Commodity trading has always been influenced by global supply-demand dynamics, geopolitical events, and currency movements. In 2025, Artificial Intelligence (AI) is emerging as a game-changer in the Indian commodity markets—be it gold, silver, crude oil, or agri-commodities.
From forecasting prices to executing trades in milliseconds, AI-driven systems are helping both retail and institutional traders make smarter, faster, and more informed decisions.
✅ Faster & more accurate price forecasts
✅ Data-driven risk management strategies
✅ Removal of emotional trading biases
✅ Ability to process global data at scale
✅ Democratization of advanced tools for retail traders
⚠️ Overreliance on models can lead to risks in black swan events
⚠️ High infrastructure costs for HFT setups
⚠️ SEBI regulations require compliance in algo-trading
These insights help both professional traders and beginners position themselves strategically.
While global hedge funds use expensive AI tools, Swastika Investmart empowers Indian investors with:
✅ Start AI-Driven Commodity Trading with Swastika
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Q1. Can AI predict commodity prices with 100% accuracy?
No, AI improves probabilities but markets remain influenced by global shocks.
Q2. Is AI-based commodity trading allowed in India?
Yes, SEBI permits algo-trading under regulatory frameworks, ensuring transparency.
Q3. Can beginners use AI in commodity trading?
Yes, through AI-powered research platforms provided by brokers like Swastika.
Q4. Which commodities benefit most from AI analysis?
Gold, crude oil, silver, and agricultural products due to their volatility and global impact.
AI is reshaping commodity trading in India, offering traders predictive insights, automation, and improved efficiency. While risks remain, AI-driven trading is creating opportunities for both seasoned investors and retail traders.
With Swastika Investmart’s AI-powered research and SEBI-compliant platforms, Indian traders can embrace the future of commodity trading with confidence and precision.
Are you ready to dive into the exciting world of stock market investing? According to SEBI requirements, all stock market trades must be placed through a Member of the Exchange - a stock brokerage company. A brokerage house, often known as a broker, is an institution that acts as an intermediary in transactions involving securities such as stocks, mutual funds, ETFs, and others. A top stockbroker will assist you with transactions, provide investment advice, tax-saving ideas, retirement planning guidance, and asset management services. They will walk you through all of the steps required to invest in the stock market.
Swastika Investmart is one of India's major full-service stock brokerage firms, serving individual and institutional clients across all capital market categories. Swastika has a strong research staff, a powerful digital trading platform Justrade 2.0, and a vast branch network and franchisee base that helps it to conduct thousands of secondary market deals every day.
Swastika offers a wide range of services, including mutual funds, a wide range of choices for investing in stocks, and derivatives (stocks, commodities, and currencies). Additionally, it provides investment banking services, funding for margin trades, and third-party products like insurance.
Swastika has around 3 lakh accounts for customers and 80+ branches located all over India. It is a SEBI-registered entity that is registered with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). We are also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
Swastika Investmart offers clients the choice to invest in a wide range of securities, including stocks, bonds, ETFs, futures, options, and real estate investment trusts. Even if you simply want to trade stocks for the time being, you should still think about the prospect of trading other assets in the future. Your brokerage business should be able to give you information on all of these options.
As a stock market beginner, it might be difficult for you to know which stocks to buy or sell. An online stockbroker that provides Portfolio Management Services with expert assistance is the perfect solution to your problems. Swastika Investmart offers comprehensive portfolio management to help you make investment decisions and achieve good returns in the stock market.
A top stockbroker in India should provide a wide range of recommendations, including investing and diversification suggestions, retirement plans, and tax-saving strategies. Swastika Investmart offers valuable research advice, making it easier for you to trade in the stock market with confidence. The more time you are ready to devote to research, the easier it will be for you to make decisions.
Even experienced investors require assistance at times, so it is critical to select a stockbroker that provides excellent customer support. Swastika Investmart's support team is available 24/7, ensuring that you get help whenever you need it. The helpdesk picks your call in just three rings, making Swastika stand out among the best stockbrokers in India.
