c commodity market
TRANSCRIPT
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Prepared By:
VIJAY KUMAR TRIPATHI(084)
SHUSHALENDR YADAV(072)
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About Commodity Market Commodity markets are markets where raw or primary
products are exchanged.
These products are bought & sold in standardizedcontracts.
The size of this market in INDIA is about 58% of totalcountrys GDP.
Two types of commodities:a) HARD commodities
b) SOFT commodities
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Year by Year Market Growth
0
10
20
30
40
50
60
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Turnover(Rs. In Lakh corer)
Turnover(Rs. In Lakhcorer)
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List Of Players NSEL (National Spot Exchange Limited)
ICEL (Indian Commodity Exchange Limited)
MCX (Multi Commodity Exchange)
NCDEX (National Commodity & DerivativesExchange Limited)
NMCE (National Multi Commodity Exchange) NBOT (National Board Of Trade)
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Major Players Of Indian Market MCX (Multi Commodity Exchange)
NCDEX(NationalCommodityDerivativesExchange Limited)
NMCE (National Multi Commodity
Exchange)NBOT (National Board Of Trade)
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MCX
Multi Commodity Exchange
MCX India Ltd. is a state-of-the-art electronic
commodity features exchange. It offers trading of precious metals, agricultural
products, metals & energy.
MCX is top in the exchange related to gold & silver
and 2nd in natural gases across the world.
It holds the 85% market share of overall commoditymarket of India.
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ANNUAL TURNOVER GRAPH OF( MCX )
0
10
20
30
40
50
60
Turn 0ver (Rs. in lakh corer)
Turn 0ver (Rs. in lakhcrore)
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NCDEX(National CommodityDerivatives Exchange Ltd.)
NCDEX is regulated by Forward Market Commission
which is subjected to various laws, acts & legislations. CRISAL,IFFCO,LIC,NABARD,NSE,PNB,ICICI, Jaypee
group are the major share holders.
Energy, Industrial Metals, Rubber, Precious Metals,
Agri-Commodities. It facilitates trading in 45 commodities.
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ANNUAL TURNOVER GRAPH OF (NCDEX)
0
2
4
6
8
10
12
2004-052005-062006-072007-082008-09 2009-10 2010-11
Turnover (Rs .in lakh corer)
Turnover (Rs .in lakhcorer)
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NMCE(National Multi Commodity Exchange)
NMCE is the first online, demutualised, multi-commodity exchange of country.
It offers trading in plantation, spices, food grains,non-ferrous metals ,oil seeds.
NMCE was established in 1953 under the ministry ofconsumer affairs and public distributions.
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ANNUAL TURNOVER GRAPH OF (NMCE)
0
0.5
1
1.5
2
2.5
Turnover (Rs.in lakh corer)
Turnover (Rs.in lakh corer)
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NBOT
(National Board Of Trade)
NBOT is one of the fastest growing commodityexchange established in 1999.
Offers services in agriculture, plastics, energy.
NBOT is also regulated by Forward Market
Commission.
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ANNUAL TURNOVER OF (NBOT)
0
0.10.2
0.3
0.4
0.5
0.6
0.7
Turnover (Rs.in lakh corer)
Turnover (Rs.in lakhcorer)
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MARKET SHARES OF EACH INDIVISUAL COMPANY
MCX74%
NCDEX
20%
NMCE3%
NBOT1%
OTHER2%
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Analysis of Indian Market The commodity market in India is categorised in
oligopolistic market.
The commodities deals with almost same type ofproducts & services which are homogenous products.
As the product is homogenous we can term themarket as Pure Oligopoly.
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Characteristics Of OLIGOPOLYCharacteristics of OLIGOPOLY are:-
Few Large Sellers.
Interdependence.
Economies Of scale.
Relatively high entry barrier.
Homogeneous or differentiated product.Price maker ,but still mutually interdependent.
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Commodity Market Being An
Oligopoly1. Few Sellers:- There are few service providers in the
market who deals with customers. In India there areonly 4 major players in the Indian Commoditymarket.
2. Interdependence:- Each commodity in IndianCommodity Market is free to take their own decisionbecause in this their price or their product decide thefortune of the rivals or their competitors.
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Commodity Market Being An
Oligopoly3. Group Behaviour:- Members of the group may agree to
form combination to promote their commoninterest.
4. Selling Cost:- the purpose of this is to gain greatershare of market to maximize profit.so,various firmsincur enough expenditure on promotion.
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