Equity derivatives are functioning till 3.30 for derivatives and cash market. However, commodities traditionally remain open till late, especially for globally refrenciable commodities like bullion, metals and energy. International markets are open round the clock.
In view of Covid-19, government has declared countrywide lockdown
till April 14 and brokers and exchange staff are also finding it difficult to manage to come to office despite no ban on them. In view of this, the Commodity Participants Association of India, an apex body for commodity brokers has represented to the regulator to cut timing for derivatives in line with agri commodities which end at 5 PM.
“As a temporary measure till normalcy is established again it is advisable to cut trading timings to 5 pm,” said Narendra Wadhwa, President, CPAI.
Today, commodity segments of all exchanges were busy covering their short positions in view of uncertainty created after announcement of fresh 21 day closure. On NCDEX, an agri commodity centric derivatives exchange, several commodities were in 4 per cent upper circuit without any fundamentals. This, according to brokers, was because all those who were short were covering short positions. They were worried of market closure.
During lockdown, warehouse, transport and mandis are functioning irregularly and labour is not available. As a result delivering goods on expiry will be difficult and hence, Wadhva suggested that sebi
should merge current month agri commodities contracts with following month expiry contracts. This will provide time and by that time lock down will be over.