prithvi finmart
TRANSCRIPT
“A s t u d y o n c o mmo d i t y
ma r k e t w i t h s p e c i a l
r e f e r e n c e t o A mr e l i c i t y ”
Prepared by,
Harshit S. Gajera
(Enroll: 127220592010 )
Nitin R. Kashid
(Enroll: 127220592022)
Submitted To:
GTU
Guided By,
Dr. Vishal Patidar
A
Summer Internship Project Report
On
What is commodity market ?
Commodity markets refers to physical or virtual transaction of buying
and selling involving raw or primary commodities.
Soft commodities:
coffee, cocoa, sugar, corn, wheat, soybean
Hard commodities:
Gold, Rubber, Oil
Industry Overview
Why commodities market?
• Agriculture country
• Making money
Industry Overview
Commodities:
Industry Overview
Commodity futures exchanges
There are mainly two major exchange of commodity Market in India.
Industry Overview
Derivatives:
Meaning:
A derivative is a financial instrument, which derives its value from some
other financial price.
Types:
• Financial derivatives
• Commodity derivatives
Industry Overview
Types of derivatives contract:
Industry Overview
DERIVATIVES
CurrencyInterest Rate
Put
FuturesSwaps ForwardsOptions
Call Commodity Securiti-es
Company Information
Company Profile:
Name of the company:
Prithvi broking Pvt. Ltd.
Logo of the company:
Key people :
Mr. Kirti Kothari ( Chairman )
Mr. Kunal Kothari ( M.D. & CEO)
Address:
6 B, Corpora, 6th Floor,
Near Shangri-La Biscuits Co.,
L.B.S. Marg, Bhandup (west),
Mumbai – 400078
Company Information
Phone numbers:
Tel: 022 6140 4444
Fax: 022 6140 4427
Web sites:
Www. Prithvifinmart.com
E-mail address:
Company Information
Main Location:
Company Information
Rajasthan
Gujarat
Madhya Pradesh
Maharashtra
Competitors:
Company Information
Business perpendicular:
We offer our clientele a bouquet of products and service is customized
to benefit our clients need.
Services:
• Commodity broking
• Currency broking
• Equity broking
• Private client group
• Premier branches
Company Information
Conti…
• Authorized persons
• E-Broking
• Nearly zero down time
• Within 24 hours account opening.
• Efficient dealing desk
1). 24 hour coverage 2). Reporting
• 24 7 online back office
Company Information
Company Information
Strength:
• Experience
• Client Satisfaction
• Technology
• Strong operation & research desk
• Wide network
SWOT Analysis
Weakness:
• Less informative website
• Does not have slab rate brokerage which is provided by competitors
• Unawareness among traders as well as investors
• High employee turnover Lack of awareness among customers
• Problems due to network crash
SWOT Analysis
Opportunity:
• Collaboration with international financial institution
• To capture the market lost to its competitors
• Marketing at rural and semi-urban areas.
• Increasing usage of online trading
• To focus on developing a superior and powerful portal
• To spread awareness of its brand name
SWOT Analysis
Threats:
• Changing government policy
• Severe competitions
• Increasing number of competitors
• Prolonged depression and high volatility in the market
• Instability of politics
• Lack of sufficient branch-offices for speedy delivery of services
SWOT Analysis
Literature review
1. Topic:
PRICE DISCOVERY, RETURN AND MARKET CONDITIONS:
EVIDENCE FROM COMMODITY FUTURES MARKETS
Year: January 2002
Author: K.G. Sahadevan
Associate Professor,
(Indian Institute of Management, PrabandhNagar, Off Sitapur)
Link: http://ganga.iiml.ac.in/~devan/comex-ijaf.pdf
Literature review
2. Topic:
PROFILE AND GROWTH OF AGRICULTURAL COMMODITY
FUTURES IN INDIA
Author: Sendhil Ra, Amit Karb, Mathur V Cband Girish K Jha
Link: http://www.indiastat.com/article/50/sendhil/full%20text.pdf
3. Topic:
COMMODITIES DERIVATIVES MARKET IN INDIA: THE ROAD TRAVELLED
AND CHALLENGES AHEAD
Author: Meenakshi Malhotra
(Amity International Business School, Noida, India)
Literature review
Link: http://www.onlineresearchjournals.com/ajbe/art/65.pdf
4. Topic:
TRADING IN INDIA’S COMMODITY FUTURE MARKETS
Author: Sunanda Sen, Mahua Paul
Year: Feb 2010
Institute for Studies in Industrial Development
Link: http://isidev.nic.in/pdf/WP1003.PDF
Literature review
5. Topic:
AN EVIDENCE OF SPECULATION IN INDIAN COMMODITY
MARKETS
Author: Vijay Kumar Varadi
Suggested reference: Vijay Kumar Varadi
Link:
https://www.econstor.eu/dspace/bitstream/10419/57430/1/Paper%20on%20Sp
eculative%20evidience.pdf
Literature review
Research Methodology
Statement of the problem:
“A study on commodity market with special reference to Amreli city”
Rationale of the study:
• This will help the company, how to make a good portfolio in commodity markets.
