A

REPORT
ON
CONSUMER AWERNESS
ABOUT COMMODITY MARKET

UNDER THE GUIDENCE OF: SUBMITED BY:

DR. HIMANSHU BAROT NAME: DILIP THAPA

ASSOCIATE PROFESSOR ROLL NO: 9

INDUSTRY GUIDANCE: SECTION: 3rd

KAILASH UPADHYAY ENROLL. No.: 040201030

TM OF SHARE KHAN Ltd. BATCH: 2014-16

COLLEGE: UNITED WORLD SCHOOL OF BUSINESS.

UVARSAD, GANDHINAGAR.
 I. List of Contents:
Univariate Analysis Table No. Page
No.
Gender of respondent Table: 1.1 34
AGE. Descriptive Statistics Table: 1.2 35
Which of the following will best describe your occupation? Table: 1.3 36

Your Income Descriptive Statistics Table: 1.4 37

Which among these investment criteria you usually prefer? Table: 1.5 38
Are you aware of commodity market? Table: 1.6 39
If yes have you invested in commodity market? Table: 1.7 40
How do you come to know about commodity future trading? Table: 1.8 41
Which commodity you prefer for trading? Table: 1.9 42
Which factor do you normally consider while trading in commodity market? Table:1.10 43
Commodity future market provides benefits? Table:1.11 44
What made you not to invest in commodity future trading? Table:1.12 45
Are you planning for investing &trading in commodity future market in Table:1.13
future?
Bivariate Analysis
Are you aware of commodity market? * If yes have you invested in Table:1.14 48
commodity market?
Are you aware of commodity market? * How do you come to know about Table:1.15 49
commodity future trading?
If yes have you invested in commodity market? * Which factor do you Table:1.16 50
normally consider while trading in commodity market?
Are you planning for investing &trading in commodity future market in Table:1.17 51
future? * Commodity future market provides benefits?
Hypothesis Testing
Chi-Square Tests Table:1.18 52
Are you aware of commodity market? * If yes have you invested in Table:1.19 53
commodity market?
 II. List of Figures:

Univariate Analysis Fig. No. Page

No.
Gender of respondent Fig: 1.1 35
Which of the following will best describe your occupation? Fig: 1.2 36
Which among these investment criteria you usually prefer? Fig: 1.3 38
Are you aware of commodity market? Fig: 1.4 39
If yes have you invested in commodity market? Fig: 1.5 40
How do you come to know about commodity future trading? Fig: 1.6 41
Which commodity you prefer for trading? Fig: 1.7 42
Which factor do you normally consider while trading in commodity market? Fig: 1.8 43
Commodity future market provides benefits? Fig: 1.9 44
What made you not to invest in commodity future trading? Fig:1.10 45
Are you planning for investing &trading in commodity future market in future? Fig:1.11 46
Bivariate Analysis
Are you aware of commodity market? * If yes have you invested in commodity Fig:1.12 48
market?
Are you aware of commodity market? * How do you come to know about Fig:1.13 49
commodity future trading?
If yes have you invested in commodity market? * Which factor do you normally Fig:1.14 50
consider while trading in commodity market?
Are you planning for investing &trading in commodity future market in future? * Fig:1.15 51
Commodity future market provides benefits?
Hypothesis Testing
Are you aware of commodity market? * If yes have you invested in commodity Fig:1.16 53
market?
 ACKNOWLEDGEMENT

The satisfaction of the successful completion of any task wouldn’t be complete without the
expression of gratitude to the people who made it possible.

I express my gratitude to KAILASH UPADHYAY (TM) SHAREKHAN LTD, for his support
and guidance during the survey.

I am very thankful to Dr. HIMANSHU BAROT, Faculty, UWSB- United World School of
Business for the guidance and interest evinced throughout the preparation of this project.

I also extend my heartfelt gratitude and thanks to Dr. Bhuvneshwar Gupta, Academics Director,
UWSB- United World School of Business. I take this opportunity, also to express my love and
sincere thanks to my family members and friends for their support and advice during various
stage of work.

