final project combine all data in comodity market

8/8/2019 Final Project Combine All Data in Comodity Market

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SHARE BROKING SERVICE SECTOR PROFILE

There are several national as well as local players in stock trading services which are providing

various services to their customers like online trading, portfolio management system, stock

broking etc. Various key players in this sector are:

KEY PLAYERS1:

5Paisa.com - Online trading, live stock quotes and market research

Advani Share Brokers - Share broking and market research services

Anand Rathi Securities - Portfolio management, corporate finance, equity & fixed

income brokerage services

Brescon Group - Advisory and broking services

CIL Securities - Stock broking & merchant banking services

CRN India - Trends of stock market, trading tips, chat etc

Churiwala Securities - Stock trading, quotes and market analysis

DSP Merrill Lynch - Investment banking and brokerage services

Dalmia Securities - Stock broking & depository services

EquityTrade - Stock trading, company news & market research

Gandhi Securities - Stock broking and investment services

Hasmukh Lalbhai - Stock trading services

Idafa Investments - Stock broking services

India Market Access - Offers stock broking, portfolio management and investment banking

services

Investsmart India - Personal finance advisory & online brokerage services

Kisan Ratilal Choksey Shares - Stock broking and e-trading services

Kotak Securities - Brokerage services & retail distributor of financial securities

Manubhai Mangaldas Securities - Stock broking and market analysis

Moneypore - Investment and broking services

Motilal Oswal - Online trading, live BSE and NSE quotes

Navia Markets - Stock broking, IPO and mutual funds services

Parag Parikh - Stock broking and portfolio management

Parsoli Corporation - Investment management & stock trading services
http://www.searchindia.com/cgi-bin/search/index.cgi?ID=966377344http://www.searchindia.com/cgi-bin/search/index.cgi?ID=1016666638http://www.searchindia.com/cgi-bin/search/index.cgi?ID=955747502http://www.searchindia.com/cgi-bin/search/index.cgi?ID=973785596http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947985327http://www.searchindia.com/cgi-bin/search/index.cgi?ID=956950423http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687249http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947365968http://www.searchindia.com/cgi-bin/search/index.cgi?ID=955888141http://www.searchindia.com/cgi-bin/search/index.cgi?ID=964445292http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687084http://www.searchindia.com/cgi-bin/search/index.cgi?ID=993560917http://www.searchindia.com/cgi-bin/search/index.cgi?ID=978734958http://www.searchindia.com/cgi-bin/search/index.cgi?ID=930088159http://www.searchindia.com/cgi-bin/search/index.cgi?ID=952057582http://www.searchindia.com/cgi-bin/search/index.cgi?ID=979347867http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947365119http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687737http://www.searchindia.com/cgi-bin/search/index.cgi?ID=1000747099http://www.searchindia.com/cgi-bin/search/index.cgi?ID=930089255http://www.searchindia.com/cgi-bin/search/index.cgi?ID=968327356http://www.searchindia.com/cgi-bin/search/index.cgi?ID=956269124http://www.searchindia.com/cgi-bin/search/index.cgi?ID=959008817http://www.searchindia.com/cgi-bin/search/index.cgi?ID=1016666638http://www.searchindia.com/cgi-bin/search/index.cgi?ID=955747502http://www.searchindia.com/cgi-bin/search/index.cgi?ID=973785596http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947985327http://www.searchindia.com/cgi-bin/search/index.cgi?ID=956950423http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687249http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947365968http://www.searchindia.com/cgi-bin/search/index.cgi?ID=955888141http://www.searchindia.com/cgi-bin/search/index.cgi?ID=964445292http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687084http://www.searchindia.com/cgi-bin/search/index.cgi?ID=993560917http://www.searchindia.com/cgi-bin/search/index.cgi?ID=978734958http://www.searchindia.com/cgi-bin/search/index.cgi?ID=930088159http://www.searchindia.com/cgi-bin/search/index.cgi?ID=952057582http://www.searchindia.com/cgi-bin/search/index.cgi?ID=979347867http://www.searchindia.com/cgi-bin/search/index.cgi?ID=947365119http://www.searchindia.com/cgi-bin/search/index.cgi?ID=987687737http://www.searchindia.com/cgi-bin/search/index.cgi?ID=1000747099http://www.searchindia.com/cgi-bin/search/index.cgi?ID=930089255http://www.searchindia.com/cgi-bin/search/index.cgi?ID=968327356http://www.searchindia.com/cgi-bin/search/index.cgi?ID=956269124http://www.searchindia.com/cgi-bin/search/index.cgi?ID=959008817http://www.searchindia.com/cgi-bin/search/index.cgi?ID=966377344


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Pratibhuti Viniyog - Stock broking services

Prudential - Investment management services

Quantum Securities - Offers broking and portfolio management services.

Sivan Securities - offers services related investment banking & stock broking with a focus on

South India.

Skindia Finance - Brokerage firm focusing on GDR arbitrage, equities & debt

Stock Holding Corporation of India - Custody management, safekeeping & stock broking

services

StockMarkit.com - Stock quotes, news, market indicators etc

Sunidhi Consultancy - Stock broking, portfolio management & equity research

Techno Shares - Stock broking and portfolio management

Valia Consultancy - Stock investment and trading consultancy1

COMPANY PROFILE:

SSKI HISTORY:

Sevaklal Sevantilal Kantilal Ishwarlal

Securities Private Limited.

Founded in 1922, it is one of Indias oldest brokerage houses having over Eighty years of

broking experience.

Founding member of the Stock Exchange, Mumbai and pioneer institutional broker.

SSKI is the only domestic player in a market crowded by 44 multinational securities firm.

Foray into institutional broking and corporate finance 20 years ago. SSKI group also

comprises Institutional broking division caters to the largest domestic and foreign
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institutional investors, the corporate finance division focuses on niche areas such as

infrastructure, telecom and media. SSKI holds a sizeable portion of the market in each of

these segments.

Forerunner of investment research in the Indian market, SSKI provide the best research

coverage amongst broking houses in India. The companys research team was set up in

December 1992 and is rated as one of the best in the country. Voted four times as the top

domestic brokerage house by Asia money survey, SSKI is consistently ranked amongst the

top domestic brokerage houses in India.

Retail broking started in 1985.

Research group was set up in December 1992.

It acts as a pioneer if investment research in the Indian market aimed at generating quick

investment ideas.

Group interest Investment Banking, Institutional Broking and Retail Broking.It occupies 65%

of business share from foreign institutional investors.

SSKI named its online division as Sharekhan on February 8, 2000 coinciding with the

launch of its website.

Sharekhan is a share broking and retail broking arm of SSKI, an organization with more than 80

years of trust and credibility in the stock market. Retail Distribution Started In 1998. SSKI is a veteran

equities solutions company with over 8 decades of experience in the Indian stock markets. It helps the

customers/people to make informed decisions and simplifies investing in stocks. SSKI named its online

division as a Sharekhan and it is into retail broking. The business of the company overhauled 6 years

ago on February 8, 2000. It acts as a discount brokerage house to a full service investment solution

provider. It has specialized research product for the small investors and day traders. Sharekhan has a

shop in 170 cities across India.

They have talent pool of experienced professionals specially designated to guide customers when they

need assistance, which is why investigating with Sharekhan is bound to be a hassle-free

experience for customers!

The Sharekhan provides its customers First Step program, built specifically for new investors, which

guide throughout investing lifecycle.

They have 510 share shops across 170 cities in India to get a host of trading related services.

