commodity market on religare

Upload: pranav-patil

Post on 02-Jun-2018

221 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/10/2019 Commodity Market on religare

    1/56

    G.I.M.S, SATARA M.B.A PROJECT

    CHAPTER I

    INTRODUCTION TO THE STUDY

    1.1 INTRODUCTION TO THE STUDY:Rapid economic growth in recent years with more than 6 percent GDP growth

    higher incomes giving significant purchasing power to over a billion strong

    population, demand for as kinds of goods and services is set to grow rapidly with

    liberalization measures in place, commodity markets in India are likely to make

    an overwhelming impact on the global commodity markets India corporate

    !ntities are now in position to hedge their price risks in the domestic and

    International "ommodity !#changes $nline trading at the three nationwide

    multi%commodity futures e#changes allows domestic hedging, while some of the

    established commodity specific, e#changes are gearing up to meet the needs of

    the e#panding market &here is no doubt that the commodities market in India are

    likely to make an overwhelming impact on the global commodity markets India

    corporate entities are now in a position to hedge their price risks in the domestic

    and international commodity e#changes

    $nline trading at the three nationalized multi commodity futures e#changes

    allows domestic hedging while some of the established commodity specific

    e#changes allows domestic hedging while some of the established commodity

    specific e#changes are gearing up to meet the needs of the e#panding market

    &here is no doubt that the commodities market in India is definitely in for a big

    spent offering enormous opportunities of growth to investors speculators,

    arbitragers and even big corporations in manufacturing sectors

    1.2 RESEARCH DESIGN:

    1.2.1 Management Problem:

    'anagement desires to be ac(uainted with the investors) interest in commodity

    investment on the scale of investors) investment pattern of commodity market

    1.2.2 Reear!" Problem:

    1SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    2/56

    G.I.M.S, SATARA M.B.A PROJECT

    &he statement of research problem is *+ tudy of awareness about "ommodity

    'arket- with special Reference of Geo.it /0P Paribas 1inancial ervices 2td,

    satara

    1.#O$%ECTI&ES O' THE STUDY:

    34 &o study the various commodities traded on commodity market

    54 &o know the awareness of commodity market among investors

    4 &o study the investment preferences of investors for different commodities

    1.( SCOPE O' THE STUDY:

    a) Geogra*"+!al !o*e is limited to the commodity market in satara city,

    'aharashtra state

    b) Con!e*t,al !o*e of the study is limited to introduction, evaluation, and

    current development in the commodity market, characteristics, function, benefits,

    and types of commodity market, scope of the commodity market, and limitations

    of the commodity market

    !) Anal-t+!al !o*e of the study is confided to use statistical tools such as graphs,

    tables, diagrams etc

    1. IMPORTANCE O' THE STUDY:1..1 Im*ortan!e To T"e Reear!"er:

    34 &he Researcher has got knowledge about commodity market

    54 &he Researcher understood that in which commodity investors would like to

    invest more

    4 &he researcher comes to know the awareness of investors regarding different

    commodities

    1..2 Im*ortan!e To T"e Organ+/at+on:

    2SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    3/56

    G.I.M.S, SATARA M.B.A PROJECT

    a4 $rganization can get information regarding criteria of Investor in Investment

    and organization would be able get investors) interest while investing in

    various commodities, also the preferences for different commodities

    1.0 RESEARCH METHODOOGY:1.0.1 Data Re,+re3:

    &he data re(uired for the study is demographic factors like age, income,

    occupation, no of dependents, investment pattern and customers view regarding

    commodity investment and their investment in various commodities re(uired data

    is a collected from following sources

    1.0.2 Data So,r!e:

    Researcher has used the following data sources for the study7

    1) Pr+mar- Data:

    &he re(uired information has been collected with the help of interview

    schedule 1or this purpose researcher has used structured schedule which

    contain a set of (uestions Researcher has taken interview of number of

    investors with the help of schedule

    2) Se!on3ar- Data:

    econdary data has been collected from the References /ooks, Periodicals,

    8npublished sources like Research Paper, 'agazines, &9 and Internet

    1.0.# Intr,ment:&he researcher has collect information from the structured schedule structured

    schedule has preferred to collect the re(uired information &he researcher has to

    analyze the data by using &ables, Graphs Diagrams and other tatistical

    Instruments

    1.0.( Sam*l+ng:+s the population is infinite the researcher has selecte :: samples are selected on

    the basis of 0on Probability "onvenience ampling &echni(ue

    1.0. Data Anal-+:&he researcher has analyzed the data by using tables and graphs and statistical

    Instrument, 's% !#cel etc

    1.4 CHAPTERI5ATION:1) C"a*ter 1 Intro3,!t+on to t"e t,3-:

    3SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    4/56

    G.I.M.S, SATARA M.B.A PROJECT

    &his chapter includes the introductory part, ob.ectives, scope and limitation

    and it also included important of the study, research methodology used by the

    researcher for this pro.ect

    2) C"a*ter 2 Pro6+le o6 t"e organ+/at+on:

    &his chapter indicates the introduction of the organization, financial position,its subsidiaries and association, organizational structure, history of the

    company

    #) C"a*ter # Con!e*t,al 'rame7or8

    &his chapter defined the conceptual background which is related with pro.ect

    and the research work

    () C"a*ter ( Anal-+ an3 Data Inter*retat+on9

    &his chapter summarizes analyzed data and interpretation of data by using

    &ables, Graphs, Diagrams and other tatistical &ools

    ) C"a*ter '+n3+ng an3 S,gget+on9

    &his chapter includes the conclusions drawn by researcher based on analyzed

    data and further researcher has made an attempt to provide remedial solutions

    in the form of suggestions

    1. IMITATIONS O' THE STUDY:

    34 &he organization providing commodity services in limited geographical area

    ie only in satara city

    54 ome of the respondents were not providing sufficient information

    CHAPTER II

    PRO'IE O' THE ORGANI5ATION

    2.1 INTRODUCTION TO THE ORGANI5ATION:

    Geo.it /0P Paribas today is a leading retail financial ervices "ompany in

    company rides on its rich e#periences in the capital market to offer its clients a

    wide product of saving and investment solution &he gamut of value%added

    4SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    5/56

    G.I.M.S, SATARA M.B.A PROJECT

    products and services offered ranges from e(uities and derivates to mutual funds,

    life and general insurance and third party fi#ed deposits

    Geo.it /0P Paribas has membership in and is listed on the 0ational tock

    !#change ;0!4 and /ombay tock !#change ;/!4 In 5hun.huwala %when it took a stake to become the single largest shareholder

    trategic .oint venture and business partnership in the 'iddle !ast has provide

    the company access to large 0on%Resident Indian ;0RI4 population in the region

    0ow, as a part of the /0P Paribas is a well positioned to further e#pand its reach

    to 0RI)s in @: countries

    2.1.1 E;*an3+ng Range o6 Onl+ne Pro3,!t an3 Ser

  • 8/10/2019 Commodity Market on religare

    6/56

    G.I.M.S, SATARA M.B.A PROJECT

    instance in India of a government entity participating in the e(uity of stock

    broking company

    &he year 3AA: also saw Geo.it /roking "ompany being listed at the stock

    e#change, 'umbai ;/!4 in the year 5

  • 8/10/2019 Commodity Market on religare

    7/56

  • 8/10/2019 Commodity Market on religare

    8/56

    G.I.M.S, SATARA M.B.A PROJECT

    2aunch of online trading in currency derivatives

    "onse(uent to /0P becoming the largest stakeholder in Geo.it 1inancial ervices,

    company is renamed as /0P Paribas 1inancial ervices 2td

    5une 5

  • 8/10/2019 Commodity Market on religare

    9/56

    G.I.M.S, SATARA M.B.A PROJECT

    published on the website of the company and will be available upon re(uest by

    any member interested in obtaining the same

    &he wholly owned subsidiaries, Geo.it "ommodities 2td Eas discontinued the

    commodity brokerage business wef 3st December, 5

  • 8/10/2019 Commodity Market on religare

    10/56

    G.I.M.S, SATARA M.B.A PROJECT

    ;formerly Geo.it "ommodities 2td4, Geo.it 1inancial 'anagement ervice

    Private 2td,;3ohar group in which Geo.it hold 5@F commenced operations in 0ovember 5

