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Study on

“STUDY ON PERCEPTION OF INVESTORS TOWARDSCOMMODITY MARKET”

Submitted in Partial Fulfillment of the Requirements of

ALL INDIA MANAGEMENT ASSOCIATION

POST GRADUATION DIPLOMA IN MANAGEMENT

By

SWATI SMITI NANDA

REG. No: 420820511

Under the Guidance of

Dr. Ranganatham.G

Acharya Institute of Management &Sciences

1st Cross, 1st Stage, Peenya Industrial AreaBangalore – 560 058



2008 - 2010

DECLARATION

I, Swati Smiti Nanda, here by declare that this dissertation titled, STUDY ON

PERCEPTION OF INVESTORS TOWARDS COMMODITY MARKET is based

on the original project study conducted by me under the guidance of Dr.

Ranganatham.G

This has not been submitted earlier for the award of any other degree /

diploma by Acharya Institute of Management and Sciences.

Place: Bangalore

Date: SWATI SMITI NANDA

2



CERTIFICATE FROM THE GUIDE

Certified that this dissertation STUDY ON PERCEPTION OF INVESTORS

TOWARDS COMMODITY MARKET is based on an original project study

conducted by SWATI SMITI NANDA of IV Semester PGDM under my guidance.

This dissertation has not formed the basis for the award of any other degree / diploma by

Acharya Institute of Management and Science.

Place: Bangalore

Date: Dr. Ranganatham.G

3



LIST OF CONTENTS

CHAPTERS CONTENTSPAGENO.

1 INTRODUCTIONIntroduction

2 RESEARCH METHODOLOGY

Statement of the ProblemScope of the StudyObjective of the studyLiterature ReviewResearch designPopulation and samplingtechniqueSample designLimitations of StudyChapter Layout

3 INDUSTRY PROFILE

4 ANALYSIS AND INTERPRETATIONOF DATA

5 FINDINGS

CONCLUSIONS AND SUGGESTIONS

BIBLIOGRAPHY

4



ACKNOWLEDGEMENT

I would like to thank Prof. Ms. Kiran Reddy, Principal, Acharya Institute of

Management and Sciences, Bangalore for giving me an opportunity to conduct this

study.

I would also like o express my sincere thanks to Dr. Ranganatham.G Faculty,MBA

Department, Acharya Institute of Management and Sciences, Bangalore for providing

necessary insight and guidance.

I would also like to express my sincere thanks to my parents who gave me the necessary

financial and moral support during the course of my project. Last but not the least; I am

grateful to my respondents who have provided me valuable information needed for the

successful completion of this project.

Place: Bangalore Swati Smiti Nanda

Date:

5



CERTIFICATE

Certified that this dissertation titled STUDY ON PERCEPTION OF INVESTORS

TOWARDS COMMODITY MARKET is based on the study conducted by SWATI

SMITI NANDA of IV Semester PGDM under the guidance of . Dr.

Ranganatham.G.

This dissertation is based on the original project study undergone and has not formed the

basis for the award of any other degree/diploma by Bangalore University or any other

University.

Dr M. Ranganathan Ms. Kiran Reddy

Professor - PGDM Principal

Place: Bangalore Place: Bangalore

Date: Date:

6



CHAPTER-1 INTRODUCTION

7



1.1 GENERAL INTRODUCTION

Commodity markets are markets where raw or primary products are exchanged. These

raw commodities are traded on regulated commodities exchanges, in which they are

bought and sold in standardized contracts.

The modern commodity markets have their roots in the trading of agricultural products.

While wheat and corn, cattle and pigs, were widely traded using standard instruments in

the 19th century in the United States, other basic foodstuffs such as soybeans and wheat

were only added quite recently in most markets. For a commodity market to be

established there must be very broad consensus 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 over-

estimate. Through the 19th century "the exchanges became effective spokesmen for, and

innovators of, improvements in transportation, warehousing, and financing, which paved

the way to expanded interstate and international trade."