I also extend my gratitude to the respondents of my survey for their kind co-operation.

But last not the least I thank God almighty for giving me the support for the completion of the
task.
 DECLARATION

I DILIP THAPA Student of UWSB- United world School of Business Batch 2014-16 declare
that every part of the project report on “Consumer Awareness About Commodity Market
(A Research report of Sharekhan Limited)” that I have submitted is original . The information
has been collected from genuine & authentic sources.

The project work is done under the supervision of Dr. Himanshu Barot. The work has been
submitted in the partial fulfillment of the required degree PGDM.

Date of Submission of Project: _____________

Place of Submission of Project: _____________

DILIP THAPA

Faculty’s Comments:
 EXECUTIVE SUMMARY

People invest their money for generating good returns. But in this investment some kind of risk
is involved. All investors have different attitudes towards risk. When it comes to investing, it is
important to consider your risk profile or tolerance carefully, including how comfortable you are
with the possibility of losing money, or that returns on your investments. The risk profile of
investors depends upon their demographic structures or characteristics.

The project deals with the analyzing the investment pattern on the profile of Commodity market
at Sharekhan Limited and what are the risk factors that influence the type of investment made by
individuals . As we all know that every person who wants to gain better returns in future they
must have to invest their money in stock market or anywhere else. This study describes the
investment pattern use by different persons while doing investment in stock market keeping
different risk in mind.

The main reason to choose this research is to find out the Consumer awareness about commodity
market and this research helps the company to target the investors according to their risk ability.
The research process chosen by me is qualitative and quantitative research. Questionnaires in
part help me a lot in finding the actual position of the market under the survey method.

.A sample size of about 100 respondents which includes individual investors as well as corporate
investors was taken for purpose from Ahmedabad, Gujarat. After the survey was completed, the
data was first stored and then analyzed on the chosen parameters. This analyzed data was later on
converted into graphs. Such as pie chart, bar graphs, etc this was to make result easily
comprehensible by any one going through the report. Later on, all this information was compiled
in the form of a presentable and highly comprehensible report.

After analyzing the data, the problem which has been identified that most of the investors are
ready to bear risk in expectation of higher returns. There is a strong relationship in investment
pattern and risk bearing capacity of investors while doing investment. For analyzing the data we
used chi- square and phi-Cramer V test in SPSS V 19.0 and use MS Excel 2007 for making
graphs.
 I. LIST OF CONTENT
II. LIST OF FIGURES
III. DECLARATION
IV. ACKNOWLEDGEMENT
V. EXECUTIVE SUMMERY

INDEX

Chapter : -1 Introduction
Chapter: - 2 Review and literature
Chapter:- 3 Research Methodology
Chapter: -4 Analysis and Interpretation
Chapter: - 5 Finding
Chapter: - 6 Conclusion
Chapter: - 7 Bibliography
Chapter: - 8 ANNEXURE
Chapter: - 9
Chapter: - 1.
Company Introduction
 INDUSTRY OVERVIEW

 INTRODUCTION

Stock exchanges to some extent play an important role as indicators, reflecting to performance of
the country’s economic state of health. Stock market is a place where securities are bought and
sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are
determined by the demand and supply of stocks at a given time. Stock brokers are the ones who
buy and sell securities on behalf of individuals and institutions for some commission.