  • 8/10/2019 Commodity Market on religare

    11/56

    G.I.M.S, SATARA M.B.A PROJECT

    /0P Paribas ecurities India Pvt 2td, &he .oint venture in 'umbai with /0P

    Paribas for institutional broking, commenced operations in >une 5Geoge is managing director of Geo.it /0P Paribas 1inancial ervices 2td

    atish 'enon is operational directors + /alakrishnan is chief &echnology officer

    ?%9enkitesh is 0ational Eead%distribution, officer tefan Groening is planning

    and control director, >ean%"hristophe Guugeon is marketing manager /inoy 9

    amuel is chief financial officer >aya >acob +le#ander is chief of human

    resources & >ayara. is company secretary

    'anagement &eam is as followed7

    'anagement &eam7

    ">Geoge 7 'anaging Director

    atish 'enon 7 Director ;$peration4

    + /alakrishnan 7 "hief &echnology $fficer

    ? 9enkitesh 7 0ational%Eead Distribution

    11SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    12/56

    G.I.M.S, SATARA M.B.A PROJECT

    tefan Groening 7 Director ;Planning and "ontrol4

    >ean% "hristophe 7 Director ;'arketing4

    /inoy 9 amuel 7 "hief 1inancial officer

    >aya >acob +le#ander 7 "hief of Euman Resources

    & >ayara. 7 "ompany ecretary

    2. IMPORTANT STATISTICA IN'ORMATION:

    $n a standalone basis, the company earned a total income of Rs 3:AB5 crore for

    the financial year, a decrease of 55F over the previous year)s figure of Rs 5

  • 8/10/2019 Commodity Market on religare

    13/56

    G.I.M.S, SATARA M.B.A PROJECT

    2.0ORGANI5ATIONA STRUCTURE:

    Table No. 2.1

    Organ+/at+on? H+erar!"-:

    Sr. No. Name De+gnat+on

    3 'r +P?urian0on%!#ecutive and Independent

    "hairman

    5 'r "> George 'anaging Director and "hief

    13SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    14/56

  • 8/10/2019 Commodity Market on religare

    15/56

    N"#$%&"' H(") *$+#$-#%+

    T(/0&%'% O/(

    $&"&/$"' S($/( P%$)(

    A(+, E(/#$(, T"$&((+

    H.R. M"&"(

    C0$(9 O/(

    $&"&/( O/(

    B%") %9 *$(/#%+

    O:("#$%& M"&"(

    M"&"$& *$(/#%

    M";(#$& M"&"(P'"&&$& < C%%' M"&"(

    G.I.M.S, SATARA M.B.A PROJECT

    Organ+/at+onal C"art:

    CHAPTER III

    CONCEPTUA 'RAME@OR

    #.1INTRODUCTION TO THE STUDY:

    15SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    16/56

    G.I.M.S, SATARA M.B.A PROJECT

    "ommodities market, "ommodity trading, commodity future, &hese terms are not

    very commonly understood by many Eowever, commodity markets offer as mush

    an opportunity to investors as does &he stock market *"ommodity is a product

    haling commercial value, which can be produced, bought, sold and consumed-

    "ommodities are basically the product of primary sector of an economy primary

    sector of an economy is that part of the economy which is concerned with

    agriculture and e#traction of raw material

    "ommodity market is a place where trading in commodities takes place It is

    similar to an e(uity market but instead of bulling or selling shares one buys or

    sells commodities

    In order to (uality as a commodity, an article or a product has to meet some basis

    characteristics &hese are listed below

    34 &he product has not gone through any complicated manufacturing activity,

    though simple processing ;like mining, cropping4 it not ruled out, in other

    words, the product must be in a basic, raw, unprocessed state, ;for instance

    wheat is a commodity but wheat flour and bread are not commodities4

    &here are of course some e#ceptions to this rule eg in case of metals and

    product, like sugar

    54 'a.or consideration while bulling a particular commodity is its price

    ;since there is hardly any difference ine(uality from seller to seller44 &he product has to be fairly standardized in the sense that there cannot

    such differentiation in a product based on its (uality ;eg Rice in rice

    though different, of rice can be treated as different commodities of hence

    traded as separate contracts4

    B4 Prices of the product are determined by market forces demand and supply

    and they undergo rapid changes 1luctuation ;price, must fluctuated

    enough to create uncertainty which meanness both risks and potential

    profit loss for buyer and sellers4

    :4 8sually there would be many competing sellers of the product in the

    market64 &he product should have ade(uate shelf life so that delivery of a buttress

    contract can be deferred

    Ho7 ol3 are t"e Commo3+t+e Mar8et:

    16SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    17/56

    G.I.M.S, SATARA M.B.A PROJECT

    &he commodities markets are one of the oldest prevailing markets in the human

    history in back derogatory trading started off in commodities with the earliest

    records being traced back to the 3=th century when rice futures were traded in

    >apan

    #.2E&AUATION O' COMMODITY MARET IN INDIA:

    India has been an agro%based economy It has a market for most of the agro%based

    commodities India are the largest consumer of gold in the world which implies a

    hedge market for the yellow metal India has huge spot markets for all these

    commodities for instance Indore has a hedge market for soya, +hmadabad for

    castor seeds and surendranager for cotton etc

    During the pre%independence area India also had a thriving future market 1or

    commodities such as gold, silver, cotton, edible oils, etc in mid 3A6< due to wars

    hatred calamities and the conse(uent shortages + future trading in most

    commodities was banned

    "urrently heftier markets that e#ist in India in India are localized for specific

    commodities for e#akarala has an e#change for pepper, +hmadabad for cantor

    seeds +nd mambas are the ma.or center for gold e# &hese e#changes however

    have only a regional presence and are dominated by people who are involved with

    the physical trade of that commodity/ombay cotton &rade +ssociation 2td et up in 3@=: was the first organized

    future market /ache 2td was established in 3@A 1ollowing the wide spread

    discontent amongst leading cotton mill owner of merchants over functioning of

    /" & +ssociation, &he future trading in oil seeds started in 3A

  • 8/10/2019 Commodity Market on religare

    18/56

    G.I.M.S, SATARA M.B.A PROJECT

    /ut organization future trading raw .ute began only in 3A5= with the

    establishment of !ast Indian .ute +ssociation 2td &hese two associations

    amalgamated in 3AB: to form the !ast India lute and Eessian 2td &o conduct

    organized trading in both raw .ute and .ute goods

    1orward contracts ;Regulation4 +ct was enacted in 3A:5 and the forwards market

    commission ;1'"4 was established in 3A: under the ministry of consumer

    +ffairs and public Distribution induce course several other e#change were created

    in the country to trade in diverse commodities

    #.#THE CURRENT DE&EOPMENT IN THIS MARET:

    &he government has now allowed national commodity e#change similar to the

    /ombay stock !#change and the 0ational stock e#haust to come up and let them

    deal in commodity derivatives in an electronic trading environment &hese

    e#changes are e#pected to offer a nationwide anonymous, order%driven, screen%

    based trading system for trading &he forward market commission ;1'"4 will

    regulate these e#changes

    "onse(uently four commodity e#changes have been approved to commerce

    business in this regard they are

    34 'ulti commodity e#change of India 2td ;'"4 located at 'umbai

    54 0ational commodity and Derivatives e#change 2td ;0"D!4 located at'umbai

    4 0ational /oard of trade ;0/$&4 located at Indore

    B4 0ational multi commodity e#change ;0'"!4 located at +hmadabad

    #.#.1 T"e D+66erent t-*e o6 !ommo3+t+e t"at are tra3e3 +n t"ee

    mar8et:

    orld over one will find that a market e#ists for almost all the commodities

    known us &hese commodities can be broadly classified into the following

    34 Precious 'etals% Gold, silver, Platinum etc

    54 $ther 'etals% 0ickel, +luminum, "opper, Hinc etc

    4 +gro%/ased "ommodities J heat, "orn, "otton, oils, oilseeds etc

    B4 oft commodities J "offee, "ocoa, sugar etc

    18SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    19/56

    G.I.M.S, SATARA M.B.A PROJECT

    :4 2ive stock J 2ive cattle park /ellies etc

    64 !nergy% "rude oil 0atural Gas gasoline etc

    #.#.2 Cont+t,ent o6 Commo3+t- Mar8et:

    &he system include following element,

    1) $,-erB SellerBUerBPro3,!er> 'armer:

    "ooperatives, 'etal ;precious and other4 producers suppliersstockiest, +P'",

    'an dies, &raders, /rokers, 'embers of commodity e#changes, state civil supply

    corporations, Eedgers, speculators and arbitragers ;&hese could include corporate

    houses 1'"" companies4

    2) og+t+! !om*an+e:

    torage and &ransport companiesoperator (uality are testing and certifying

    companies) the value

    #) Mar8et an3 E;!"ange:

    pot 'arket ;'andies, /azaars and commodity !#changes ;0ational level and

    Regional level4

    () S,**ort agen!+e:

    Depositories ;De%'aterialization agencies, central and state warehousing

    corporation and Regional level4

    ) en3+ng agen!+e:/anks, 1inancial institutions and the different segments in the commodities

    market7%

    &he commodities market e#ists in taro distinct forms, namely the $ver &he

    "ounter ;$&"4 'arket&he e#change based market also as in e(uities there e#ists the spot and the

    derivatives segments the spot market are essentially over the counter markets and

    then participation is restricted to people who are involved with that commodity,

    say the farmer, processor, wholesaler etc + ma.ority of the derivative trading

    takes places through e#change%based market with standardized contracts,

    settlements etc

    #.( CHARACTERISTICS O' O&ER THE COUNTER COMMODITY

    MARET:

    1SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    20/56

    G.I.M.S, SATARA M.B.A PROJECT

    34 &he $&" 'arket are essentially spot market, and are localized for specific

    commodities +lmost all the trading that takes place in these markets is

    delivery boned

    54 &he buyers as well as the sellers have their set of brokers who negotiated the

    prices for them &his can be illustrated with the help of the following e#ample

    a farmer who produce castor wishingC to sell his produce would go to the local

    'andy &here he would contact his broker who would in turn contact the

    broker)s cepresoneting the buyers &he buyers in this come would be

    wholesalers or refiners

    4 In event of a deal taking place the goods and the money would be e#changed

    directly between the buyer and the seller they, it can be seen that this market is

    restricted touring thus people who are directly involved with the commodity#.(.1 C"ara!ter+t+! o6 t"e E;!"ange Tra3e3 Mar8et:

    &he e#change traded markets are essentially only derivatives market and are

    similar to e(uity derivatives in their working

    34 !verything is standardized and a person can purchase a on tract by paying

    only a percentage of the contract value54 + person can also go short on these e#changes

    4 +lso even though there is provision for delivery most of the contracts are

    en(uired% off before e#piry and are salted cash

    #.(.2 ',n!t+on o6 !ommo3+t- mar8et +n In3+a:

    &here are three types of regulated market in India

    1) S*ot Mar8et:

    +greements Direct purchases for immediate consumption

    2) 'or7ar3 Mar8et: Contra!t)

    + 1orward contract is an agreement to buy or sell an asset on a specified date

    for a specified price one of the parties to the contract assumes a long position

    and agrees to buy the underlying asset on a certain specified future date for a

    certain specified price &he other party assumes a short position and agrees to

    2!SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    21/56

    G.I.M.S, SATARA M.B.A PROJECT

    sell the asset on the same date for the same price $ther contract details like

    delivery date, price and (uantity are negotiated bilaterally by the parties to the

    contracts &he forward contracts are normally traded of forward contracts are

    T"e al+ent 6eat,re o6 6or7ar3 !ontra!t are:

    &hey are bilateral contracts and hence e#posed to counter party risk

    !ach contract is custom designed and hence is uni(ue in terms of contract

    size, e#piration date and the asset type and (uality

    &he contract price is generally not available in public domain

    $n the e#piration date, the contract has to be salted by delivery of the asset

    If the party wishes to reverse the contract it has to compulsorily go to the

    same counterparty hich often results in high prices being chargedK

    Eowever forward contracts in certain markets have become very standardized,

    as in the close of foreign e#change, thereby reducing transaction costs and

    increasing transactions volume &his process of standardization reaches its,

    limit in the organized futures market

    #) Der+

  • 8/10/2019 Commodity Market on religare

    22/56

    G.I.M.S, SATARA M.B.A PROJECT

    'any participants in the commodity futures market are hedgers &hey use the

    futures market to reduce a particular risk that they face

    &his risk might relate to the price of wheat or oil or any other commodity that

    the person deals in the classic hedging e#ample is that of wheat farmer who

    wants to hedge the risk of fluctuations in the price of wheat around the time

    that his crop is ready for harvesting /y selling his crop forward, he obtains a

    hedge by locking in to a predetermined price hedging does not necessarily

    improve the financial outcome Indeed it could make the outcome worse

    hat it does however is that it makes the outcome more certain

    Eedgers could be Government institutions, private corporations 2ike financial

    institutions ginners, processors etc, who are influenced by the commodity

    prices

    ) Arb+trage:

    + "entral idea in modern economies is the law of one price &his states that in

    a competitive market If two assets are e(uivalent from the point of view of

    risk and return, they should sell at the same price &he price of the same asset

    is different in two markets, there will be operator, who will buy in the market

    where the asset sells cheap and sell in the market where it is costly &his

    activity term day arbitrage, involved the simultaneously different Purchase

    and sale are of the same or essentially similar and security in two different

    markets for advantageously different prices &he bulling cheap and selling

    e#pensive continues till prices in the two markets reach e(uilibrium hence,

    arbitrage helps to e(ualize prices and restore market efficiency

    0) S*e!,lat+on:

    It facilitates speculation by providing opportunity to people although not

    involved with the commodity, to trade on the views in the movement of

    commodity prices &he speculative position is taken with a small margin

    amount that is paid to the e#change +nd the contract can be s(uared off

    anytime during the trading hours

    4) S*ot Mar8et:

    22SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    23/56

  • 8/10/2019 Commodity Market on religare

    24/56

    G.I.M.S, SATARA M.B.A PROJECT

    Investors must understand the demand "ycles that commodities go through and

    should have a view on what factors may affect this ideallyC you should invest in

    select commodities that you can analyses rather than speculate across products

    you have no idea about

    Investing in commodities should be undertaken as a kicker in your portfolio and

    not as the first destination for your money

    #.0$ENE'ITS TO IN&ESTORS:34 Eigh financial leverage is possible in commodity markets, in case of

    stock +n investor heeds to put up the full amount of the stock value to but

    the stock with commodities, you control commodity futures contracts,

    with a margin, which I usually between :F to 3

  • 8/10/2019 Commodity Market on religare

    25/56

    G.I.M.S, SATARA M.B.A PROJECT

    34 It)s an age old phenomenon modern market comes up in the late 3@th

    century when farming began to be modernized &hough the trades

    mechanisms have changed the basics are still the same

    54 In commonly parlance commodities means all types of products Eowever

    the 1oreign "urrency Regulation +ct ;1"R+4 defines them as every kind

    of movable property other than actionable clams, money and securities

    4 "ommodity trading is 0oting but trading in commodity spot and

    derivatives ;1utures4 If you are keen on taking a buy or sell position based

    on the future performance of agricultural commodities or commodities

    like gold, silver, metals or crude then you could do so by trading in

    commodity derivatives

    B4 "ommodity derivatives are traded on the 0ational "ommodity and

    Derivative !#change ;0"D!4 and the 'ulti "ommodity !#change

    ;'"4 Gold, ilver, +gric%commodities including grains pulses, spices

    oils and oilseed, menthe oil metals and crude are some of the commodities

    that these e#changes legation

    64 &rading in commodities futures is (uite similar to e(uity future trading

    you could take a long position ;here you buy a contract4 or a short

    positionwhere you sell it4 simply seeking, like in e(uity and other

    markets If you think prices are on them way up you takes a long position

    +nd when prices are headed south you opt for assorts position

    #.0.2 $ene6+t to Pro3,!er:

    It is useful to the producer because he can get an idea of the price likely to prevail

    at a future point of time and therefore can decide between various competing

    commodities, the best that suit, him 1armers for instance, can get assured prices,

    decide on the crop that they want to take and since there is transparency in prices

    he can decide when and where to sell

    #.0.# $ene6+t to t"e E!onom-:

    +s the constituents of the commodity market system get benefited Indian

    economy in turn is also e#pected to gain a lot Growth in the commodity markets

    25SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    26/56

    G.I.M.S, SATARA M.B.A PROJECT

    implies that there could be tremendous benefits to the Indian economy in terms of

    business generation and employment opportunity

    #.0.( General $ene6+t an3 Ot"er A3

  • 8/10/2019 Commodity Market on religare

    27/56

    G.I.M.S, SATARA M.B.A PROJECT

    '" has achieved three I$ certifications including I$ A

  • 8/10/2019 Commodity Market on religare

    28/56

    G.I.M.S, SATARA M.B.A PROJECT

    the world is growing at the rate of ==F compounded annually during the last 35

    years periods while in the importing countries like china and !uropean union the

    consumption of palm oil is growing at the rate of :5F and B@F respectively the

    consumption on growth rate for the world 2eading palm oil importer ;in specific

    and edible oils in general4 India stands at 5:F India china Pakistan and the

    !uropean 8nion are the ma.or importers of palm oil India is the largest importer

    of "P$ with a share of over 3:F of the total (uantity traded in the international

    market &he total imports of India, "hina, Pakistan and !uropean, 8nion amount

    to appro#imately :6F of the total global e#port of palm oil annually

    2) So-bean:

    &he market size of the popularly known miracle bean in India is over Rs%:

  • 8/10/2019 Commodity Market on religare

    29/56

  • 8/10/2019 Commodity Market on religare

    30/56

  • 8/10/2019 Commodity Market on religare

    31/56

    G.I.M.S, SATARA M.B.A PROJECT

    #. SCOPE O' COMMODITY MARET:

    Investment in commodity markets has been leery popular and rewarding for

    investors in 8? and 8+ for investors looking for diversification beyond stock

    markets "ommodity markets otter annotator investment option &he commodity

    markets activity, volume and players multiplied in the recent past India although

    the trading in commodity markets and commodity e#changes it banks and other

    financial institutions to operate in these in commodities in commodities markets

    maul tale us to the basic tends of risk and return theory his e#pended return and

    risk 0ormally it is a risk reward relationship the higher the risk higher is the

    e#pected return and vice area

    #. IMITATIONS O' COMMODITY MARET:

    "ommodity markets, like any other markets, have their own limitations too some

    of them are commodity market prices can fluctuated wildly depending on the

    factors which are sometimes beyond human control ;1loods, storms temporary

    shortages of commodities and hence result in drastic changes in their prices in a

    very short time4 forward futures trading involved a passage of time between

    entering into a contract and its performance making there by the contracts

    susceptlple to risks uncertainties etc

    Eence, it is necessary that the investorsplayers in the commodity markets

    understand the functioning of commodity markets, mechanism o commodity

    e#changes Properly and study the factors that can affect the commodity prices

    carefully

    #.1F CONCUSION:

    1rom the study it can be concluded that "ommodities are basically the product of

    primary sector of an economy primary sector of an economy is that part of the

    economy which is concerned with agriculture and e#traction of raw material"ommodity market is a place where trading in commodities takes place It is

    similar to an e(uity market but instead of bulling or selling shares one buys or

    sells commodities

    31SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    32/56

    G.I.M.S, SATARA M.B.A PROJECT

    CHAPTER I&

    DATA ANAYSIS AND INTERPRETATION

    (.1 INTRODUCTION:

    +fter collection of data the ne#t important step is +nalysis of data In analysis of

    data, researcher has used various statistical tools like tables, charts, and diagrams

    etc &he +nalysis of data accomplished with the help of primary N secondary

    data &his chapter gives the various types of information to the entire pro.ect &his

    is essential for the study and for ensuring that the researcher has all relevant data

    for making contemplated comparison and analysis

    (.2 DATA ANAYSIS:

    1or the purpose of analysis of data, research has used various statistical as

    well as analytical tools like tabulation, percentage and ranking method +fter

    32SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    33/56

  • 8/10/2019 Commodity Market on religare

    34/56

    G.I.M.S, SATARA M.B.A PROJECT

    M"'( (="'(

    !

    5

    1!

    15

    2!

    25

    3!

    354!

    45

    Gender wise Analysis

    (>(&/

    Gender

    No of Investors

    Table No. (.2.2

    Age @+e Anal-+:

    1ollowing table shows the number of investors appears in the various age groups

    Inter*retat+on:

    +bove table indicate that, the 53 investors are from 53 J < of age group

    34SHIVAJI UNIVERSITY, KOLHAPUR.

    Sr. No. Age Gro,* 're,en!- Per!entage

    3 /elow 5< Lears 3 5

    5 53 J < 53 @

    3 J B< 3A :

    B B3 J :< 33 5(&/

    Occupation

    No of investors

    Table No. (.2.(

    In!ome @+e Anal-+:

    1ollowing table shows the number of investors appears in the various Income

    36SHIVAJI UNIVERSITY, KOLHAPUR.

    Sr. No. In!ome Gro,* 're,en!- Per!entage

    3 /elow 3 2ac : A

    5 3%5 2ac @ 3:

    5% 2ac 3= (&/

    Commo3+t-

    No o6 +n

  • 8/10/2019 Commodity Market on religare

    42/56

  • 8/10/2019 Commodity Market on religare

    43/56

    G.I.M.S, SATARA M.B.A PROJECT

    Inter*retat+on:

    &his table defines the Investment Duration of commodity market $ut of B:

    Investors 3< have used the 2ong term Investment duration +nd remain 3@Investors have used the intraday trading and 33 investor has used the all of this

    Investmentduration

    Gra*" No. (.2.: In(&/

    In

  • 8/10/2019 Commodity Market on religare

    44/56

    G.I.M.S, SATARA M.B.A PROJECT

    Anal-+ 6or P,r*oe o6 In

  • 8/10/2019 Commodity Market on religare

    45/56

    G.I.M.S, SATARA M.B.A PROJECT

    !246

    81!1214

    Purpose of Investment

    (>(&/

    In

  • 8/10/2019 Commodity Market on religare

    46/56

  • 8/10/2019 Commodity Market on religare

    47/56

    G.I.M.S, SATARA M.B.A PROJECT

    Table No. (.2.12

    So,r!e o6 a7arene abo,t !ommo3+t- mar8et:

    Inter*retat+on:

    +bove table shows that the media used by the investors to get ac(uaintance about

    "ommodity 'arket 5 investors have used the /rokers tips N the: investors

    have used the &9 and 1riend to get information about "ommodity 'arket

    Gra*" No. (.2.12: So,r!e o6 a7arene abo,t !ommo3+t- mar8et:

    !5

    1!