ABOUT SHAREKHAN


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SSKI named its online division as SHAREKHAN and it is into retail broking.

It acts as a discount brokerage house to a full service investment solutions provider.

It has specialized research product for the small investors and day traders.

The site was also launched on February 8, 2000 and named it aswww.sharekhan.com

The Speed Trade account of Sharekhan is the next generation technology product launched

on April 17, 2002.

It offers its customers with the trade execution facilities on the NSE and BSE, for cash as

well as derivatives, depository services.

Ensures convenience in Trading Experience: Sharekhans trading services are designed to

offer an easy, hassle free trading experience, whether trading is done daily or occasionally.

The customer will be entitled to a host of value added services in the investment process

depending on his investing style and frequency offers a suite of products and services,

providing the customers with a multi-channel access to the stock markets.

It gives advice based on extensive research to its customers and provides them with relevant

and updated information to help him make informed about his investment decisions.

Sharekhan offers its customers the convenience of a broker-DP.

It helps the customers meet his pay in obligations on time thereby reducing the possibility of

auctions. The company believes in flexibility and therefore allows accepting late instructions

without any extra charge. And execute the instruction immediately on receiving it and

thereafter the customer can view his updated account statement on Internet.

Sharekhan depository services offer Demat services to individual and corporate investors. It

has a team of professionals and the latest technological expertise dedicated exclusively to

their Demat department. A customer can avail of Demat, repurchase and transmission

facilities at any of the Sharekhan branches and business partners outlets.

BRAND NAME

The company as a whole in its offline business has named itself as SSKI Securities Private

Limited Sevaklal Sevantilal Kantilal Ishwarlal Securities Private Limited. The company has

preferred to name themselves under a blanket family name.
http://www.sharekhan.com/http://www.sharekhan.com/


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But in its online division started since 1997, the company preferred to name itself as

SHAREKHAN. The Brand name SHAREKHAN itself suggests the business in which the

company is dealing so that the customer could easily identify the product or service category.

SERVICES PROVIDED BY SHAREKHAN

Online Services

Offline Services

Depository Services

Equity and Derivatives Trading

Fundamental Research


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Technical Research

Portfolio Management

Commodities Trading

Dial-n-trade

Share shops

1. Online Services:

1. Mutual Funds

2. Commodity Futures

3. PMS (Portfolio Management Service)

4. Technical PMS

5. Demat Services

6. Share shops

1. Offline Services:

Trading with the help of Dealer

1. Trading without credit

2. By calling to the Share shops

3. Credit facility (Only in Delivery-based)

4. T+2 facility

5. Special website for Offline Clients: www.mysharekhan.com

6. Physical contract notes

Types of Account

Classic A/c

Speed-trade
http://www.mysharekhan.com/http://www.mysharekhan.com/


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[A] Classic A/c:

Features of Classic A/c:

Online trading account for investing in Equities and Derivatives via sharekhan.com

Integration of: Online trading + Bank + Demat account.

Instant cash transfer facility against purchase & sale of shares.

Make IPO bookings.

You get Instant order and trade confirmations by e-mail

Streaming Quotes.

Personalized Market Scan with your own customized stock ticker.

Single screen interface for cash and derivatives.

[B] Speed-trade:

Features of Speed-trade:

Instant order Execution & Confirmation

Single screen trading terminal

Real-time streaming quotes, tic-by-tic charts

Market summary (most traded scrip, highest value and lots of other relevant statistics)

Hot keys similar to a brokers terminal

Alerts and reminders

Back-up facility to place trades on Direct Phone lines

Single screen interface for cash and derivatives

[C] Dial-n-trade:

Features of Dial-n-trade:

Two numbers for placing orders for customers: Toll free number: 1-800-22-7050. For

people with difficulty in accessing the toll-free number, a Reliance number 30307600

which is charged at Rs. 1.50 per minute for STD calls.Automatic funds transfer with phone

banking (for Citibank and HDFC bank customers.

Simple and Secure Interactive Voice Response based system for authentication.


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No waiting time. Enter TPIN to be transferred to Sharekhans telebrokers.

One can also get the trusted, professional advice of Sharekhans telebrokers.

After hours order placement facility between 8.00 am and 9.30 am (timings to be extended

soon.

BANK AFFILIATION

Sharekhan has affiliation with 7 banks, which allows its customers to enjoy the facility of instant

credit and transfer of funds from his savings bank account to his Sharekhan trading account. The

Affiliated banks are as follows:

HDFC BANK

UTI BANK

CITI BANK

ORIENTAL BANK OF COMMERCE

IDBI BANK

UBI BANK

CORPORATION BA

PROMOTION TOOLS AND ADVERTISEMENT OF SHAREKHAN

Promotion

Online share trading is totally a new concept in Indian market. Generally investor doesnt like to

come from conventional way of share trading. Sharekhan has introduced this product in the

concept and products are still new in the market. Therefore the company has undertaken

extensive promotion campaign to create awareness about the product. Sharekhan adopts the

following tools for promoting the product.

Internet


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Tele Marketing

Retail Share Shops

Franchisee Owners

Sales Force

Advertising

Company advertises its product through TV media on channels like CNBC, Print Media-in

leading dailies and outdoors media. It advertises itself as an innovative brand with a cartoon of

tiger-called SHERU. Besides attractive and colorful brochures as well as posters are used giving

full details about the product. Mails are sent to people togging on to sites like moneycontrol.com

and rediff.com.


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Commodity

A commodity is some good for which there is demand, but which is supplied without qualitative

differentiation across a market. It is fungible, i.e. the same no matter who produces it. Examplesare petroleum, notebook paper, milk or copper. [1] The price of copper is universal, and fluctuatesdaily based on global supply and demand. Stereo systems, on the other hand, have many aspectsof product differentiation, such as the brand, the user interface, the perceived quality etc. And,the more valuable a stereo is perceived to be, the more it will cost.

In contrast, one of the characteristics of a commodity good is that its price is determined as afunction of its market as a whole. Well-established physical commodities have actively tradedspot and derivative markets. Generally, these are basic resources and agricultural products suchas iron ore,crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminum, copper,rice,wheat, gold, silver,palladium, andplatinum. Soft commodities are goods that are grown, whilehard commodities are the ones that are extracted through mining.

Definition of comodity

A physical substance, such as food, grains, and metals, which is interchangeable with anotherproduct of the same type, and which investorsbuy orsell, usually through futures contracts. Theprice of the commodity is subject to supply and demand. Risk is actually the reason exchangetrading of the basic agricultural products began. For example, a farmer risks the cost ofproducing a product ready formarket at sometime in the future because he doesn't know what theselling price will be.
http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Ethanolhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Aluminumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Platinumhttp://www.businessdictionary.com/definition/food.htmlhttp://www.businessdictionary.com/definition/grain.htmlhttp://www.businessdictionary.com/definition/metal.htmlhttp://www.investorwords.com/3874/product.htmlhttp://www.investorwords.com/2630/investor.htmlhttp://www.investorwords.com/636/buy.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/2136/futures_contract.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/5873/Commodities.htmlhttp://www.businessdictionary.com/definition/subject-to.htmlhttp://www.businessdictionary.com/definition/supply-and-demand.htmlhttp://www.investorwords.com/4292/risk.htmlhttp://www.investorwords.com/1797/exchange.htmlhttp://www.investorwords.com/5030/trading.htmlhttp://www.investorwords.com/1148/cost.htmlhttp://www.investorwords.com/2962/market.htmlhttp://www.businessdictionary.com/definition/selling-price.htmlhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Fungiblehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Ethanolhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Aluminumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Platinumhttp://www.businessdictionary.com/definition/food.htmlhttp://www.businessdictionary.com/definition/grain.htmlhttp://www.businessdictionary.com/definition/metal.htmlhttp://www.investorwords.com/3874/product.htmlhttp://www.investorwords.com/2630/investor.htmlhttp://www.investorwords.com/636/buy.htmlhttp://www.investorwords.com/4467/sell.htmlhttp://www.investorwords.com/2136/futures_contract.htmlhttp://www.investorwords.com/3807/price.htmlhttp://www.investorwords.com/5873/Commodities.htmlhttp://www.businessdictionary.com/definition/subject-to.htmlhttp://www.businessdictionary.com/definition/supply-and-demand.htmlhttp://www.investorwords.com/4292/risk.htmlhttp://www.investorwords.com/1797/exchange.htmlhttp://www.investorwords.com/5030/trading.htmlhttp://www.investorwords.com/1148/cost.htmlhttp://www.investorwords.com/2962/market.htmlhttp://www.businessdictionary.com/definition/selling-price.html