The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the
operations of stock exchanges, banks and other financial institutions. The past performances in
the capital markets especially the securities scam by ‘Harshad Mehta’ has led to tightening of the
operations by SEBI. In addition the international trading and investment exposure has made it
imperative to better operational efficiency. With the view to improve, discipline and bring
greater transparency in this sector, constant efforts are being made and to a certain extent
improvements have been made.
  HISTORY

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.
The earliest records of security dealings in India are meager and obscure. By 1830's business on
corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the
trading list was broader in 1839, there were only half a dozen brokers recognized by banks and
merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial
enterprise and brokerage business attracted many men into the field and by 1860 the number of
brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about
200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began
(for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a
place in a street (now appropriately called as Dalai Street) where they would conveniently
assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock
Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock
Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of
time number of exchanges were increased and at currently it reached to the figure of 24 stock
exchanges.
  DEVELOPMENT

An important early event in the development of the stock market in India was the formation of
the Native Share and Stock Brokers’ Association at Bombay in 1875, the precursor of the
present-day Bombay Stock Exchange. This was followed by the formation of associations
/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large
number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion
during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of the stock market,
the central government introduced a legislation called the Securities Contracts (Regulation) Act,
1956. Under this legislation, it is mandatory on the part of a stock exchange to seek government
recognition. As of January 2002 there were 23 stock exchanges recognized by the central
Government. They are located at Ahmedabad, Bangalore, Baroda, Bhubaneswar, Calcutta,
Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad,
Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE),
Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC
Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and
Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock
Exchange, accounting for the bulk of the business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged position, they are subject
to governmental supervision and control. The rules of a recognized stock exchanges relating to
the managerial powers of the governing body, admission, suspension, expulsion, and re-
admission of its members, appointment of authorized representatives and clerks, so on and so
forth have to be approved by the government. These rules can be amended, varied or rescinded
only with the prior approval of the government.
  COMPANY PROFILE

It is a Stock Broker:
Sharekhan is one of the leading retail broking houses of SSKI GROUP, Which was running
successfully since 1922 in the country? It is the retail broking arm of the Mumbai based SSKI
GROUP, which has over eight decades of experience in the stock broking business.
SHAREKHAN offers its customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading, investment advisory,
mutual fund advisory etc.

The firm’s online trading and investment site www.sharekhan.com was launched on Feb 8 2000.
The site gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the site
has a registered base of over two lacks customers. The number of trading members currently
stands over 3 lacks. While online trading currently accounts for just over 5 percent of the daily
trading in stocks in India, share khan alone accounts for 32 percent of the volumes traded online.
About SSKI (Shri Shantilal Kantilal, Ishwarlal pvt. Ltd) group:

SSKI groups also comprise institutional broking and corporate finance. While the institutional
broking division caters to the largest domestic and foreign institutional investors, telecom and
media. SSKI holds a sizeable portion of the market in each of these segments.

As the forerunner of investment research in the Indian market, we provide the best research
coverage amongst broking houses in India. Our research team is rated as one of the best in

The country. Voted for times as the Top domestic brokerage house by Asia-money survey SSKI
is consistently ranked amongst the top domestic brokerage houses in India.

Broking… personalized if you prefer the assurance and reliability of trading through a broker,
you can use our network of 250 branches and 1200 business partner outlets in over 123 cities to
trade in equities as well as derivatives. We will help you with the investment process, give you
advice based on extensive research and provide you with relevant and updated information to
help you make informed investment decisions.
Our trading services are designed to offer an easy, hassle free trading experience, whether you
trade daily or occasionally. You will be entitled to a host of value added services, intended to
assist you in your investment process depending of your investing style and frequency.

CURRENT POSITION

VISION

To empower the investor with quality advice and superior service to help him take better
investment decisions. We believe that our growth depends on client satisfaction.

MISSION

To provide the best customer service and product innovation tuned to diverse needs of:

 Continuous up-gradation with changing technology, while maintaining human values.

 Respond to progressive globalization and achieving international standard.
 Efficiency and effectiveness built on ethical practices.
CORE VALUE

 Customer satisfaction through

 Providing quality service effectively and efficiently
 “Smile, it enhances your face value service quality stressed on periodic customer
service Audits.
 Maximization of stakeholder value
 Success through Teamwork, integrity and People
SHAREKHAN ONLINE TRADING PRODUCTS:

(a) Classis Account

Investing Online is so much easier:

This account enables you to buy and sell shares through our website. You get features like

A) Streaming quotes (using the applet based system)

b) Multiple watch lists

c) Integrated Banking, Demat and digital contracts

d) Instant credit and transfer

e) Real-time portfolio tracking with price alerts and, of course, the assurance of secure
transactions.
  Features of Classic Account:

That enables you to invest effortlessly

- 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

Click on the images for larger Screenshots

- 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

- Your very own Portfolio Tracker!

