features and futures of trading in commodities

8/2/2019 Features and Futures of Trading in Commodities

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Features and Futures of Trading InCommodities.

Presented By:Ravinder Khatri

(09ITMG-MBA6836)


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Fullerton Securities & Wealth Advisors Limted is a company

registered under Indian company law, incorporated on 8th Feb. 2008

Major activities and offerings of the company include equity broking both

offline and online, depository participant services, portfolio management

services and institutional brokerage

Member of the NSE, BSE, and SEBI approved portfolio manager.

Aggressive ramp up of equity trading client accounts with market shareincreasing to 3.8% in June 2010 from 2.7% in FY09 and online trading

market share decreased from 3.8% in FY10 to 2.7% in FY11 and now

again in FY11 its 3.9%.

Fullerton Securities & Wealth Advisors

Limted is a company registered under

Indian company law, incorporated on 8th

Feb. 2008

Major activities and offerings of the companyinclude equity broking both offline andonline, depository participant services,portfolio management services andinstitutional brokerage

Member of the NSE, BSE, and SEBI approvedportfolio manager.

Aggressive ramp up of equity trading clientaccounts with market share increasing to

3.8% in June 2010 from 2.7% in FY09 andonline trading market share decreased from3.8% in FY10 to 2.7% in FY11 and now againin FY11 its 3.9%.


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To know about the growth in the commoditymarket

To analyze the awareness level of people in

commodities.To study the average amount paid by the

respondents for commodities investment.

To convince the customers to invest incommodities.

To know about the growth

in the commodity market

To analyze the awareness

level of people in

commodities.

To study the average

amount paid by therespondents for

commodities investment.

To convince the customers

to invest in commodities.


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Sources of information :

Primary Sources:

Through questionnaire

Face to face interview

Secondary Sources :

Record maintained by the company

Internet sites

Sampling technique :

Random sampling techniques being used.

Sources of information :

Primary Sources:

Through questionnaire

Face to face interview

Secondary Sources :

Record maintained by

the companyInternet sites

Sampling technique :

Random sampling

techniques being used.


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Commodities: A commodity is a good for which thereis demand, but which is supplied without qualitativedifferentiation across a market. Commodities are

substances that come out of the earth and maintain

roughly a universal price.

Examples are petroleum, notebook paper, milk or

copper.

Inventory of commodities plays a role in the pricing,

with low inventories typically leading to more volatilefuture prices and increasing the risk of a "stock-out"

(inventory exhaustion).

Inventory data on 31 commodities was used in a 2006

study on the relationship between inventories and

Commodities: A commodity is agood for which there is demand, but

which is supplied without qualitative

differentiation across a market.Commodities are substances that

come out of the earth and maintain

roughly a universal price.

Examples are petroleum, notebookpaper, milk or copper.

Inventory of commodities plays a

role in the pricing, with low

inventories typically leading to morevolatile future prices and increasing

the risk of a "stock-out" (inventory

exhaustion).

Inventory data on 31 commodities
http://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Good_(economics)


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Indian Commodity futures markets-Structure

Forward Market Commission (FMC)

Commodity Exchanges

Nationalexchanges

Regionalexchanges

NCDEX NMCEMCX NBOT Other RegionalExchanges


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Indian Commodities Market

CommoditiesRs. 11000 bn

Agriculture Base Metals Energy Precious Metals

Rs. 5000 bn Rs. 600 bn Rs. 5000 bn Rs. 400 bn

Agri commodities alone constitute 20% of Indian GDP


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The Indian Commodity market stands out quite tall amongst the globalmarkets for a variety of factors:

Supply: Worlds leading producer of Agri Commodities

Demand: Worlds major market of Bullion , Foodgrains, Edible Oil, Fibres,Spices, and Plantation crops.

GDP : India is a predominant driver of the agrarian economy

Waiting to explode : Value of production around Rs 3,00,000 crore andexpected futures market potential around Rs 30,00,000 crore

The Indian Commodity market stands out quite tall amongst the globalmarkets for a variety of factors:

Supply: Worlds leading producer of Agri Commodities

Demand: Worlds major market of Bullion , Foodgrains, Edible Oil,Fibres, Spices, and Plantation crops.

GDP : India is a predominant driver of the agrarian economy

Waiting to explode : Value of production around Rs 3,00,000 crore andexpected futures market potential around Rs 30,00,000 crore


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People are not ready to look beyond Equity for their

investment needs and do to trust private players with

their hard earned money. Customers have not much

knowledge of market

People consider commodity trading as a tool which

covers investment plan.

Less investors and more traders.

The commodity market is likely to go up in coming

years because of development in various industrial

People are not ready to

look beyond Equity for

their investment needs

and do to trust privateplayers with their hard

earned money.

Customers have not

much knowledge ofmarket

People consider

commodity trading as atool which covers

investment plan.

Less investors and more


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Use the method of mass marketing.

Focus on customer satisfaction.Implement hardcore marketing effort.

Company should focus on middle line as they

generate maximum business for organization.Housewives to target as they show interest from

interviews and telephone.

Training sessions should be arranged for theawareness about future of this market.

Researcher should also show self interest to motivate

customers.

We should u date ourselves so that we can educate

Use the method of mass

marketing.

Focus on customer

satisfaction.Implement hardcore

marketing effort.

Company should focus on

middle line as theygenerate maximum

business for organization.

Housewives to target as

they show interest frominterviews and telephone.

Training sessions should

be arranged for the

awareness about future of


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Thank you!!!

features and futures of trading in commodities

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