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http://www.investorwords.com/975/commodity.html

History of commodity market

The modern commodity markets have their roots in the trading of agricultural products. Whilewheat and corn, cattle and pigs, were widely traded using standard instruments in the 19thcentury in the United States, other basic foodstuffs such as soybeans were only added quite

recently in most markets.[ For a commodity market to be established, there must be very broadconsensus on the variations in the product that make it acceptable for one purpose or another.

The economic impact of the development of commodity markets is hard to overestimate.Through the 19th century "the exchanges became effective spokesmen for, and innovators of,improvements in transportation, warehousing, and financing, which paved the way to expandedinterstate and international trade."[

India Commodity MarketIndia commodity market consists of both the retail and the wholesale market in the country. Thecommodity market in India facilitates multi commodity exchange within and outside the countrybased on requirements. Commodity trading is one facility that investors can explore for investingtheir money. The India Commodity market has undergone lots of changes due to the changingglobal economic scenario; thus throwing up many opportunities in the process. Demand forcommodities both in the domestic and global market is estimated to grow by four times than thedemand currently is by the next five years.

Commodity Trading

Commodity trading is an interesting option for those who wish to diversify from thetraditional options like shares, bonds and portfolios. The Government has made almost allcommodities entitled for futures trading. Three multi commodity exchanges have been set up inthe country to facilitate this for the retail investors. The three national exchanges in India are:

Multi Commodity Exchange (MCX)

National Commodity and Derivatives Exchange (NCDEX)

National Multi-Commodity Exchange (NMCE)

Commodity trading in India is still at its early days and thus requires an aggressive growth planwith innovative ideas. Liberal policies in commodity trading will definitely boost the commoditytrading. The commodities and future market in the country is regulated by Forward Markets

commission (FMC).
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http://www.indianmba.com/Occasional_Papers/OP62/OP62.jpg
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FMC

Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authoritywhich is overseen by the Ministry of Consumer Affairs, Food and Public Distribution, Govt.of India. It is a statutory body set up in 1953 under the Forward Contracts (Regulation) Act,1952.

" The Act provides that the Commission shall consist of not less than two but not exceeding fourmembers appointed by the Central Government out of them being nominated by the CentralGovernment to be the Chairman thereof. Currently Commission comprises three membersamong whom Shri B.C. Khatua, IAS, is the Chairman, Shri Rajeev kumar Agarwal, IRS andShri D.S.Kolamkar, IES are the Members of the Commission."

http://www.fmc.gov.in/

Multi Commodity Exchange (MCX)

Headquartered in the financial capital of India, Mumbai, Multi Commodity Exchange of

India Ltd (www.mcxindia.com) is a demutualised nationwide electronic commodity futures

exchange set up by Financial Technologies (India) Ltd. with permanent recognition from

Government of India for facilitating online trading, clearing & settlement operations for

futures market across the country. The exchange started operations in November 2003.

MCX has achieved three ISO certifications including ISO 9001:2000 for quality

management, ISO 27001:2005 - for information security management systems and ISO14001:2004 for environment management systems. MCX offers futures trading in more than

40 commodities from various market segments including bullion, energy, ferrous and non-

ferrous metals, oil and oil seeds, cereal, pulses, plantation, spices, plastic and fibre. The

exchange strives to be at the forefront of developments in the commodities futures industry

and has forged strategic alliances with various leading International Exchanges, including

Tokyo Commodity Exchange, Chicago Climate Exchange, London Metal Exchange, New

York Mercantile Exchange, Bursa Malaysia Derivatives, Berhad and others.

Key shareholders

Promoted by Financial Technologies (India) Ltd, MCX enjoys the confidence of blue chips

in the Indian and international financial sectors. MCXs broadbased strategic equity partnersinclude, NYSE Euronext, State Bank of India and its associates (SBI), National Bank for

Agriculture and Rural Development (NABARD), National Stock Exchange of India Ltd.

(NSE), SBI Life Insurance Co. Ltd., Bank of India (BOI) , Bank of Baroda (BOB), Union

Bank of India, Corporation Bank, Canara Bank, HDFC Bank, Fid Fund (Mauritius) Ltd. - an

affiliate of Fidelity International, ICICI Ventures, IL&FS, Kotak group, Citi Group and

Merrill Lynch.
http://www.mcxindia.com/http://images.google.co.in/imgres?imgurl=http://www.ftindia.com/aboutus/images/logo_mcx.gif&imgrefurl=http://www.ftindia.com/aboutus/groupcompanies/exchange.htm&usg=__HK1Qu0EUrYnSmV2OIjtO-LFQA_s=&h=77&w=152&sz=2&hl=en&start=3&um=1&itbs=1&tbnid=3UiF2oyfzAsZBM:&tbnh=49&tbnw=96&prev=/images?q=mcxindia&um=1&hl=en&sa=G&tbs=isch:1http://www.mcxindia.com/


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www.mcxindia.com

National Commodity and Derivatives Exchange National Commodity & Derivatives Exchange Limited (NCDEX) is an online commodityexchangebased in India. It was incorporated as a private limited company incorporated on April23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement ofBusiness on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is aclosely held private company which is promoted by national level institutions and has anindependent Board of Directors and professionals not having vested interest in commoditymarkets

Commodities Traded at NCDEX:-

Bullion Silver, Brent

Gold KG

Minerals Electrolytic Copper Cathode,

Aluminum Ingot,

Nickel

Cathode,

Zinc Metal Ingot,

Mild steel Ingots

Oil and Oil seeds:- Cotton seed,

Oil cake,

Crude Palm Oil,

Groundnut (in shell),

Groundnut expeller Oil,

Cotton,

Mentha oil,

RBD Pamolein, RM
http://www.mcxindia.com/http://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Indiahttp://www.mcxindia.com/http://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/Commodity_exchangehttp://en.wikipedia.org/wiki/India


