Indian Commodity Markets: Spot Market Leads Price Discovery Revolution!
The article analyzes price discovery in Indian commodity markets using data from 2006 to 2013. The researchers found that prices in spot and futures markets are linked, with some commodities showing bidirectional information flow. In agriculture, information flows both ways, while in metal and energy markets, it flows from futures to spot markets. Overall, price discovery in a combined index happens from spot to futures markets.