1.2 History of commodity markets

The history of organized commodity derivatives in India goes back to the nineteenth

century when the Cotton Trade Association started futures trading in 1875, barely about

a decade after the commodity derivatives started in Chicago. Over time the derivatives

market developed in several other commodities in India. Following cotton, derivatives

trading started in oilseeds in Bombay (1900), raw jute and jute goods in Calcutta (1912),

wheat in Hapur (1913) and in Bullion in Bombay (1920). However, many feared that

derivatives fuelled unnecessary speculation in essential commodities, and were

detrimental to the healthy functioning of the markets for the underlying commodities,

and hence to the farmers. With a view to restricting speculative activity in cotton market,

the Government of Bombay prohibited options business in cotton in 1939. Later in 1943,

forward trading was prohibited in oilseeds and some other commodities including food-

grains, spices, vegetable oils, sugar and cloth. After Independence, the Parliament

passed Forward Contracts (Regulation) Act, 1952 which regulated forward contracts in

8





market, various financial instruments based on commodities are traded. These financial

instruments such as 'futures' are traded in exchanges like Multi Commodity Exchange

(MCX) and National Commodity Derivatives Exchange (NCDEX).

India is among the top-5 producers of most of the commodities, in addition to being a

major consumer of bullion and energy products. Agriculture contributes about 22% to

the GDP of the Indian economy. It employees around 57% of the labour force on a total

of 163 million hectares of land. Agriculture sector is an important factor in achieving a

GDP growth of 8-10%. All this indicates that India can be promoted as a major hub for

trading of commodity derivatives. It is unfortunate that the policies of FMC during the

most of 1950s to 1980s suppressed the very markets it was supposed to encourage and

nurture to grow with times. It was a mistake other emerging economies of the world

would want to avoid. However, it is not in India alone that derivatives were suspected of

creating too much speculation that would be to the detriment of the healthy growth of

the markets and the farmers. Such suspicions might normally arise due to a

misunderstanding of the characteristics and role of derivative product.

It is important to understand why commodity derivatives are required and the role they

can play in risk management. It is common knowledge that prices of commodities,

metals, shares and currencies fluctuate over time. The possibility of adverse price

changes in future creates risk for businesses.

Derivatives are used to reduce or eliminate price risk arising from unforeseen price

changes. A derivative is a financial contract whose price depends on, or is derived from,

the price of another asset.

Two important derivatives are futures and options.

Commodity Futures Contracts: A futures contract is an agreement for buying or selling

a commodity for a predetermined delivery price at a specific future time. Futures are

standardized contracts that are traded on organized futures exchanges that ensure

performance of the contracts and thus remove the default risk. The commodity futures

have existed since the Chicago Board of Trade (CBOT) was established in 1848 to bring

farmers and merchants together. The major function of futures markets is to transfer

price risk from hedgers to speculators. For example, suppose a farmer is expecting his

10



crop of wheat to be ready in two months time, but is worried that the price of wheat may

decline in this period. In order to minimize his risk, he can enter into a futures contract

to sell his crop in two months’ time at a price determined now. This way he is able to

hedge his risk arising from a possible adverse change in the price of his Commodity.

Commodity Options contracts: Like futures, options are also financial instruments used

for hedging and speculation. The commodity option holder has the right, but not the

obligation, to buy (or sell) a specific quantity of a commodity at a specified price on or

before a specified date. Option contracts involve two parties – the seller of the option

writes the option in favour of the buyer (holder) who pays a certain premium to the

seller as a price for the option. There are two types of commodity options: a ‘call’ option

gives the holder a right to buy a commodity at an agreed price, while a ‘put’ option gives

the holder a right to sell a commodity at an agreed price on or before a specified date

(called expiry date).

The option holder will exercise the option only if it is beneficial to him; otherwise he

will let the option lapse. For example, suppose a farmer buys a put option to sell 100

Quintals of wheat at a price of $25 per quintal and pays a ‘premium’ of $0.5 per quintal

(or a total of $50). If the price of wheat declines to say $20 before expiry, the farmer will

exercise his option and sell his wheat at the agreed price of $25 per quintal. However, if

the market price of wheat increases to say $30 per quintal, it would be advantageous for

the farmer to sell it directly in the open market at the spot price, rather than exercise his

option to sell at $25 per quintal.