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seed oil cake,

Refined soya oil,

Rape seeds,

Mustard seeds,

Caster seed,

Yellow soybean,

Meal

Pulses Urad,

Yellow peas,

Chana,

Tur,

Masoor,

Grain Wheat,

Indian Pusa Basmati Rice,

Indian parboiled Rice (IR-36/IR-64),

Indian raw Rice (ParmalPR-106),

Barley,

Yellow red maize

Spices Jeera,

Turmeric,

Pepper

Plantation Cashew,

Coffee Arabica,

Coffee Robusta


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Fibers and other Guar Gum,

Guar seeds,

Guar,

Jute sacking bags,

Indian 28

cotton,

Indian 31mm cotton,

Lemon, Grain Bold,

Medium Staple,

Mulberry,

Green Cottons,

Potato,

Raw Jute,

Mulberry raw Silk,

V-797 Kapas,

Sugar,

Chilli LCA334

Energy Crude Oil,

Furnace oil

http://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchange

National multi commodity exchange of India ltd
http://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchangehttp://en.wikipedia.org/wiki/File:Nmce_logo.JPGhttp://en.wikipedia.org/wiki/National_Commodity_and_Derivatives_Exchange


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In response to the Press Note issued by the Government of India during May'1999, first state-of-the-art demutualised multi-commodity Exchange, National Multi Commodity Exchange of IndiaLtd. (NMCE) was promoted by commodity-relevant public institutions, viz., CentralWarehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation ofIndia (NAFED), Gujarat Agro-Industries Corporation Limited (GAICL), Gujarat State

Agricultural Marketing Board (GSAMB), National Institute of Agricultural Marketing (NIAM),and Neptune Overseas Limited (NOL). While various integral aspects of commodity economy,viz., warehousing, cooperatives, private and public sector marketing of agricultural commodities,research and training were adequately addressed in structuring the Exchange, finance was still avital missing link. Punjab National Bank (PNB) took equity of the Exchange to establish thatlinkage. Even today, NMCE is the only Exchange in India to have such investment and technicalsupport from the commodity relevant institutions. These institutions are represented on the Boardof Directors of the Exchange and also on various committees set up by the Exchange to ensuregood corporate governance. Some of them have also lent their personnel to provide technicalsupport to the Exchange management. The day-to-day operations of the Exchange are managedby the experienced and qualified professionals with impeccable integrity and expertise. None ofthem have any trading interest. The structure of NMCE is impossible to replicate in India.

NMCE is unique in many other respects. It is a zero-debt company; following widely acceptedprudent accounting and auditing practices. It has robust delivery mechanism making it the mostsuitable for the participants in the physical commodity markets. The exchange does notcompromise on its delivery provisions to attract speculative volume. Public interest rather thancommercial interest guide the functioning of the Exchange. It has also established fair andtransparent rule-based procedures and demonstrated total commitment towards eliminating anyconflicts of interest. It is the only Commodity Exchange in the world to have received ISO9001:2000 certification from British Standard Institutions (BSI).

NMCE commenced futures trading in 24 commodities on 26th November, 2002 on a nationalscale and the basket of commodities has grown substantially since then to include cash crops,food grains, plantations, spices, oil seeds, metals & bullion among others. Research Desk ofNMCE is constantly in the process of identifying the hedging needs of the commodity economyand the basket of products is likely to grow even further. NMCE has also made immensecontribution in raising awareness about and catalyzing implementation of policy reforms in thecommodity sector. NMCE was the first Exchange to take up the issue of differential treatment ofspeculative loss. It was also the first Exchange to enroll participation of high net-worth corporatesecurities brokers in commodity derivatives market. It was the Exchange, which showed a way tointroduce warehouse receipt system within existing legal and regulatory framework. It was thefirst Exchange to complete the contractual groundwork for dematerialization of the warehouse

receipts. Innovation is the way of life at NMCE.

http://www.nmce.com/about_us/about_us.jsp

Derivatives
http://www.nmce.com/about_us/about_us.jsphttp://www.nmce.com/about_us/about_us.jsp


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In financederivatives is the collective name used for a broad class offinancial instruments thatderive their value from other financial instruments (known as the underlying), events orconditions.

Derivatives are usually broadly categorised by:

The relationship between the underlying and the derivative (e.g. forward,option, swap)

The type of underlying (e.g. equity derivatives,foreign exchange derivatives, interest ratederivatives orcredit derivatives)

The market in which they trade (e.g., exchange traded orover-the-counter)

Derivatives are used by investors to

provide leverage or gearing, such that a small movement in the underlying value cancause a large difference in the value of the derivative

speculate and to make a profit if the value of the underlying asset moves the way theyexpect (e.g. moves in a given direction, stays in or out of a specified range, reaches acertain level)

hedge or mitigate risk in the underlying, by entering into a derivative contract whosevalue moves in the opposite direction to their underlying position and cancels part or allof it out

obtain exposure to underlying where it is not possible to trade in the underlying (e.g.weather derivatives)

create optionality where the value of the derivative is linked to a specific condition orevent (e.g. the underlying reaching a specific price level)

Uses

Hedging

Hedging is a technique that attempts to reduce risk.

Derivatives allow risk about the price of the underlying asset to be transferred from one party toanother. For example, a wheat farmer and a miller could sign a futures contract to exchange aspecified amount of cash for a specified amount of wheat in the future. Both parties have reduceda future risk: for the wheat farmer, the uncertainty of the price, and for the miller, the availabilityof wheat. However, there is still the risk that no wheat will be available because of eventsunspecified by the contract, like the weather, or that one party will renege on the contract.Although a third party, called a clearing house, insures a futures contract, not all derivatives areinsured against counterparty risk.

From another perspective, the farmer and the miller both reduce a risk and acquire a risk whenthey sign the futures contract: The farmer reduces the risk that the price of wheat will fall belowthe price specified in the contract and acquires the risk that the price of wheat will rise above theprice specified in the contract (thereby losing additional income that he could have earned). Themiller, on the other hand, acquires the risk that the price of wheat will fall below the pricespecified in the contract (thereby paying more in the future than he otherwise would) and reduces
http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Underlyinghttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Equity_derivativehttp://en.wikipedia.org/wiki/Foreign_exchange_derivativehttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Credit_derivativeshttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Optionhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Millerhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Clearing_house_(finance)http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Financial_instrumenthttp://en.wikipedia.org/wiki/Underlyinghttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Equity_derivativehttp://en.wikipedia.org/wiki/Foreign_exchange_derivativehttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Credit_derivativeshttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Optionhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Millerhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Clearing_house_(finance)


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the risk that the price of wheat will rise above the price specified in the contract. In this sense,one party is the insurer (risk taker) for one type of risk, and the counterparty is the insurer (risktaker) for another type of risk.

Hedging also occurs when an individual or institution buys an asset (like a commodity, a bondthat has coupon payments, a stock that pays dividends, and so on) and sells it using a futures

contract. The individual or institution has access to the asset for a specified amount of time, andthen can sell it in the future at a specified price according to the futures contract. Of course, thisallows the individual or institution the benefit of holding the asset while reducing the risk that thefuture selling price will deviate unexpectedly from the market's current assessment of the futurevalue of the asset.

Derivatives serve a legitimate business purpose. For example a corporation borrows a large sumof money at a specific interest rate.[1] The rate of interest on the loan resets every six months. Thecorporation is concerned that the rate of interest may be much higher in six months. Thecorporation could buy a forward rate agreement (FRA). A forward rate agreement is a contract topay a fixed rate of interest six months after purchases on a notional sum of money. [2] If theinterest rate after six months is above the contract rate the seller pays the difference to the

corporation, or FRA buyer. If the rate is lower the corporation would pay the difference to theseller. The purchase of the FRA would serve to reduce the uncertainty concerning the rateincrease and stabilize earnings.

