Now Reading: India gold derivatives market tops Rs 2.2 lakh crore daily turnover
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India gold derivatives market tops Rs 2.2 lakh crore daily turnover
India gold derivatives market tops Rs 2.2 lakh crore daily turnover
India's gold derivatives market has crossed Rs 2.2 lakh crore in average daily turnover, according to a report titled Gold Derivatives - Deepening the Market and the Road Ahead in India. The…
India's gold derivatives market has crossed Rs 2.2 lakh crore in average daily turnover, according to a report titled Gold Derivatives – Deepening the Market and the Road Ahead in India. The market also recorded average daily open interest of 43 tonnes, indicating sustained participation. Physical gold deliveries through exchanges since 2003 stand at around 175 tonnes.
Gold options drove recent activity, with average daily notional turnover of Rs 1.94 lakh crore in FY2025-26, compared with Rs 28,484 crore for futures. Average daily options volume reached 156 tonnes, against 23 tonnes for futures. The report highlights that the market helps importers, jewellers and refiners hedge against price fluctuations.
The next phase requires deeper liquidity and wider institutional participation. Restrictions remain on banks and foreign portfolio investors in gold futures and options, though access has expanded to mutual funds, alternative investment funds and portfolio managers.
Indian Opinion Analysis
The report's figures show options now dominate gold derivatives trading by a wide margin, a shift that gives smaller jewellers a cheaper tool to hedge price risk compared with futures. India's gold demand of 563 tonnes in 2024 and household holdings of an estimated 30,000 tonnes underline the scale of the underlying market. The next milestone will be whether the regulator allows banks and FPIs to participate in gold futures and options, which would deepen liquidity further. The development of India Good Delivery standards also aims to reduce reliance on London benchmarks for domestic pricing.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above.