If you prefer physical locations for your trading activities, you should select a stockbroking firm with a large number of branches throughout India. Swastika Investmart has over 80 branches across India, making it one of the best stockbrokers with a strong physical presence.
Swastika Investmart provides you with a personalized relationship manager to guide you through your trades. This personal touch ensures that you have dedicated support for your investment needs.
Swastika Investmart offers the Swastika App , providing the best trading experience with cutting-edge technology. This Indian stock market trading app is suitable for both traders and newbies, and it is simple to use and free.
Choosing a stockbroker is a big decision. With Swastika Investmart, you get a comprehensive package: a broad range of investment options, expert advice, exceptional customer service, and a user-friendly platform. If you're looking for a reliable partner to help you achieve your financial goals, Swastika Investmart is definitely worth considering.
Market capitalization, or market cap, is a key indicator of a company's size and value in the stock market. It is calculated by multiplying the current share price by the total number of outstanding shares. In India, several companies stand out due to their substantial market caps, showing their significant influence and stability in the market. The Indian stock market is a powerhouse in Asia, and several domestic companies have grown into global giants.
Here, we look at the top 10 companies in India by market capitalization as on 29 june 2024
Leading the pack is Reliance Industries, a conglomerate with fingers in many pies Led by Mukesh Ambani, is the largest company in India by market capitalization. The conglomerate operates across various sectors including petrochemicals, refining, oil, and gas exploration. It has also made significant inroads into telecommunications and retail.
Ever wondered how businesses manage their IT needs? Tata Consultancy Services (TCS) is a leading IT services, business solutions, and consulting firm headquartered in Mumbai. It ranks among the global leaders in the IT services segment, providing a wide range of technology and digital transformation services. It provides solutions for businesses of all sizes, making it a valuable partner in today's digital age.
HDFC Bank is a household name in India, known for its stability and reliability in the financial sector. They offer a wide range of banking products and services, making them a one-stop shop for all your financial needs. It is known for its strong customer base and a wide range of banking and financial services. It has consistently demonstrated stability and growth in the financial sector.
Another major private bank in India, ICICI Bank caters to a wide range of customers, offering banking products and financial services. They're known for their innovative approach to banking. They have a significant presence in both retail and corporate banking.
Bharti Airtel is a prominent telecommunications company in 18 countries across Asia and Africa. It offers mobile voice and data services, fixed lines, high-speed broadband, IPTV, DTH, and enterprise services. Bharti Airtel's market valuation indicates its strong network and wide customer base.
SBI, India's largest public sector bank, offers a comprehensive suite of banking products and services. They play a vital role in the financial landscape of the country. They have a vast network of branches and a strong presence across the country.
Another IT powerhouse, Infosys helps businesses navigate the ever-evolving digital landscape.They , offer consulting and next-generation digital services. The company aims to help clients navigate their digital transformation journeys. Infosys recently joined the $100 billion market cap club, reflecting its robust growth and market presence.
Life Insurance Corporation of India (LIC) is India's biggest public insurance company. Besides general insurance, LIC also deals in mutual funds, asset management, exchange trades, and index funds.
Hindustan Unilever, an Indian consumer goods company, is a subsidiary of the British-Dutch company Unilever. Its diverse portfolio includes cleaning agents, water purifiers, and personal care products. The market valuation of Hindustan Unilever reflects its strong brand portfolio and wide consumer base.
ITC is a multi-business conglomerate with a diverse portfolio, including FMCG, hotels, paperboards and packaging, agri-business, and information technology. The market valuation of ITC is a reflection of its strong brand presence and diverse operations.