Speculation and arbitrage

Derivatives can be used to acquire risk, rather than to insure or hedge against risk. Thus, someindividuals and institutions will enter into a derivative contract to speculate on the value of theunderlying asset, betting that the party seeking insurance will be wrong about the future value ofthe underlying asset. Speculators will want to be able to buy an asset in the future at a low priceaccording to a derivative contract when the future market price is high, or to sell an asset in thefuture at a high price according to a derivative contract when the future market price is low.

Individuals and institutions may also look forarbitrage opportunities, as when the current buyingprice of an asset falls below the price specified in a futures contract to sell the asset.

Speculative trading in derivatives gained a great deal of notoriety in 1995 whenNick Leeson, atrader at Barings Bank, made poor and unauthorized investments in futures contracts. Through acombination of poor judgment, lack of oversight by the bank's management and by regulators,and unfortunate events like the Kobe earthquake, Leeson incurred a $1.3 billion loss thatbankrupted the centuries-old institution.[3]

Types of derivatives

OTC and exchange-traded

Broadly speaking there are two distinct groups of derivative contracts, which are distinguished

by the way they are traded in the market:

Over-the-counter (OTC) derivatives

OTC are contracts that are traded (and privately negotiated) directly between two parties, withoutgoing through an exchange or other intermediary. Products such as swaps, forward rateagreements, and exotic options are almost always traded in this way. The OTC derivative marketis the largest market for derivatives, and is largely unregulated with respect to disclosure ofinformation between the parties, since the OTC market is made up of banks and other highly
http://en.wikipedia.org/wiki/Coupon_(bond)http://en.wikipedia.org/wiki/Arbitragehttp://en.wikipedia.org/wiki/1995http://en.wikipedia.org/wiki/Nick_Leesonhttp://en.wikipedia.org/wiki/Barings_Bankhttp://en.wikipedia.org/wiki/Kobe_earthquakehttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Forward_rate_agreementhttp://en.wikipedia.org/wiki/Forward_rate_agreementhttp://en.wikipedia.org/wiki/Exotic_optionhttp://en.wikipedia.org/wiki/Coupon_(bond)http://en.wikipedia.org/wiki/Arbitragehttp://en.wikipedia.org/wiki/1995http://en.wikipedia.org/wiki/Nick_Leesonhttp://en.wikipedia.org/wiki/Barings_Bankhttp://en.wikipedia.org/wiki/Kobe_earthquakehttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Forward_rate_agreementhttp://en.wikipedia.org/wiki/Forward_rate_agreementhttp://en.wikipedia.org/wiki/Exotic_option


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sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult becausetrades can occur in private, without activity being visible on any exchange. According to theBank for International Settlements, the total outstanding notional amount is $684 trillion (as ofJune 2008).[4] Of this total notional amount, 67% are interest rate contracts, 8% are credit defaultswaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equitycontracts, and 12% are other. Because OTC derivatives are not traded on an exchange, there isno central counterparty. Therefore, they are subject to counterparty risk, like an ordinarycontract, since each counterparty relies on the other to perform.

Exchange-traded derivatives

ETD are those derivatives products that are traded via specialized derivatives exchanges or otherexchanges. A derivatives exchange acts as an intermediary to all related transactions, and takesInitial margin from both sides of the trade to act as a guarantee. The world's largest [5] derivativesexchanges (by number of transactions) are the Korea Exchange (which lists KOSPI IndexFutures & Options), Eurex (which lists a wide range of European products such as interest rate &index products), and CME Group (made up of the 2007 merger of the Chicago MercantileExchange and the Chicago Board of Trade and the 2008 acquisition of theNew York Mercantile

Exchange). According to BIS, the combined turnover in the world's derivatives exchangestotaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade ontraditional exchanges. For instance, hybrid instruments such as convertible bonds and/orconvertible preferred may be listed on stock or bond exchanges. Also, warrants (or "rights") maybe listed on equity exchanges. Performance Rights, Cash xPRTs and various other instrumentsthat essentially consist of a complex set of options bundled into a simple package are routinelylisted on equity exchanges. Like other derivatives, these publicly traded derivatives provideinvestors access to risk/reward and volatility characteristics that, while related to an underlyingcommodity, nonetheless are distinctive.

Derivative contract types

There are three major classes of derivatives:
http://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Credit_default_swaphttp://en.wikipedia.org/wiki/Credit_default_swaphttp://en.wikipedia.org/wiki/Counterpartyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Derivatives_exchangehttp://en.wikipedia.org/wiki/Initial_marginhttp://en.wikipedia.org/wiki/Korea_Exchangehttp://en.wikipedia.org/wiki/KOSPIhttp://en.wikipedia.org/wiki/Eurexhttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chicago_Board_of_Tradehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Warrant_(finance)http://en.wikipedia.org/wiki/Hedge_fundshttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Interest_rate_derivativehttp://en.wikipedia.org/wiki/Credit_default_swaphttp://en.wikipedia.org/wiki/Credit_default_swaphttp://en.wikipedia.org/wiki/Counterpartyhttp://en.wikipedia.org/wiki/Contracthttp://en.wikipedia.org/wiki/Derivatives_exchangehttp://en.wikipedia.org/wiki/Initial_marginhttp://en.wikipedia.org/wiki/Korea_Exchangehttp://en.wikipedia.org/wiki/KOSPIhttp://en.wikipedia.org/wiki/Eurexhttp://en.wikipedia.org/wiki/CME_Grouphttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chicago_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Chicago_Board_of_Tradehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/New_York_Mercantile_Exchangehttp://en.wikipedia.org/wiki/Warrant_(finance)


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DERIVATIVESOptionsFuturesSwapsForwardsCommoditySecurityInterest RateCurrency

Futures/Forwards

Futures/Forwards are contracts to buy or sell an asset on or before a future date at a pricespecified today. A futures contract differs from a forward contract in that the futures contract is astandardized contract written by a clearing house that operates an exchange where the contractcan be bought and sold, while a forward contract is a non-standardized contract written by theparties themselves.

Options

Options are contracts that give the owner the right, but not the obligation, to buy (in the case of acall option) or sell (in the case of aput option) an asset. The price at which the sale takes place isknown as the strike price, and is specified at the time the parties enter into the option. The optioncontract also specifies a maturity date. In the case of a European option, the owner has the right

PutCall
http://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Contractshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Clearing_house_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Strike_pricehttp://en.wikipedia.org/wiki/European_optionhttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Futures_contracthttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Contractshttp://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Clearing_house_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Option_(finance)http://en.wikipedia.org/wiki/Call_optionhttp://en.wikipedia.org/wiki/Put_optionhttp://en.wikipedia.org/wiki/Strike_pricehttp://en.wikipedia.org/wiki/European_option


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to require the sale to take place on (but not before) the maturity date; in the case of an Americanoption, the owner can require the sale to take place at any time up to the maturity date. If theowner of the contract exercises this right, the counterparty has the obligation to carry out thetransaction.

Swaps

Swaps are contracts to exchange cash (flows) on or before a specified future date based on theunderlying value of currencies/exchange rates, bonds/interest rates, commodities, stocks or otherassets.

More complex derivatives can be created by combining the elements of these basic types. Forexample, the holder of a swaption has the right, but not the obligation, to enter into a swap on orbefore a specified future date.

http://en.wikipedia.org/wiki/Derivative _(finance)
http://en.wikipedia.org/wiki/American_optionhttp://en.wikipedia.org/wiki/American_optionhttp://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Swaptionhttp://en.wikipedia.org/wiki/American_optionhttp://en.wikipedia.org/wiki/American_optionhttp://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Swap_(finance)http://en.wikipedia.org/wiki/Swaption


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RESEACH TOPIC :COMMODITY MARKET TREND IN INDIA


25/48

PROBLEM STATEMENT:To study Commodity Market Trend in India .