Derivative and future are basically of 3 types:

swaps

Forwards and Futures

Options

11





Exchange Abbreviation Location Product Types

CME Group CME ChicagoAgricultural, Biofuels,

Precious Metals

Chicago Climate

ExchangeCCX Chicago Emissions

New York Board of Trade NYBOT New York Agricultural, Biofuels

New York Mercantile

Exchange NYMEX New York

Energy, Agricultural,

Industrial Metals, Precious

Metals

Dubai Gold &

Commodities ExchangeDGCX Dubai Precious Metals

Multi Commodity

ExchangeMCX India

Energy, Precious Metals,

Metals, Agricultural

National Commodity and

Derivatives Exchange NCDEX Mumbai All

Purpose:

Commodity market is a market where raw or primary products are exchanged. These

raw commodities are traded on regulated commodities exchanges, in which they are

13

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

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

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



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

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

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



http://en.wikipedia.org/wiki/Dubai_Gold_%26_Commodities_Exchange


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

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


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

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


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





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







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



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



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




bought and sold as standardized contracts. The modern commodity market have their

roots in the trading of agricultural products. While wheat and corn, cattle and pigs, were

widely traded using standard instruments in 19th century in the United States, other

basic foodstuff such as soybeans and wheat were only added quality recently in most

market. For a commodity market to be established there must be very broad consensus

on the variations in the product that make it acceptable for one purpose or another.

The economic impact of the development of commodity market is hard to over-estimate.

Through the 19th century “the exchanges became effective transportation, warehousing

and financing, which paved the way to expanded interstate and international trade.”

AIM

To analyze and understand the perception of investors towards Commodity market.

Objectives of the study

• To understand and analyze the commodity markets.

• To know the perception of investor about commodity market.

• To study the trend of commodity market.

•

To know in depth the online trading system and challenges entailed.

Key Question

• Are you aware of commodity market?

• Why are you not investing in commodities sources?

• Is there any brokerage issue that results in non-trading in commodities?

Hypothesis of the study:

Hypothesis 1

H0: Trading in commodity lead to growth in inflation

H1: Trading in commodity will not lead to growth in inflation

14



Hypothesis 2

Ho: Investment in commodities is beneficial for the retail investor.

H1: Investment in commodities is not beneficial for the retail investor .

Research Methodology

Stage 1: Literature Research

A comprehensive review of relevant literature including computer assistance search will

be undertaken in order to develop an understanding of concept and previous work

related to Commodity market and its opportunities.

Stage 2: Research Design

The type of research followed would be descriptive and analytical.

15



CHAPTER-2

RESEARCH METHODOLOGY

16



RESEARCH METHODOLOGY

4.1 INTRODUCTION

Commodity market is the latest market introduced in India and people are not yet aware

of commodity trading very much. In the international market the investment required for

the commodity market is huge and brokers should follow such steps so that they could

generate decent profits for their clients. But the problem is that these brokers are least

bothered about the profit generation of the clients and they are just concerned about their

brokerage and make maximum profit. Thus these brokers do not advice their clients in a

proper way and are likely to lose their clients and even these clients lose their faith on

brokers as well as commodity market.

4.2 STATEMENT OF RESEARCH PROBLEM.

As the investment required in commodity market is huge, people are hesitant to invest in

commodity market .Inadequacy in guidance provided by brokers’ may not facilitate

proper generation of profits for the clients. This may also contribute to the slackness in

investment in this sector especially when clients are also not well trained about the

market fluctuations. Clients are not advised properly regarding the generation of profit in

the international market and also in Indian market.

4.3 STATEMENT OF RESEARCH OBJECTIVE

The study conducted on this problem with reference to customers has the following

objectives

1. to make the people well aware of commodity market at both the international as

well as Indian market.