Source: https://www.forbesindia.com/article/explainers/top-10-companies-india-market-valuation/86307/1
These top 10 companies by market capitalization in India showcase the strength and diversity of the Indian economy. From energy and banking to IT and consumer goods, they represent key sectors driving the country's growth. Their substantial market valuations highlight their stability, innovation, and influence in both domestic and global markets. As India continues its economic expansion, these companies are expected to play a crucial role in shaping the nation's financial and industrial future.
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Derivatives are financial instruments whose value is derived from the performance of an underlying asset, index, or rate. These instruments are essential in financial markets for purposes such as hedging risk, speculating on future price movements, and arbitraging price discrepancies. In India, the derivatives market has seen substantial growth, with the National Stock Exchange (NSE) reporting an average daily turnover of ₹52.8 trillion in FY2022-23. Derivatives can be broadly categorized into two types based on their payoff structure: linear and non-linear derivatives. Let's explore these in simple terms.
Linear derivatives have a straightforward, direct relationship with the price of the underlying asset. Their value changes proportionally with the changes in the underlying asset's price. The two main types of linear derivatives are futures and forwards.
Forward contracts are customized agreements between two parties to buy or sell an asset at a specified future date for a price agreed upon today. These contracts are traded over-the-counter (OTC), meaning they are negotiated directly between the parties involved and not on an exchange.
How They Work: Imagine you and a farmer agree that you will buy 1,000 kg of wheat at ₹25 per kg in six months. This contract is tailor-made to your needs.
Example: If the market price of wheat rises to ₹28 per kg, your forward contract has increased in value because you can buy at the lower price of ₹25.
Use Cases: Forwards are used for the same reasons as futures but offer more flexibility in terms of contract size and settlement dates.
Futures contracts are standardized agreements to buy or sell a specific quantity of an asset at a predetermined price on a specified future date. Unlike forward contracts, futures are traded on organized exchanges.
Equity futures involve buying or selling individual stocks at a future date and at a predetermined price. These contracts are used for speculation and hedging purposes. India's equity futures market is one of the largest in the world, with the NSE's Nifty 50 index futures being highly popular among traders.
Currency futures are contracts that involve the exchange rate of currency pairs such as USD/INR, EUR/INR, and GBP/INR. These contracts help manage currency risk for businesses and enable currency speculation. The USD/INR futures are among the most traded currency futures in the Indian market.
Commodity futures involve contracts for physical goods such as agricultural products (wheat, sugar), metals (gold, silver), and energy products (crude oil, natural gas). India has a robust commodity futures market, with gold and crude oil futures being particularly active.
How They Work: Suppose you agree to buy 100 shares of Reliance Industries in three months at ₹2,000 per share. Regardless of the market price at that time, you will buy them at ₹2,000 per share.
Options are contracts that provide the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before or at the contract's expiration. There are two main types of options: call options and put options.
Options are versatile financial instruments that give traders and investors the right, but not the obligation, to buy or sell an asset at a predetermined price (strike price) within a specified time frame (expiry date). They are widely used in the Indian stock market for various trading and hedging strategies. Let's explore the main types of options and positions available:
Call options give the holder the right to buy an underlying asset at a specified price (strike price) on or before the expiration date.
2. Put Options
Put options give the holder the right to sell an underlying asset at a specified price (strike price) on or before the expiration date.
Traders hold a long position when they purchase a call or put option.
2. Short Position
A trader holds a short position when they sell (write) a call or put option.
Non-linear derivatives refer to financial instruments whose value does not move in a straightforward linear manner with changes in the price of the underlying asset. Unlike linear derivatives such as forwards or futures, where the payoff is directly proportional to the price movement of the underlying asset, non-linear derivatives exhibit more complex payoffs that may include options, swaps, and more specialized structures. Here are some common types of non-linear derivatives:
Swaps are contracts in which two parties agree to exchange cash flows or other financial instruments over a specified period. The most common types of swaps are interest rate swaps, currency swaps, and commodity swaps. India's swap market, though not as large as its Western counterparts, has been growing steadily, with interest rate swaps being particularly prevalent among financial institutions.