OBJECTIVES OF THE STUDY: PRIMARY OBJECTIVE:

To know the trends of the commodity market in India with of some specific

commodities.

SECONDARY OBJECTIVES: To know the seasonal impact on gold.

To know the seasonal impact on silver.

To know the seasonal impact on crude oil.

To know the seasonal impact on copper.

LITERATURE REVIEW OF STUDYThe biennial publication Commodity Market Review (CMR) analyses important

agricultural commodity market developments likely to have significant implications for

FAO member countries, both developed and developing. This issue of the Review is

devoted to exploring in depth a variety of issues related to global agricultural commodity

value chains. Value chains have become more complex as production and processing

activities turn out to be increasingly fragmented. Moreover, concentration and theprospective of market power, as well as the emergent scope of food standards add to this

complexity. This issue includes articles that focus on both cross-commodity issues, such

as strategic trade, foreign direct investment and the effectiveness of technical regulation,

as well as on characteristics of individual commodity value chains, such as coffee, cocoa

and frozen concentrated orange juice, which are of particular interest in terms of

industrial organization

RESEACH DESIGN:Descriptive study will take place for this research topic, as the Row data are used in my

study. Research design is the plan and structure of investigation so as to obtain the answer to

research questions.

I have used descriptive research design. As my project will describe the situation of the

return on the different commodities, the raw data of the spot prices of the commodities are


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used.

DATA SOURCE:Secondary data has been used in this research. It is mainly collected from the mcxindia.com

website and from ncdex.com website and mcx literature.

ANALYSIS TOOLS AND TECHNICS:The following methods will be used in this research work.

Time series analysis.

Secular trend method.

Seasonal variation method.

3 monthly Moving average.

SCOPE OF THE STUDY:Commodity market is the most emerging and potential market in India. Day by day many

new commodities are added for trading in commodity market. Commodity markets

provide an avenue for their sale. From knowing the trend of the commodity market,

future prediction about return can be determined and by study of the seasonal

impact, general time period for investment and withdrawal of it can also be

determined. The scopes the e of the study was restricted to the objectives stated earlier.

LIMITATIONS OF THE STUDY: The various sources utilized for the study, which include, websites, information from

commodity trackers; Market watchers are subject to personal biases.

Historical price data of several commodities is not available on the various exchanges and

not even at FMC source.

It does not become possible for me to take all commodities for the research, due to some

constrains. So, I have to take some specific commodities for this research.

The limitations of the various methods of the time series analysis, is the main limitation of

this research.


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GOLD TREND

Gold is a unique asset based on few basic characteristics. It is primarily a monetary asset, and

partly a commodity. It is an internationally recognized asset that is not dependent upon any

governments promise to pay.


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INDIAN GOLD MARKET:

Gold is valued in India as a savings and investment vehicle and is the second preferred

investment after bank deposits. India is the world's largest consumer of gold in jewellery as

investment. In July 1997 the RBI authorized the commercial banks to import gold for sale or

loan to jewelers and exporters. At present, 13 banks are active in the import of gold. This

reduced the disparity between international and domestic prices of gold from 57 percent during

1986 to 1991 to 8.5 percent in 2001. Domestic consumption is dictated by monsoon, harvest and

marriage season. Indian jewellery off take is sensitive to price increases and even more so to

volatility. In the cities gold is facing competition from the stock market and a wide range of

consumer goods. Facilities for refining, assaying, making them into standard bars in India, as

compared to the rest of the world, are insignificant, both qualitatively and quantitatively.

MARKET MOVING FACTORS:

Above ground supply from sales by central banks, reclaimed scrap and official

gold loans.

Producer / miner hedging interest.

World macro-economic factors - US Dollar, Interest rate.

Comparative returns on stock markets.

Domestic demand based on monsoon and agricultural output

Table of gold trend

Date return % trend % short termvariable

2008 jan 10.3497

2008 feb 5.9487 -0.480687

6

6.429387607

2008march

-4.0257 4.80074444

-8.826444444

2008 apr -4.2929 -3.465138

-0.827761111


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9

2008 may 7.0181 0.09233333

6.925766667

2008 jun 6.4204 -1.202938

3

7.623338272

2008 jul -2.0341 6.16480988

-8.198909877

2008 aug -5.6701 -5.436804

9

-0.233295062

2008 sep 10.8571 0.05234359

10.80475641

2008 oct -12.8904 3.32190171

-16.21230171

2008 nov 12.4582 -4.628675

2

17.08687521

2008 dec 4.3165 0.52433761

3.792162393

2009 jan 5.49975 -2.481335

5

7.98108547

2009 feb 7.8914 3.45497863

4.436421368

2009march

-2.5314 3.96573718

-6.497137179

2008 apr -4.0489 -

3.2346325

-0.814267521

2009 may 4.4857 0.31907265

4.16662735

2009 jun -2.9156 -0.163910

7

-2.751689269

2009 jul 2.4076 -0.488296

5

2.895896486

2009 aug 2.1752 -1.839931

2

4.015131244

2009 sep 3.9796 2.11254872

1.867051282

2009 oct 1.6304 -3.373472

2

5.003872222

2009 nov 10.1908 3.53803333

6.652766667


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2009 dec -5.558

Chart of gold trend :

INTERPRITATION:

The chart of the trend analysis shows the overall trend of the returns, yield on the gold during a

span of two years. From the chart it is clear that in most of the time the trend of the gold gives

positive returns. And this trend does not moves parallel. It is also seen in the chart that the return

remains high between 2008 January , September , November and 2009 November And thereturn remains low during 2008 October. Short term variation trend indicates thatin few cases, it

is found that the short term variation is higher, otherwise it remains comparatively minor. Thus

ultimately the overall position of the trend of the golds return is satisfactory.

SEASONAL VARIANCEIt is worth noting to know the seasonal variations for any commodity so that it can be possible to

take the benefits of trading for the time period, which can give the maximum return. Seasonal

variation analysis also helps to divide the total yield return according to their proportion to the

monthly basis so that it become possible to know about the time period which gives the

maximum as well as minimum return.

Table of gold seasonal index


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month return % 2 yearlyavr

seasonalindex

2008 2009JANUARY 10.3497 5.4997

57.924725 23.774175

FERUARY

5.9487 7.8914 6.92005 20.76015MARCH -4.0257 -2.5314

-3.27855 -9.83565

APRIL -4.2929 -4.0489

-4.1709 -12.5127

MAY 7.0181 4.4857 5.7519 17.2557JUNE 6.4204 -

2.91561.7524 5.2572

JULY -2.0341 2.4076 0.18675 0.56025AUGUST -5.6701 2.1752 -1.74745 -5.24235SEPETEMBER 10.8571 3.9796 7.41835 22.25505OCTOMBER

-12.8904 1.6304 -5.63 -16.89NOVEMBER 12.4582 10.1908

11.3245 33.9735

DECEMBER 4.3165 -5.558 -0.62075 -1.86225

Chart of gold seasonal index :

INTERPRITATION:


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The above chart shows the general tendency of the returns, which can be yield from the gold for

a specific period of time during the year. They also show that it is wisely to invest for the traders

and investors in gold for 2008 October to 2009 February & 2009 July to 2009 November, as the

returns during them remains high and it is also clear that the return between 2008 July to 2008

October & 2009 March to June remains not high. Thus, it is not beneficial for the investor to

invest during this period. The chart also indicates that the maximum return can be earned in the

January and November. The festival of DIWALI generally occurs during the October-November,

and it is very much clear that during these months, returns on gold remains comparatively high.