2. To address the problem/issues which are acting as an obstracle

2. To ascertain the awareness levels of people with respect to commodities markets.

3. To identify the problems/issues which are acting as an obstacle to trading.

4.4 STATEMENT OF RESEARCH DESIGN AND METHODOLOGY

The study is based on survey technique. The study consists of analysis about customer’s

awareness of and satisfaction regarding the rate of return earned in the commodities

17



market. For the purpose of the study, 100 customers were picked up at random and their

views solicited on different parameters. The methodology adopted includes

• Questionnaire

• Discussions with the concerned respondents to supplement the questionnaire

4.5- SOURCES OF DATA :

PRIMARY DATA:

Primary data is collected through:

• Telephone conversations.

• Questionnaire

SECONDARY DATA

Secondary data is collected from:

• Journals

• Magazines

• Internet

Sample Size: 100 customers of Bangalore city

Sampling Method: Convenient random sampling

Stage4: Measurement Procedure

The data collected through questionnaire will be represented in tabular and graphical

form with the help of appropriate statistical tools.

Stage 5: Sampling

Sampling Plan: Sampling is nothing but a small portion of population to show the

quality of the whole. Sampling can be classified into three sections as mentioned below.Sampling Type: The study type is analytical, quantitative and historical.

Sampling Size : It refers to the total number of people including in the sample plan. In

this project, sample size is 100 customers in Bangalore.

Sampling Unit : Sampling unit refers to the sample target. In this project, the sample

units are the investors who invest in Commodity market.

18



4.5- SCOPE OF STUDY

The research that is being conducted by me will be useful in the following respect-

1-This will help the company, how to make people aware about derivatives &

commodity market by imparting best education.

2-This will help the company to know the customer’s preferences and channelize it

towards derivatives & commodities.

3-This will help the company to frame effective Marketing Strategy.

4.6- LIMITATIONS OF THE STUDY

Personal Bias

People may have personal bias towards particular investment option so they may not

give correct information and due to which conclusion may be derived.

Time Limit:

The time duration of the research is short and that is why the information is not fully

covered.

Area:

The area was limited to Bangalore city only, so we can not know the degree of the

literacy of commodity market and forex market outside the city limit.

Sample Size:

The last limitation is Sample size i.e. 100 only; due to which we may not get the proper

results.

Formulation of hypothisis:

• Trading in commodities lead to growth in inflation.

• Investment in commodities is beneficial for the retail investor.

Methodology:

As already stated above it is a descriptive and analytical research,therefore following

will be include in my methodology.

• Detail study on commodity.

• Analyyzing the trend of commodity market and its effect on economy.

19



• Studying the effect of economic factors and government policies on commodity

market.

• Various factors of commodities that are influencing the economy.

Analysis of data:

Table2. Instruments in which people are trading.

Instruments Nos. Percentage(%)

Equity 46 46

Derivatves 19 19

Commodities 35 35

Interpretation:

From the data I have collected it shows that more people like to trade in equities then

in commodies .

20





News Paper 8 8

Internet 10 5

Advice of Friends 13 3

Advice of CA/Tax

Consultants

9 7

Well-knownStock Broking

Houses

15 2

Business Magazines 7 9

Table4. Are you satisfied with trading in commodity market?

Option Percentage(%)

Very Satisfied 20

Satisfied 34

Neutral 18

Not satisfied 26Very Dissatsfied 2

Total 100

Interpreation:

As per the data collected 34 percent of people are satisfied with trading in

commodities.And 20 percent of people are very satisfied while trading in

commodities.And only 2 percent people are dissatisfied with trading in commodities.

Table5. Belief of people about volatility of commodity market


Strongly Agree 62

Strongly Disagree 38

Total 100

22



Interpreation:

From the data I collected 62 percent people are strongly agree that commodity

market is volatile and 38 percent of people believe that commodity market is not

volatile.

