Guar seed, guar gum refined splits to have a weightage of 63.43 per cent and 36.57 per cent in GUAREX
National Commodity and Derivatives Exchange, India’s leading commodity exchange has recently launched the futures contract on NCDEX GUAREX, India’s first sectoral index in the agri-commodities basket.
NCDEX GUAREX is a price based index tracking the price movement in the futures contracts of its underlying i.e. Guar Seed and Guar Gum Refined Splits on a real-time basis. The weightage of Guar Seed and Guar Gum Refined Splits in the index will be 63.43 per cent and 36.57 per cent, respectively.
“I take pride in announcing the launch of NCDEX GUAREX futures – India’s first sectoral agri-index futures contract. I am sure the contract will garner interest from all sets of participants, including the physical market participants” said Arun Raste, MD and CEO, NCDEX.
The Exchange had launched the indicative or spot contracts for NCDEX GUAREX on July 5, 2021, disseminating the real-time values on its website. GUAREX futures is a cash-settled contract and encompasses an entire sector within one product. Initially, NCDEX GUAREX futures contracts expiring in September 2021 and October 2021 will be made available for trading.
“NCDEX GUAREX will soon be able to establish itself as a benchmark for the Guar Complex, both in the domestic and international markets, making it a value proposition for Eligible Foreign Entities, to hedge their price risk on Indian bourses,” Arun Raste added.
“GUAREX Futures is a price-based index and hence has immense potential while adopting different trade strategies such as arbitrage and calendar spreads. A cash-settled product that is easy to trade will not only appeal to retail participants but will also reckon with the requirements of the institutional players like mutual funds,” said Kapil Dev, Chief Business Officer, NCDEX.