Thus, we can say that such kinds of festivals make an impact on the gold. The seasonal index

continuously falls towards downward after February to April . Indian budget declared on the last

day of February. Thus the events like budget may also make an impact on it.

SILVER TREND

INTRODUCTION:

Silver's unique properties make it a very useful 'Industrial Commodity', despite it being classed

as a precious metal. The price of silver is not only a function of its primary output but more a

function of the price of other metals also, as world mine production is more a function of the


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prices of other metals. The tie between silver and economic activity is strong, given that around

two-thirds of total silver fabrication is in the industrial and photographic sectors.

INDIAN SCENARIO:

Silver imports into India for domestic consumption in 2002 was 3,400 tons down 25 % from

record 4,540 tons in 2001. Open General License (OGL) imports are the only significant source

of supply to the Indian market. Non-duty paid silver for the export sector rose sharply in 2002,

up by close to 200% year-on-year to 150 tons. Around 50% of India's silver requirements last

year were met through imports of Chinese silver and other important sources of supply being

UK, CIS, Australia and Dubai. Indian industrial demand in 2002 is estimated at 1375 tons down

by 13 % from 1,579 tons in 2001. In spite of this fall, India is still one of the largest users of

silver in the world, ranking alongside Industrial giants like Japan and the United States. In India

silver price volatility is also an important determinant of silver demand as it is for gold.

Table of gold trendYEARS return % TREN

D IN%

SHORTTERMVARIABLE

2008 JAN 11.1931

2008 FEB 14.2784 -2.3739

9

16.65239

2008MARCH

-9.0181 14.26395

-23.2821

2008 APRIL -1.5709 -7.2213

2

5.650424

2008 MAY 4.9663 -0.5440

3

5.510333

2008 JUNE 4.3665 -3.2252

7.591754


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5

2008 JULY 2.82 17.98071

-15.1607

2008 AUG -17.2523

-6.5068

6

-10.7454

2008 SEP -2.714 -0.8970

9

-1.81691

2008 OCT -16.4031

-1.4364

6

-14.9666

2008 NOV -0.7042 -5.7525

9

5.048385

2008 DEC 9.3275 -3.1865

9

12.51409

2009 JAN 7.6752 -4.9973

4

12.67254

2009 FEB 10.202 7.808141

2.393859

2009 MAR -1.0414 6.359936

-7.40134

2009 APR -2.2064 -10.150

4

7.944018

2009 MAY 18.2204 4.045932 14.17447

2009 JUNE -10.083 5.510088

-15.5931

2009JULY 2.9225 -8.2956

9

11.21819

2009 AUG 6.0405 -5.9481

5

11.98865

2009 SEP 11.3324 8.967503

2.364897

2009 OCT -1.9583 17.59395

-19.5522

2009NOV 7.8094 -34.815

2

42.6246

2009 DEC -5.4929


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Chart of silver trend

INTERPRITATION:

The chart and table, shows the overall trend of the returns, yield on the silver during a span of

two years. It is also seen in the chart that the return remains high between 2008 January,

February, 2009 February, May, September and the return remains low during 2008 March

,April ,2009 January. Short-term variation trend indicates that Short-term variation in Silverremains higher in the normal cases and the trend does not follow a regular pattern also, so that it

is wisely not to do investment decision for the silver on the basis of its trend analysis.

Seasonal variable

Table of silver seasonal index

month return % 2 yearlyavr

seasonal index

2008 2009JANUARY 11.1931 7.6752 9.43415 28.30245FERUARY 14.2784 10.202 12.2402 36.7206MARCH -9.0181 -1.0414 -

5.02975-15.08925

APRIL -1.5709 -2.2064 -1.88865

-5.66595

MAY 4.9663 18.2204 11.5933 34.78005


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5JUNE 4.3665 -10.083 -

2.85825-8.57475

JULY 2.82 2.9225 2.87125 8.61375AUGUST -17.2523 6.0405 -5.6059 -16.8177SEPETEMBER -2.714 11.3324 4.3092 12.9276OCTOMBER -16.4031 -1.9583 -9.1807 -27.5421

NOVEMBER -0.7042 7.8094 3.5526 10.6578DECEMBER 9.3275 -5.4929 1.9173 5.7519

Chart of silver seasonal index

INTERPRITATION:

From the table it is very much clear, the general tendency of the returns, which can be yield from

the silver for a specific period of time during the year. They also show that it is wisely to invest

in the silver for the months during November to February, as the returns remains good between

these months and the return remains low between March to October, so, it is not beneficial for

the investor to invest during this period. It is also clear that November and January are the two

months, which yields the maximum returns. The impact of the DIWALI is also seen here.


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COPPER TREND

Introduction :

Copper ranks third in world metal consumption after steel and aluminum. It is a product whose

fortunes directly reflect the state of the world's economy.

INDIAN SCENARIO:

The size of Indian Copper Industry is around 4 lakh tons, which as percentage of world copper

market is 3 %. Birla Copper, Sterilite Industries are two major private producers and Hindustan

Copper Ltd the public sector producers. India is emerging as net exporter of copper from the

status of net importer on account of rise in production by three companies. Copper goes into

various usages such as Building, Cabling for power and telecommunications, Automobiles etc.

Two major states owned telecommunications service providers; BSNL and MTNL consume 10%


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of country's copper production. Growth in the building construction and automobile sector would

keep demand of copper high.

FACTORS INFLUANCES COPPER MARKET:

World copper mine production through exploration of new mine and expansion of existing

mine. Economic growth of the major consuming countries such as China, Japan, Germany

etc. Growth & development in the Building, electronics and electrical industry.

Table of copper trend

YEARS RETURN%

TREND SHORT TERMVARIABLE

2008 JAN 7.9902

2008 FEB 18.3039 3.389585 14.91431

2008 MARCH 2.5379 5.457291 -2.919392008 APRIL 4.0422 1.119931 2.922269

2008 MAY -2.2496 0.172488 -2.42209

2008 JUNE 8.9745 -0.75395 9.728451

2008 JULY -6.0825 11.00993 -17.0924

2008 AUG -4.5792 -6.71737 2.138173

2008 SEP -7.7111 23.38746 -31.0986

2008 OCT -31.8121 -9.23616 -22.5759

2008 NOV -8.6745 -6.87254 -1.80196

2008 DEC -19.2012 -11.5323 -7.66888

2009 JAN 1.7096 0.397382 1.312218

2009 FEB 10.8245 -8.88964 19.71414

2009 MAR 19.3659 -0.11213 19.47803

2009 APR 7.7723 10.14097 -2.36867

2009 MAY 0.4383 -5.20341 5.641706

2009 JUNE 3.6763 0.668744 3.007556

2009JULY 12.2258 -10.2458 22.47157

2009 AUG 9.5384 13.74538 -4.20698

2009 SEP -3.5389 2.533077 -6.07198

2009 OCT 3.4083 -6.1726 9.580896

2009NOV 4.4851 1.684128 2.800972

2009 DEC 6.0746

Chart of copper seasonal index


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INTERPRITATION:The chart shows the overall trend of the returns, yield on the copper during a span of two years.

