CHENNAI: Commodity trading in Chennai is slowly picking up and new entrants have a bright future, according to an expert. Speaking to reporters after inauguration of Almighty Investment Solutions here on Wednesday, SRM Muthuramalingam, a former banker and managing director of the firm, said that the commodities market is still in a nascent stage but is gradually picking up taking a cue from global markets. “Majority of the traders lack awareness on commodity trading. They are more focused on equity trading,” he said.Interestingly, after equity trading, commodity trading is going to be the next big thing for investors. Globally, the commodity trade market is about three times the size of equities trade market. The firm, which was inaugurated by state BJP vice-president H Raja, is planning to have about 30 franchisees across the state within two to three weeks. “We will be providing investment solutions to our clients but our main focus will be commodity trading,” he said.Muthuramalingam also said that while he backed clamp on food products in commodity trading, he also reasoned that there is no guarantee that prices of essential commodities will come down. He said commodity trading is catching up in the city and a top city-based firm in Nungambakkam is having a turnover of `600 crore a day. “Chennai is an area where we have vast scope. We have to create awareness about commodity trading here. We have to eliminate the fear psychosis over commodity trading,” he said.The firm, which has invested `1 crore, is planning to have 10 franchisees in the city with each having about 50 clients. “We are also planning to have a franchisee in the 234 constituencies of the state,” said Muthuramalingam.
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