Table6. If yes ,Rank the following product,the most volatile in a market

Commodity Rank

Bullion 1Spices 3

Oil 2

Fiber 6

Metal 4

F&O 5

Interpreation:

When I asked investor rank the above product as per their volatility they rank Bullion as

1 then oil then spices then metal etc. As per perception of the investor Bullion is the

most volatile product in the market.

Table7. Factors affect the volatility of the commodity market

23




GDP growth rate 9

Economy Global Trend 15

Agricultural Production 28

Inflation Rate 10

Seasonal Variation 38Total 100

Interpreation:

There are certain factors which affect the volatility of the commodity market. From the

above factors seasonal variation is the one factor which affect the volatility of the

commodity market most. Agricultural Production is the second factor which also effect

the volatility of the commodity market. There are other factors which effect the volatility

are GDP growth rate, Inflation Rate etc.

Table8. Part of saving people invest in commodity market

Option Percentage(%) Frequency

Less than 25% 49 49

25%to50% 31 31

50%to75% 17 17

24



Above 75% 3 3

Total 100 100

Interpreation:

When I asked people that what part of their income they spent in commodity market

then only 3 percent of sample population invest above 75 percent of their saving in

commodity market.17 percent of sample population invest 50-75 percent of their saving

in commodity market.31 percent of sample population like to invest 25-50 of their

saving in commodity market.49 percent of sample population like to invest less than 25

percent of their saving in commodity market. So from this we can conclude than more

number of people spent very less amount of their saving in commodity market.

Table9. On an average people expect return from commodity market


10%to15% 6

15%to20% 16

20%to30% 26

More than 30% 52

25





Interpreation:

As per data collected 44 percent of people are satisfied with their return and 10 percent

of people are very dissatisfied with their return.18 percent of people are very satisfied

with their return and 16 percent of people are dissatisfied with their return.

27





• People who were scared to invest in commodity market can be or convinced and

made to trade in the commodity market and also use technical and fundamental

analysis when proper training is given.

• People can be converted to invest in the international market when advices are

given regarding the market landings.And also when the clients are given daily

updates,they start to trade regularly.This generates revenue for the organization.

29





A. ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Commodity money and commodity markets in a crude early form are believed to have

originated in Sumer where small baked clay tokens in the shape of sheep or goats were

used in trade. Sealed in clay vessels with a certain number of such tokens, with that

number written on the outside, they represented a promise to deliver that number. This

made them a form of commodity money - more than an "I.O.U." but less than a

guarantee by a nation-state or bank. However, they were also known to contain promises

of time and date of delivery - this made them like a modern futures contract. Regardless

of the details, it was only possible to verify the number of tokens inside by shaking the

vessel or by breaking it, at which point the number or terms written on the outside

became subject to doubt. Eventually the tokens disappeared, but the contracts remained

on flat tablets. This represented the first system of commodity accounting.

However, the Commodity status of living things is always subject to doubt - it was hard

to validate the health or existence of sheep or goats. Excuses for non-delivery were not

unknown, and there are recovered Sumerian letters that complain of sickly goats, sheep

that had already been fleeced, etc.

If a seller's reputation was good, individual "backers" or "bankers" could decide to take

the risk of "clearing" a trade. The observation that trust is always required between

market participants later led to credit money. But until relatively modern times,

communication and credit were primitive.

Classical civilizations built complex global markets trading gold or silver for spices,

cloth, wood and weapons, most of which had standards of quality and timeliness.

Considering the many hazards of climate, piracy, theft and abuse of military fiat by

rulers of kingdoms along the trade routes, it was a major focus of these civilizations to

keep markets open and trading in these scarce commodities. Reputation and clearing

became central concerns, and the states which could handle them most effectively

31







STRUCTURE OF COMMODITY MARKET

34

Ministry of Consumer Affairs

FMC(ForwardMarketCommission)

Commodity Exchange

National Exchanges Regional Exchange

NCDEX

MCX

NMCE NBOT

20ReasonalStock Exchange



Commodity Exchange

As commerce and industry have matured, each craft developed a vocabulary that

uniquely describes its products, technology, and business practices. Often, these words

seem incomprehensible to the layman. The terms that are central to the New York

Mercantile Exchange can at times seem formidable, especially those pertaining to our

industry, futures and options, as well as those of our principal customers, energy and

metals producers, vendors, and consumers.