It is also seen in the chart that the return remains high between 2008 February, 2009 February,

March, July , August. and the return remains low during 2008 October , December . The trend of

the copper is not seemed to be paralleled moving. Short-term variation trend indicates that Short-

term variation in crude oil remains high in few cases, otherwise it remains comparatively minor.

it is also clear that the overall trend for the return for the copper remains satisfactory with regards

to its comparatively low investments.

Table of copper seasonal index

MONTH RETURN IN% 2 YEARLYAVERAGE SEASONALINDEX2008 2009

JANUARY 7.9902 1.7096 4.8499 14.5497FERUARY 18.3039 10.8245 14.5642 43.6926MARCH 2.5379 19.3659 10.9519 32.8557APRIL 4.0422 7.7723 5.90725 17.72175MAY -2.2496 0.4383 -0.90565 -2.71695JUNE 8.9745 3.6763 6.3254 18.9762JULY -6.0825 12.2258 3.07165 9.21495AUGUST -4.5792 9.5384 2.4796 7.4388SEPETEMBER -7.7111 -3.5389 -5.625 -16.875OCTOMBER -31.8121 3.4083 -14.2019 -42.6057NOVEMBER -8.6745 4.4851 -2.0947 -6.2841DECEMBER -19.2012 6.0746 -6.5633 -19.6899


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Chart of copper seasonal index

INTERPRITATION:

From the table is very much clear, the general tendency of the returns, which can be yield from

the copper for a specific period of time during the year. They also show that it is wisely to invest

in copper for January to August, as the returns between them remains good and it is also clear

that the return between September to December remains lower so, it is not beneficial for the

investor to invest during this period. it is also clear that the price of the copper is comparatively

lower then other precious metals and the return yield on it is also not bad. Thus small investors

can also take advantage of the trading in the copper, especially in during January to June.

CRUDE OIL TREND

Crude oil is a mixture of hydrocarbons that exists in a liquid phase in natural undergroundreservoirs. Oil and gas account for about 60 per cent of the total world's primary energy

consumption. Almost all industries including agriculture are dependent on oil in one way or

other. Oil & lubricants, transportation, petrochemicals, pesticides and insecticides, paints,

perfumes, etc. are largely and directly affected by the oil prices. The prices of crude are highly

volatile. High oil prices lead to inflation that in turn increases input costs; reduces non-oil

demand and lower investment in net oil importing countries.

INDIAN SCENARIO

India ranks among the top 10 largest oil-consuming countries. Oil accounts for about 30 per cent

of India's total energy consumption. The country's total oil consumption is about 2.2 million

barrels per day. India imports about 70 per cent of its total oil consumption and it makes no

exports. India faces a large supply deficit, as domestic oil production is unlikely to keep pace

with demand. India's rough production was only 0.8 million barrels per day. The oil reserves of

the country (about 5.4 billion barrels) are located primarily in Mumbai High, Upper Assam,


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Cambay,Krishna-Godavari and Cauvery basins. Balance recoverable reserve was about 733

million tones (in 2003) of which offshore was 394 million tones and on shore was 339 million

tones. India had a total of 2.1 million barrels per day in refining capacity. Government has

permitted foreign participation in oil exploration, an activity restricted earlier to state owned

entities. Indian government in 2002 officially ended the Administered Pricing Mechanism

(APM). Now crude price is having a high correlation with the international market price. As on

date, even the prices of crude bi-products are allowed to vary +/- 10% keeping in line with

international crude price, subject to certain government laid down norms/ formulae.

Disinvestment/restructuring of public sector units and complete deregulation of Indian retail

petroleum products sector is under way.

MARKET INFLUANCING PRICE: OPEC output and supply.

Terrorism, Weather/storms, War and any other unforeseen geopolitical factors that

causes supply disruptions.

Global demand particularly from emerging nations.

Dollar fluctuations.

Refinery fires & funds buying.

TABLE OF CRUDE OIL TREND


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CHART OF CRUDE OIL TREND

INTERPRITATION:

The chart shows the overall trend of the returns, yield on the crude oil during a span of two

years. From the chart it is clear that in most of the time the trend of the crude oil gives positive

returns. It is also seen in the chart that the returns remains high between 2008 February , April ,

May , June , 2009 January , April and the return remains low during2008 July , October ,

November , December.The trend of crude oil is seemed moving parallel .Chart also indicates that

Date retunn % TREND IN % short termvariable

2008 JAN -5.4878

20008 FEB 12.8391 -1.068950427 13.90805043

2008 MARCH 0.2463 0.745116239 -0.498816239

2008 APR 11.665 -2.154188034 13.819188032008 MAY 19.4019 1.076716239 18.32518376

2008 JUN 13.4802 1.761866667 11.71833333

2008 JULY -12.5226 2.423822222 -14.94642222

2008 AUG -3.0652 -1.375536752 -1.689663248

2008 SEP -7.6863 2.128046154 -9.814346154

2008 OCT -36.7398 -0.143643162 -36.59615684

2008 NOV -14.8527 -0.574893162 -14.27780684

2008 DEC -27.1 -2.711463675 -24.38853632

2009 JAN 20.2481 0.058824786 20.18927521

2009 FEB -1.4894 -0.662264957 -0.8271350432009 MARCH 4.7277 0.380544872 4.347155128

2009 APR 10.2615 -0.667286325 10.92878632

2009 MAY 7.0796 -0.254690171 7.334290171

2009 JUN 5.1067 2.238917379 2.867782621

2009 JULY -4.5799 -2.042880912 -2.537019088

2009 AUG 9.1491 1.380676353 7.768423647

2009 SEP -3.691 -0.604789744 -3.086210256

2009 OCT 8.0317 0.206794872 7.824905128

2009 NOV -5.6102 0.767051282 -6.377251282

2009 DEC 4.3977


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from the 2009 March to up till now the return yield on crude oil rises continuously. Short-term

variation trend indicates that Short-term variation in crude oil remains high.

SEASONAL INDEX

SEASONAL INDEX OF CRUDE OIL

month return 2 years 2 yearlyavr

seasonalindex

2008 2009JANUARY -5.4878 20.248

114.7603 7.38015 22.14045

FERUARY 12.8391 -1.4894 11.3497 5.67485 17.02455MARCH 0.2463 4.7277 4.974 2.487 7.461APRIL 11.665 10.261

521.9265 10.96325 32.88975

MAY 19.4019 7.0796 26.4815 13.24075 39.72225JUNE 13.4802 5.1067 18.5869 9.29345 27.88035JULY -12.5226 -4.5799 -17.1025 -8.55125 -25.65375AUGUST -3.0652 9.1491 6.0839 3.04195 9.12585SEPETEMBER -7.6863 -3.691 -11.3773 -5.68865 -17.06595OCTOMBER -36.7398 8.0317 -28.7081 -14.35405 -43.06215

NOVEMBER -14.8527 -5.6102 -20.4629 -10.23145 -30.69435DECEMBER -27.1 4.3977 -22.7023 -11.35115 -34.05345

CHART OF CRUDE OIL SEASONAL INDEX

INTERPRITATION:

From above chart it is very much clear, the general tendency of the returns, which can be yield

from the crude oil for a specific period of time during the year. They also show that it is wisely


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to invest in crude oil for January to August, as the returns between them remains high and the

return between September to December is low so, it is not beneficial for the investor to invest

during this period. but in the case of crude oil, it shows minimum returns during these of two

years .


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final project combine all data in comodity market

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