(b) Trade Tiger

- Sharekhan Demat Account

- Our Demat account services are quick, convenient and secure coupled with the Classic
Account or Speed trade. We provide standalone Demat services as well.
 - Trade using your phone!

- Dial-n-Trade

- Free with our Classic Account, Dial-n-trade is an exclusive service for trading shares
from your landline telephone or cell-phone.

FEATURES OF TRADE TIGER:-

A single platform for multiple exchange BSE & NSE (Cash & F&O), MCX, NCDEX, Mutual
Funds, IPOs

Multiple Market Watch available on Single Screen

Multiple Charts with Tick by Tick Intraday and End of Day Charting powered with various
Studies

Graph Studies include Average, Band- Bollinger, Know Sure Thing, MACD, RSI, etc.

Apply studies such as Vertical, Horizontal, Trend, Retracement & Free lines

User can save his own defined screen as well as graph template that is, saving the layout for
future use

User-defined alert settings on an input Stock Price trigger

Tools available to gauge market such as Tick Query, Ticker, and Market Summary

Online fund transfer activated with 12 Banks

(c) SPEED TRADE:

- A/C Opening charges: Rs. Nil

- DEMAT A/C free for first year and Rs.400 from 2nd year onwards. (Annual
Maintenance charges).Software downloading.(CASH and DERIVATIVE)
 - Live NSE terminal, Live BSE terminal, Access charge is adjustable as per new Speed
Trade, Pricing Policy.

BROKERAGE:

- CASH BROKERAGE: - DELIVERY: 0.20%, INTRADAY: 0.02% (Negotiable

According To Margin Money)

- EXPOSURE: - 10 TIMES (ON MARGIN MONEY)

- F&O BROKERAGE: - 0.02%

OTHER FEATURES:-

No Demat Transaction Charges in case of buying and selling through Sharekhan.

For the fund transfer and withdrawal, we have tie-up with ten BANK'S-

- HDFC Bank, CITI Bank, IDBI Bank, UTI Bank, UBI Bank, Indus Bank.

- Oriental Bank of Commerce, ICICI Bank, Yes bank, Bank of India

If you are having bank a/c in one of them, you can transfer the funds and withdraw the funds
online from your trading a/c at any time.

Along with above following benefits are available:

- BTST (Buy today Sell Tomorrow)

- Online IPO's available.

- Online Mutual Funds available.

- Dial -n- Trade facility

Document Requirement for Opening an account.

- 2 passport size photograph

- Identity proof (PAN card is compulsory)

- Residence proof

- Cheque ( Min Rs.5,000 margin balance)

Proofs of Identity

Customer can submit a photo copy of any one of the following

- Voter ID/Passport /PAN Card/Driving License

- Photo I card issued by Employer registered under MAPIN

Address Proof
Customer can submit a photo copy of any one of the following

- Voter ID Card/ Driving License/ Passport

- Ration Card/ Telephone Bill/Electricity Bill

- Bank Passbook/Latest Bank Statement

Sharekhan Research:
Receive high performance trading recommendations from Sharekhan yes we boast of strike rates
as high as 70-90% in booking recommendations in the money. Our first rule is not to lose money
and the second to make some. If you didn’t believe making money was a scientific process and
there was a method in the madness we have broken the myth and with consistency.

