Anil Ambani Controlled ICEX Turnover Jumps 5-Fold in Six Months to Rs 5,332 Crore

The Anil Ambani-controlled Indian Commodity Exchange has recorded a five-fold increase in turnover to Rs 5,332 crore in the last six months, largely due to robust trading in diamond contracts.

The largest commodity exchange in diamond futures trading has seen a steady increase in turnover from Rs 1,090 crore logged last September to a high of Rs 5,332 crore in February.

Nearly 85 per cent of the turnover generated in February was attributed to trading in diamond futures contracts, which were launched on the platform in August 2017. Traded only on ICEX, the diamond contract provides a hedging tool for exporters.

Turnover of the diamond futures contract on the exchange increased over 14 times in the last six months to Rs 4,531.50 crore in February from about Rs 318 crore.

Diamond exports rebound

Though exports of cut and polished diamonds from India suffered due to various issues in the industry, they have picked up pace in the last few months, rising 10 per cent to Rs 1.37 lakh crore ($19 billion) in the first 10 months of this fiscal year.

Sanjit Prasad, CEO, ICEX, said several factors, including price volatility, launch of new commodities for trading and change in contract design in the flagship diamond contract contributed to the increase in turnover.

Last month was a record-breaking month for ICEX in terms of daily turnover till date, he added.

Daily turnover on the exchange hit a lifetime high of Rs 418 crore on February 27.

The exchange recorded an average daily volume of Rs 267 crore in February, five times higher than the Rs 55 crore logged last September.

The exchange has handled diamond delivery of 980.45 carats since November 2017, of which 127.67 carats was delivered in March.