RELATIVE ANALYSIS OF MCX ENERGY AND MCX METAL INDEX

The commodity market in India facilitates multi commodity exchange within and outside the country based on requirements. Multi Commodity Exchange of India Limited is the India's No. 1 commodity exchange has been given the efficient platform for price discovery and risk management across a wide range of segments in India's commodity futures market MCX which has been offering products and services with specifications that perfectly meet the needs of its diverse customer base in a cost effective manner. The innovations in MCX's products and services facilitate the users to hedge price risks in international commodities within the country; thereby enabling they attain efficiency and competitiveness without using the foreign exchange platform. MCX COMDEX is the India's first and only composite commodity futures price index. Other commodity indices developed by the company are MCX Agri, MCX Energy and MCX Metal. The year 2001 is taken as the base period for the purpose of average Index price. The Comdex is periodically evaluated and the weights of its components are revised so that the Comdex reflects the sentiments of the contemporary markets. An attempt is made to study the temporal relationship between the MCX Energy and MCX Metals ,correlation and regression analysis has been done to unveil the relationship between the two .An attempt is made to analyse the relationship between return on price and volume of both the indices. The study also tries to find the auto correlation using Durbin Watson statistics.