The New York Mercantile Exchange, Inc., offers trading in futures and options on crude

oil, heating oil, unleaded gasoline, natural gas, electricity, gold, silver, copper,

aluminum, platinum, and the Euro Top 100® index; futures on the FTSE Euro top 300®

index; and options on propane, palladium; and the heating oil/crude oil and gasoline/

crude oil price differential.

In the lingo of the institution, “sweet crude” is not the exclamation of an oil driller who

has just brought in a successful well, wet barrels are different from paper barrels, mogas

is something most people use everyday, hallmark is not a brand of greeting card, a lease

does not involve real estate, fine weight is not the result of a diet program, and contango

is not a dance step.

This short lexicon is not meant to be a comprehensive dictionary; its aim is to foster a

better understanding of our business by the trading community, our customers, and the

public at large.

The Exchange’s public information office makes information available 24 hours a day

through phone systems which put you in touch with vital Exchange information faster

35





NCDEX (NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE)

NCDEX started working on 15th December, 2003. This exchange provides facilities to

their trading and clearing member at different 130 centers for contract.

In commodity market the main participants are speculators, hedgers and arbitragers.

FACILITIES PROVIDED BY NCDEX

NCDEX has developed facility for checking of commodity and also provides a

wear house facility

By collaborating with industrial partners, industrial companies, news agencies,

banks and developers of kiosk network NCDEX is able to provide current rates

and contracts rate.

To prepare guidelines related to special products of securitization NCDEX works

with bank.

To avail farmers from risk of fluctuation in prices NCDEX provides special

services for agricultural.

NCDEX is working with tax officer to make clear different types of sales and

service.

37



taxes.

38





CHART-2

40





details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last

traded price, D.P.R, volume (in 000’s), value (in lac),% change, average trade price,

high, low, open, close & open interest.

New York Mercantile Exchange (NYMEX)

The New York Mercantile Exchange (NYMEX) is the world's largest physical

commodity futures exchange, located in New York City. Its two principal divisions are

the New York Mercantile Exchange and Commodity Exchange, Inc (COMEX) which

were once separate but are now merged. The parent company of the New York

Mercantile Exchange, Inc., NYMEX Holdings, Inc. became listed on the New York

Stock Exchange on November 17, 2006, under the ticker symbol NMX. Less than two

years later, on August 22, 2008, NYMEX Holdings was formally acquired by CME

Group (symbol: CME) and the NMX symbol was de-listed.

The New York Mercantile Exchange handles billions of dollars worth of energy

products, metals, and other commodities being bought and sold on the trading floor and

the overnight electronic trading computer systems. The prices quoted for transactions on

the exchange are the basis for prices that people pay for various commodities throughout

the world.

The floor of the NYMEX is regulated by the Commodity Futures Trading Commission,

an independent agency of the United States government. Each individual company that

trades on the exchange must send its own independent brokers. Therefore, a few

employees on the floor of the exchange represent a big corporation and the exchange

employees only record the transactions and have nothing to do with the actual trade. The

42

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

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

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

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

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

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


http://en.wikipedia.org/wiki/November_17

http://en.wikipedia.org/wiki/2006



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


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

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

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

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

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

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


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

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

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


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

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

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

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



http://en.wikipedia.org/wiki/November_17

http://en.wikipedia.org/wiki/2006





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

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

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

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

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

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


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

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

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



NYMEX is one of the few exchanges in the world to maintain the open outcry system,

where traders employ shouting and complex hand gestures on the physical trading floor.