    152!253!35

    So,r!e o6 A7arene abo,t Commo3+t- mar8et

    (>(&/

    So,r!e

    No o6 +n

  • 8/10/2019 Commodity Market on religare

    48/56

    G.I.M.S, SATARA M.B.A PROJECT

    Inter*retat+on:

    &his table defines the future Investment of commodity market $ut of ::

    Investors 6 investors are interested to investment in commodity market

    Gra*" No. (.2.1#: Anal-+ o6 +n(&/

    In

  • 8/10/2019 Commodity Market on religare

    49/56

    G.I.M.S, SATARA M.B.A PROJECT

    So,r!e: Pr+mar- 3ata)

    Inter*retat+on:

    1rom the above table it can be concluded that 5:A investors give first rank to

    !(uity, further 5:B investors ranked second for Insurance followed by 'utual

    1unds their preferred investment

    Gra*" No. (.2.1#: Anal-+ o6 Ran8+ng o6 In

  • 8/10/2019 Commodity Market on religare

    50/56

  • 8/10/2019 Commodity Market on religare

    51/56

    G.I.M.S, SATARA M.B.A PROJECT

    54 In rural area there are large scopes for different agricultural commodities and it

    helps to increase their monthly or annual income and also their life style

    4 $rganization should take initiative towards marketing and promotion activities

    to penetrate in investment industry

    B4 Eighly income people are mostly invested their money, so company should

    also give more information about various income group investors through

    pamphlets broacher, advertising to rural people who do not aware about

    commodity market

    :4 &he company should offer promotional policies or strategies and conduct

    training to their dealers because trained and motivated dealer will peruse

    people and they will give total information about commodity market to people

    so it will be resulted into increasing the awareness of peoples about

    commodity market

    ANNEURE

    51SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    52/56

    G.I.M.S, SATARA M.B.A PROJECT

    UESTIONNAIRE

    1. Name9

    +ddress%

    'obile 0o

    !mail id%

    Gen3er% a4 'ale%

    b4 1emale%

    Mar+tal tat,% a4 'arried%

    b4 8nmarried%

    2. No. o6 De*en3ant9

    a4 3

    b4 5

    c4

    d4 B

    e4 : N +bove

    #. Age Gro,*9

    a4 /elow 5< year% b4 53 to year

    c4 3 to B< year% d4 B3 to :< year%

    e4 :< N above%

    (. O!!,*at+on9

    a4 Professional% b4 /usiness%

    52SHIVAJI UNIVERSITY, KOLHAPUR.

  • 8/10/2019 Commodity Market on religare

    53/56

    G.I.M.S, SATARA M.B.A PROJECT

    c4 elf employers d4 Eouse ife%

    e4 $ther%

    . In!ome Gro,* *er -ear9

    a4 /elow 3 lac% b4 3%5 2ac%

    c4 5% 2ac% d4 %B 2ac%

    e4 B%: 2ac% f4 above : lac%

    0 .@"at are -o,r +n

  • 8/10/2019 Commodity Market on religare

    54/56

    G.I.M.S, SATARA M.B.A PROJECT

    c4 3

  • 8/10/2019 Commodity Market on religare

    55/56

    G.I.M.S, SATARA M.B.A PROJECT

    c4 5%: years% d4 :%= years%

    e4 = yearN above%

    1. 'rom 7"ere 3o -o, get +n6ormat+on regar3+ng Commo3+t- Mar8et

    a4 1riend b4 +dvisor

    c4 /rokers tips d4 &9

    1. Are -o, at+6+e3 7+t" Geo=+t Ser t"en @"at 8+n3 o6 er

  • 8/10/2019 Commodity Market on religare

    56/56

    G.I.M.S, SATARA M.B.A PROJECT

    34 "ommodities 'arket 'odule ork /ook ;0! "ertification in 1inancial 'arket4

    54 " > George ;Bth,>ulys 5