• This will help the knowing about which commodity is giving maximum return.
• This will help the company to frame investor’s awareness about the commodity
market.
Research Methodology
Conti…
• To know how the people take decision to invest in commodity market.
• It will help the company to reduce the obstacles, which come in the way for
the development of commodity market.
Objective of the study
• To analyze the view of commodity traders.
• To make understand the process of future commodity trading in India.
• To know the investment pattern of commodity traders and people.
Research Methodology
Sampling type
• In this project convenient sampling method is used for the selection of
customer.
Sampling unit
• To define sampling unit, one must answer the question that who is to be
surveyed. In this project sampling units are commodity traders, Investors
etc.
Research Methodology
Sample size
We have to select the sample size of the survey was 100 people.
METHODS OF DATA COLLECTION
Research Methodology
Methods: Secondary methods
Questionnaire
Magazines
Newspaper
Web sites
Books
Data Analysis
Demographic Survey:
Data Analysis
88
12
Gender
Male
Female
28
42
30
0
10
20
30
40
50
20-30 30-40 Above 40
Age
Age
Conti…
Data Analysis
3538
27
05
10152025303540
Qualification
Qualification
43
2518
14
0
10
20
30
40
50
Occupation
Occupation
Where do you invest your saving?
Data Analysis
Securities Give rank of preference
Bank FD 57
Mutual fund 69
Post office 37
IPO 43
Insurance 79
Real assets 49
Govt. bonds 23
Gold / silver 54
Stock markets 74
Others 00
Data Analysis
57
6974
43
79
49
23
54
37
00
10
20
30
40
50
60
70
80
90
Securities
Securities
If you invest in stock market, where do you invest your savings?
Data Analysis
MarketsEquity Commodity Derivatives
77 37 42
77
3742
0
20
40
60
80
100
Equity Commodity Derivatives
Market
Market
Which exchange you prefer to deal with?
Data Analysis
Name of exchange No of people
MCX 16
NCDEX 21
MCX43%
NCDEX57%
Exchange
How you reach at investment decision?
Data Analysis
Factors No. of peoples
Self analysis 31
Tips from exports 27
Tips from friends / relatives 18
Business channels 14
Newspapers 10
Others 00
Data Analysis
31
27
18
14
10
00
5
10
15
20
25
30
35
Factors
Factors
Which factor plays a crucial role when you make a decision to
invest in stock Market?
Data Analysis
Factors Nos.
Risk reduction 28
Exploratory Motive 20
Influence Benefit 25
Investment 19
Arbitrage Benefit 08
Data Analysis
28
20
25
19
8
0
5
10
15
20
25
30
Risk reduction
Exploratory Motive
Influence Benefit
Investment Arbitrage Benefits
Factors
Factors
Duration of attachment with commodity market?
Data Analysis
Duration
Less than 1
year1 to 5 year 5 to 10 year
Above 10
year
06 13 15 03
6
1315
3
0
5
10
15
20
Less then 1 year
01 - 05 year 05 - 10 year More then 10 year
Duration
Duration
Which of the following product prefer by you for your investment?
Data Analysis
Products Nos.
Metal 27
Crops 29
Spices 35
Bullion 45
Oil 52
Energy 37
Cereals & Pulse 26
Others 00
Data Analysis
27 2935
4552
37
26
00
10
20
30
40
50
60
Products
Products
Which type of trading you prefer to deal with?
Data Analysis
Type of trading Nos.
Square up mode 16
Arbitrage 09
Intraday 13
Hedging 15
Delivery Based 07
Data Analysis
0
2
4
6
8
10
12
14
16
18
Square up mode
Arbitrage Intraday Hedging Delivery Based
Trading
Trading
How do you view your self?
Data Analysis
Investor type No. of people
Trader 20
Investor 57
Short term investors 23
20
57
23
0204060
Trader Investor Short term investor
Investor type
Investor type
In which of the company you would like to deal more and more
time?
Data Analysis
Name of the company No. of people
Prithvi finmart 67
Marwadi 18
Sherkhan 3
Angel 7
Max stock broking 5
Others 0
Data Analysis
67
18
37 5
0
10
20
30
40
50
60
70
80
Prithvi finmart
Marwadi Shrekhan Angel Max Stock broking
Company
Company
Findings
• Awareness
• Operators
• Qualities
• Process
• Centers
• Trepidation
Findings
Suggestion
• Opportunity
• Persuade
• Allocation
• Planning
• Range
• Inspiration
Suggestion
Limitation
• Area
• Dimension
• Results
• Time
Limitation
Conclusion
After the complete of this project we are concluded that Commodity
derivatives have a crucial role to play in the price risk management process.
Especially in any agriculture dominated economy. Derivatives like
forwards, futures, options, swaps etc are extensively used in many developed
as well as developing countries in the world. However, they have been utilized
in a very limited scale in India. The production, supply and distribution of many
agricultural. Commodities are controlled by the government and only forwards
and futures trading are permitted in certain commodity items.
Conclusion
Thank You