ONLINE TRADING

43

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

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









TRADING PLATFORM

47









Turmeric Urad

V-797

KapasWheat

Yellow

Peas

Yellow Red

Maize

Base Metals

Electrolytic Copper Cathode

Mild Steel Ingots

Sponge Iron

Precious MetalsGold

Silver

NCDEX Energy

Brent Crude Oil

Furnace Oil

51

http://www.ncdex.com/products/products_agro_turmeric.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_urad.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_kapas.aspx?Type=Gen


http://www.ncdex.com/products/products_agro_wheat.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_yellow%20peas.aspx?Type=Gen


http://www.ncdex.com/products/products_agro_yellow%20red%20maize.aspx?Type=Gen


http://www.ncdex.com/products/products_met_copper.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_steel.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_Sponge_Iron.aspx?Type=Gen

http://www.ncdex.com/products/products_precious_kilogold.aspx?Type=Gen

http://www.ncdex.com/products/products_precious_megasilver.aspx?Type=Gen

http://www.ncdex.com/products/products_ener_brent.aspx?Type=Gen

http://www.ncdex.com/products/products_ener_furnaceoil.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_turmeric.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_urad.aspx?Type=Gen



http://www.ncdex.com/products/products_agro_wheat.aspx?Type=Gen





http://www.ncdex.com/products/products_met_copper.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_steel.aspx?Type=Gen

http://www.ncdex.com/products/products_agro_Sponge_Iron.aspx?Type=Gen

http://www.ncdex.com/products/products_precious_kilogold.aspx?Type=Gen

http://www.ncdex.com/products/products_precious_megasilver.aspx?Type=Gen

http://www.ncdex.com/products/products_ener_brent.aspx?Type=Gen

http://www.ncdex.com/products/products_ener_furnaceoil.aspx?Type=Gen



CHAPTER-4

SUMMARY AND CONCLUSIONS

52



OBSERVATION

People need to be made aware of commodity market.

Clients who are scared to invest in Commodity market can be convinced and

made to trade in the forex market, bullions and crude oil and also use technical

and fundamental analysis when proper training is given.

Clients can be convinced to invest in the international market when advices are

given regarding the market landings. And also when the clients are given daily

updates, they start to trade regularly. This generates revenue for the organization.

5.2 CONCLUSIONS AND RECOMMENDATIONS

According to my observations and understanding I would like to highlight the following

points which may enable them to serve their clients better.

• The organization can direct extra efforts in its promotional activities as the

commodity market is a recent market in India and people are not much aware of it.

• Since most of the people are investing in fixed return Instruments to reduce risk

and secure higher returns, they have to be educated of the benefits of trading

aggressively in the commodities market.

• People generally want to take trading decisions independently or under the

guidance of Friends or Well Known Stock Broking Houses. To specifically

target the customer segments to win their trust and confidence by using trained

executives to enhance their brand image.

53





b) Broker

c) News Channel

d) News Paper

e) Internet

a) f. Advice of friends

b) g. Well known stock Broking Houses

c) h. Business Magazine

4. Are you satisfied with the trading in commodity market?

a) Very satisfied

b) Satisfied

c) Not satisfied

d) Very Dissatisfied

5. Do you believe that commodity market is volatile?

a) Strongly Agree

b) Strongly Disagree

6. If yes, Rank the following products, the most volatile in a market?

COMMODITY RANK

Bullion

Spices

Oil

Fiber

MetalF & O

7. Which of the following factor affects the volatility of the commodity market?

a) GDP growth rate

b) Economy Global Trend

55





THANK YOU

57



BIBLIOGRAPHY

BOOKS:

TECHNICAL ANALYSIS BY MAGGI.

MARKET WIZARDS BY JACK SWAGGER.

LISTS OF WEBSITES:

WWW.EQUIS.COM

WWW.GOOGLE.COM

WWW.KERFORD.CO.UK

WWW.WIKIPEDIA.COM

WWW.INVESTOPEDIA.COM.

RELEVANT INFORMATION FROM OFFICE BROCHUERS/WEBSITES.

http://www.equis.com/

http://www.google.com/

http://www.kerford.co.uk/

http://www.wikipedia.com/

http://www.investopedia.com/

http://www.equis.com/

http://www.google.com/

http://www.kerford.co.uk/

http://www.wikipedia.com/

http://www.investopedia.com/

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