GUAREX and SOYDEX are India's first return-based agricultural futures index in agri-commodities
The National Commodity and Derivatives Exchange (NCDEX) on Monday said it has launched two sectoral indices — GUAREX and SOYDEX.
"In the indices segment, we launched India's first return-based agricultural futures index in agri-commodities. GUAREX and SOYDEX are also the country's first sectoral indices in the agri-commodities space," NCDEX Managing Director and Chief Executive Officer Arun Raste said in a statement.
GUAREX is a return-based index tracking the price movement in the futures contracts of its underlying, that is guar seed and guar gum refined splits on a real-time basis.
Similarly, SOYDEX will follow the price changes in futures contracts of soybean and refined soy oil.
Initially, both the indices will be available on the agri-commodity exchange's website and will be representative only to gauge the performance of guar complex and soy complex.
The futures trading in these indices will be launched in due course, NCDEX stated.
The weightage of guar seed and guar gum refined splits in GUAREX stand at 63.43 per cent and 36.57 per cent, respectively. In SOYDEX, soybean and refined soy oil will have the weightage of 67.92 per cent and 32.08 per cent, respectively.
NCDEX Chief Business Officer Kapil Dev said, "I have no doubt that these indices will soon be positioned as benchmarks in their respective areas. GUAREX and SOYDEX will offer a lot of opportunities to value chain participants with respect to trading strategies and risk management exercises."
In May 2020, NCDEX had launched AGRIDEX, a return-based composite index tracking futures price movement in 10 commodities on NCDEX. The index has given over 40 per cent return in its first full year of operations, establishing itself as a benchmark for the commodity market participants.