The daily trade of commodities futures market is expected to rise by another Rs 5000 crores from the Rs 15000 crores being traded currently.
With increasing interest from investors, the basket of 120 commodities currently being traded is likely to touch 250 by 2007-08.
The Assocham-NMCE paper says that commodities as an asset class is increasingly being used to diversify asset portfolios by investors. Commodities offer a classic hedge against inflation.
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