Derivatives, including forward contracts, futures contracts, options contracts, and swap contracts, play a crucial role in modern financial markets. They provide tools for hedging risk, speculating on future price movements, and capitalizing on hedging opportunities. Understanding the mechanics, benefits, and risks associated with each type of derivative is essential for anyone looking to engage in derivative trading. In India, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are key players in the derivatives market, offering a wide range of derivative products. As with any financial instrument, thorough research, risk management, and a deep understanding of the underlying asset and market conditions are vital to successful trading in derivatives markets.
The Union Budget of India is the comprehensive financial plan of the government for the fiscal year, outlining its revenue and expenditure projections. Presented annually by the Finance Minister in Parliament, it serves as a blueprint for the country's economic policies and priorities. Beyond financial allocations, the budget addresses key aspects such as taxation, borrowing, and expenditure management, shaping the socio-economic landscape of India. It reflects the government's strategies to stimulate growth, promote development, and address fiscal challenges while aiming to achieve sustainable economic progress. As a critical policy document, the Union Budget influences sectors ranging from agriculture and infrastructure to healthcare and education, impacting the lives of millions across the nation.
The Union Budget 2024-25 is set to be an important event for India, scheduled for presentation on July 23, 2024, by Finance Minister Nirmala Sitharaman. As the first budget of the re-elected government's new term, it carries significant weight and anticipation among various stakeholders, including investors, economists, and the general public.
This budget is the first financial plan of the re-elected government's new term. There is great anticipation about the government's fiscal policies and economic strategies.
Post-election, the political scenario emphasizes the importance of addressing both regional aspirations and national priorities, ensuring a balanced approach to governance and development.
Economic indicators, including robust GST collections and substantial dividends from the Reserve Bank of India (RBI), are expected to strengthen the budgetary framework. These factors provide a solid foundation for improving fiscal health and implementing growth-oriented policies.
In the last ten years, each budget has shown how the government aims to double farmers' incomes and increase money flow directly to them. Budgets have set aside more funds for agriculture, focusing on rural development and improving farming methods.
Initial indications suggest that in FY25, the government will continue focusing on consolidating finances to boost economic growth and control inflation. Meeting the fiscal deficit goal of 4.5% of GDP by FY26 is crucial, requiring careful allocation of resources to sectors such as Minimum Support Price (MSP), food, fertilizers, and LPG subsidies.
Union Budget 2024-25 is expected to align closely with the Modi government's inclusive development agenda, prioritizing initiatives such as:
The railway sector is set to receive increased funding for capital projects, continuing the government's efforts to rejuvenate infrastructure. In the Interim Budget 2024, the railway ministry secured unprecedented financial support, highlighting the government's dedication to improving railway infrastructure.
Expectations of a favorable budget, without negative tax changes, are likely to maintain a positive trend in the stock market. Sectors like FMCG, infrastructure, renewable energy, housing, and railways, which stand to gain from rural sector improvements, are anticipated to see favorable market responses after the budget is announced.
As we await Finance Minister Nirmala Sitharaman's budget speech on July 23, 2024, expectations are focused on the Union Budget reinforcing the core policies of the re-elected government, while steering clear of significant long-term expenses. Robust revenue streams from GST and RBI dividends are set to enhance fiscal flexibility, facilitating targeted investments in rural infrastructure and agriculture. The budget aims to prioritize inclusive growth and revive sectors, though it is not anticipated to introduce major reforms or extensive expenditures in this fiscal cycle. All eyes are on how the government addresses economic challenges and charts a path towards sustainable development and prosperity in India.
Within the financial sector, derivatives trading plays an important role in enabling investors to manage risk, speculate on market movements, and potentially enhance returns. While the term "derivatives" might sound complex, their underlying concepts are crucial for anyone looking to delve into financial markets. This guide aims to explain derivatives trading, explaining its basics, types, strategies, and significance in a simple and engaging manner.
