Chapter 10: NISM-XV Exam Prep
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Day 49: NISM-XV Module 8 — Commodities, Currency & REITs
The other asset classes you need to know for a complete market picture
2 min read
📖 Gold Is More Than Jewellery!
India is the world's second-largest gold consumer. But gold doesn't just sit in lockers and necklaces — it trades on the MCX (Multi Commodity Exchange) every single day.
Commodities, currencies, REITs, InvITs — all SEBI-regulated, all part of the investment universe, and all part of the NISM-XV syllabus.
Let's round out the picture. 🌍
India is the world's second-largest gold consumer. But gold doesn't just sit in lockers and necklaces — it trades on the MCX (Multi Commodity Exchange) every single day.
Commodities, currencies, REITs, InvITs — all SEBI-regulated, all part of the investment universe, and all part of the NISM-XV syllabus.
Let's round out the picture. 🌍
Commodity Markets
MCX = Multi Commodity Exchange (Mumbai)
Metals: Gold, Silver, Copper, Aluminium, Zinc
Energy: Crude Oil, Natural Gas
Agricultural: Cotton, Mentha Oil
NCDEX = National Commodity & Derivatives Exchange
Agricultural focus: Wheat, Soybean, Mustard, Turmeric, Chana Dal
Both regulated by SEBI (FMC merged into SEBI in 2015).
Metals: Gold, Silver, Copper, Aluminium, Zinc
Energy: Crude Oil, Natural Gas
Agricultural: Cotton, Mentha Oil
NCDEX = National Commodity & Derivatives Exchange
Agricultural focus: Wheat, Soybean, Mustard, Turmeric, Chana Dal
Both regulated by SEBI (FMC merged into SEBI in 2015).
Currency Markets
4 currency pairs traded on NSE/BSE:
USD/INR (most liquid) · EUR/INR · GBP/INR · JPY/INR
Used by: Import/export companies to hedge currency risk. Also traded by speculators.
One lot = $1,000 for USD/INR contracts.
Extended trading hours: 9 AM – 5 PM (unlike equity market).
USD/INR (most liquid) · EUR/INR · GBP/INR · JPY/INR
Used by: Import/export companies to hedge currency risk. Also traded by speculators.
One lot = $1,000 for USD/INR contracts.
Extended trading hours: 9 AM – 5 PM (unlike equity market).
Corporate Actions — Must Know for Exam!
| Action | Effect on Price | Effect on Shareholder |
|---|---|---|
| Dividend | Falls by dividend amount on ex-date | Cash received |
| Stock Split (2:1) | Halves (proportionally) | Double shares, same total value |
| Bonus Issue (1:1) | Halves (proportionally) | Free additional shares |
| Rights Issue | Slight dilution risk | Right to buy at discount |
| Buyback | Usually rises (bullish signal) | Fewer shares, each more valuable |
REITs & InvITs — New Age Investments
REIT = Real Estate Investment Trust
Invest in commercial real estate (offices, malls, warehouses). Minimum investment ~₹10,000–15,000. Quarterly distributions from rental income. SEBI regulated.
India examples: Embassy REIT, Mindspace REIT, Brookfield India REIT.
InvIT = Infrastructure Investment Trust
Invest in infrastructure assets: roads, power lines, gas pipelines. Regular cash distributions.
India examples: IRB InvIT, PowerGrid InvIT, IndiGrid InvIT.
Invest in commercial real estate (offices, malls, warehouses). Minimum investment ~₹10,000–15,000. Quarterly distributions from rental income. SEBI regulated.
India examples: Embassy REIT, Mindspace REIT, Brookfield India REIT.
InvIT = Infrastructure Investment Trust
Invest in infrastructure assets: roads, power lines, gas pipelines. Regular cash distributions.
India examples: IRB InvIT, PowerGrid InvIT, IndiGrid InvIT.
🎉 India's Commodity Fun Fact!
Hapur (UP) is India's largest gur (jaggery) market — prices there influence MCX commodity contracts! Rampur's mentha oil is globally traded on MCX. The humble groundnut from Gujarat's Saurashtra region has an actively traded futures contract. India's commodity market connects the farm to the financial market. 🌾
Hapur (UP) is India's largest gur (jaggery) market — prices there influence MCX commodity contracts! Rampur's mentha oil is globally traded on MCX. The humble groundnut from Gujarat's Saurashtra region has an actively traded futures contract. India's commodity market connects the farm to the financial market. 🌾
🎯 Takeaway:
MCX = metals + energy + agri. NCDEX = agri focus. 4 currency pairs on NSE. Corporate actions: dividend, split, bonus, rights, buyback — memorise all price effects! REITs = commercial property. InvITs = infrastructure assets. Tomorrow: Mock Exam practice!
MCX = metals + energy + agri. NCDEX = agri focus. 4 currency pairs on NSE. Corporate actions: dividend, split, bonus, rights, buyback — memorise all price effects! REITs = commercial property. InvITs = infrastructure assets. Tomorrow: Mock Exam practice!