Sensex, it is the turn of commodities market for investors. So, expect the next bull run in commodities sector.
Experts like National Commodity and Derivatives Exchange Managing Director and CEO P H Ravikumar feel that the commodities market will steal the thunder in the coming days.
According to Ravikumar, commodities are a virgin market, but have the potential to grow 50 times more than where it is now.
The next bull run is not in stocks, not in bonds, but in commodities, he said.
The present scenario is like everyone wants to hold a Reliance or an Infosys share but not a commodity Futures contract, but in the near future the investors will turn to commodities market.
The industry players believe the stock market growth has been led by huge inflows from foreign investors, banks and other large investors and the same is needed to propel the commodity market into its next growth orbit.
Investors must realise that Sensex touched 17,000 level because of higher foreign institutional investment (FII) inflows. Unfortunately, FIIs, banks and non-resident Indians are not allowed in commodities market. Without big players, investors cannot see the real depth and action that they have been seeing on Sensex, the Ncdex chairman said.
In 2006-07, volumes grew over 25 per cent to Rs 27,39,340 crore, while BSE and NSE together contributed about Rs 28,00,000 crore. The five-year old commodities market is capable of toppling these figures in the years to come.