Derivatives are financial contracts whose value is derived from the performance of an underlying asset, index, or interest rate. They serve as instruments for investors to either hedge against risks or speculate on future price movements. Unlike stocks or bonds, which represent ownership or debt, derivatives offer a way to bet on or protect against price fluctuations without owning the underlying asset itself.
Example: Crude Oil Futures
Scenario:
Example: Nifty 50 Call Option
Scenario:
Example: Interest Rate Swap
Scenario:
Example: Currency Forward
Scenario:
While derivatives offer opportunities for profit and risk management, they also carry inherent risks:
Derivatives trading is a powerful tool in the financial markets, providing avenues for risk management, speculation, and market efficiency. Understanding the basics of futures, options, swaps, and forwards equips investors with the knowledge to navigate these instruments effectively. Whether you're a seasoned investor or a newcomer to finance, grasping the fundamentals of derivatives trading is essential for smart decision-making in today's interconnected global economy.
In essence, derivatives are not just financial instruments but essential components of modern market dynamics, shaping how risks are managed and opportunities are seized in the ever-evolving landscape of global finance.
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Nifty and Sensex are India's primary stock market indices, representing the performance of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) respectively. They are crucial for investors to measure the health and trends of the stock market.
Nifty, also known as the Nifty 50, is India's leading index of the National Stock Exchange (NSE). Launched in 1996, it represents the weighted average of the 50 largest and most liquid stocks traded on the NSE, making it a crucial barometer of the Indian capital markets and a reflection of the overall market performance. The Nifty 50 includes companies across various sectors, ensuring a comprehensive view of the market.
In addition to the Nifty 50, the NSE offers several other indices to provide a broader and more detailed understanding of market dynamics:
Recent Developments
The NSE has recently introduced a new index focused on the electric vehicle (EV) sector, reflecting this industry's growing importance and potential. This index aims to capture the performance of companies involved in the manufacturing, development, and supply chain of electric vehicles, highlighting the shift towards sustainable and eco-friendly transportation solutions.
The Nifty 50 index is diversified across various sectors, with the top five sectors contributing significantly to its overall performance. As of the latest data, the sectoral weightage in the Nifty 50 is as follows:
Source - https://scripbox.com/pf/what-is-nifty/
Sensex or Sensitive Index, is India's benchmark index of the Bombay Stock Exchange (BSE). Launched in 1986, it is one of the oldest stock market indices in the country. Sensex comprises 30 well-established and financially sound companies across various sectors. These companies are selected based on their market capitalization and liquidity, representing the overall performance and health of the stock market.
Both indices use free-float market capitalization, considering only the shares available for public trading. The formula involves stock prices and the number of publicly traded shares.
Both indices cover diverse sectors. Nifty includes companies from sectors such as IT, finance, consumer goods, and energy. Sensex also represents a wide array of sectors, providing a holistic view of the market.
Market capitalization is the total market value of a company's outstanding shares. The free-float methodology calculates market cap by excluding promoter and insider holdings, focusing only on shares available for public trading.
The formula for calculating the free float market capitalization is:
Free-Float Market Capitalization = Share Price × Number of Free-Float Shares
To determine the number of free-float shares:
Free-Float Shares = Total Outstanding Shares − Restricted Shares
Restricted shares include those held by promoters, insiders, and other strategic investors that are not available for public trading.
Nifty and Sensex have shown significant growth over the years, reflecting the overall economic development of India. Historical performance data can help investors identify long-term trends and investment opportunities.
These indices are not only indicators of stock market performance but also reflect the economic conditions of the country. They are influenced by various factors, including economic policies, geopolitical events, and global market trends.
Nifty and Sensex are essential tools for anyone involved in the Indian stock market. They provide a snapshot of market trends, economic health, and sectoral performances, helping investors make informed decisions. Understanding these indices can enhance your investment strategies and lead to better financial outcomes.
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