Andhra Pradesh - Vijayawada   

Online trading volume reaches Rs. 300 cr. a day

G. Ravikiran

The volumes have particularly increased in the trading of pulses, crude oil and bullion.

VIJAYAWADA: A trade hub in the coastal Andhra, the city is witnessing a steady rise in investments through online trading platforms that have come up over the last eight years. Starting from nowhere in 1998, the trading through seven to eight players has reached nearly Rs. 300 crores a day now. The business is expected to increase much more in the coming years, given the general investment climate.

The online trading in commodities has picked up momentum in the last one year and the volume has reached Rs. 300 crores. Of this, business in the commodities comes to Rs. 100 crores. The remaining Rs. 200 crores is done in equity.

Three trading companies, which are active in commodities segment, have gained a foothold in the investor base. The volumes have particularly increased in the trading of pulses, crude oil and bullion.

Fears expressed

The Vijayawada Chamber of Commerce & Industry has welcomed the online trading, but it has expressed fears over the commercialisation of commodities trading. Chamber president Gaddam Subba Rao says that the prices of black gram and other pulses have increased significantly and this is not a healthy trend as far as the interests of the general public are concerned.

Of the Rs. 100 crores turnover a day in commodities, 60 to 70 per cent comes from bullion trading. While Optimus Trading Company does a business of Rs. 50 crores to Rs. 60 crores a day, Shirdi Commodities and Steel City Commodities are trading from Rs. 40 crores to Rs. 60 crores a day.

Awareness programme

Optimus Managing Director Nalluri Kesavardhan says that awareness programmes will be conducted to educate investors on the nuances and risk factors involved in online trading. He says that quite a good number of investors are showing interest and the response is particularly good with regard to bullion. Since the trading becomes volatile many times, the company is ensuring that investors are told about risk factors before putting in their money.

Karvy local manager C. Chalapathi Rao points out that more people are feeling comfortable in the online platforms now when compared to the past few years. Instead of coming through brokers, the people are using the net-based facility effectively. Mr. Rao says that online trading in equity is also picking up. The city contributes 0.3 per cent of the total business in the country as per the data of National Stock Exchange (NSE).

Black gram dearer

G. Subba Rao, president of Krishna & Guntur Districts Pulses Exports Merchants Welfare Association, says that the online trading in commodities has had considerable impact on the prices of pulses. The price of black gram is Rs. 3,450 per 100 kg now as against Rs. 2,000 during this time last year.

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