Investment ideas:
For investment the application of the bottom-up approach of investing with a clear focus on
stock picking has resulted in investment ideas that have withstood the storm to deliver returns to
patient investors. Effective money management with appropriate risk rewards, the relentless use
of stop losses. And our clear – cut focus on the importance of timing the market accurately has
contributed to this success

Trading calls:
Trading will never be the same again once you are accustomed to the disciplined trading tools
that we provide, that help you to achieve your trading objective of high profits and limited risk.
Some of the most unique and customized products are developed to meet your specific needs.
We believe that making money involves had work and you need to be brace that’s right a brave
heart.

Research team:
All this is made possible by a team of dedicated analysts who have years of working experience
in the industries that they track, and a proven track in using their knowledge of the investment
science to deliver results

Depository services:

Sharekhan offers you the convenience of broker – DP. It will help you meet your pay-in
obligations on time thereby reducing the possibility of auctions. They understand your need for
flexibility therefore they accept late instructions without any extra charge.

The instruction immediately on receiving it. You can view your update account statement on
internet.
Sharekhan depository service offers DEMAT services to individual and corporate investors. We
have a team of professionals and the latest technological expertise dedicated exclusively to out
DMAT department. You can avail of Demat ‘Remint, Repurchase, Pledge, Transmission
facilities at our branch and business partner’s outlets. They have designed product like classic,
speed trade and speed trade plus.
System Requirements
You'll need access to a computer which has at least the following configuration:

A. Pentium, Minimum 1 GB RAM

B. Windows 7/XP/VISTA
C. Internet Connection
D. Internet Explorer
E. Java enabled in IE
Area of investment through Sharekhan
1. Derivative
2. Commodity
3. Equity
4. IPO’s ( Initially Public Offer)
1. Derivative Market:
Financial markets are, by nature, extremely volatile and hence the risk factor is an important
concern for financial agents. To reduce this risk, the concept of derivatives comes into the
picture. Derivatives are products whose values are derived from one or more basic variables
called bases. These bases can be underlying assets (for example forex, equity, etc.), bases or
reference rates. For example, wheat farmers may wish to sell their harvest at a future date to
eliminate the risk of a change in prices by that date. The transaction in this case would be the
derivative, while the spot price of wheat would be the underlying asset.

The need for a derivative market:

The derivative market performs a number of economic functions.

1. They help in transferring risk from risk adverse people to risk oriented people.
2. They help in the discovery of future as well as current prices.
3. They catalyze entrepreneurial activity
4. They increase savings and investment in the long run.
Factors driving the growth of financial derivatives:
1. Increased volatility in asset prices in financial markets.
2. Increased integration of national financial markets with the international markets
3. Marked improvement in communication facilities and sharp decline in their costs
4. Development of more sophisticated risk management tools, providing economic agents a
wider choice of risk management strategies.
2. Commodity:
Although commodity derivatives command a humble share of 6% in the derivatives segment
across the world, yet these record high volumes in the markets the world over compared to
equity derivatives. In an era where risks to investments are on the rise. India needs to switch to
commodity derivatives and also to whether derivatives (when these are launched), if it needs to
top the list of developed nations.

3. Equities:

Trading accounts
With a Sharekhan online trading account you can buy and sell shares in an instant. Any time you
want, from anywhere you like.

A Sharekhan online trading account comes with a depository participant account where you can
keep all your shares, in safe custody with National Securities Depository.

You can also like a Sharekhan online trading account to an Internet banking account of your
choice, so that you can move cash in and out of this account easily, without the bother of writing
Cheque all the time.

Sharekhan offers two types of trading accounts to suit your trading habits. Sharekhan account
and Sharekhan.

Trading services
Trading is super-fast, extremely safe and high secure at Sharekhan. Apart from providing the
most advanced trading platform in the country, Sharekhan also offers facilities like instant cash
transfer, after-market order, limit against shares and four times exposure on margin.

Trading products:
For timely and accurate “Buy” and “Self” recommendations try our Super-Duper trading
products.
4. IPO’s:

An IPO, or Initial Public Offering, is the sale of shares by a company to the public for the first
time colloquially, it is said that a company is ‘going public’.

How is then that company like ONGC and GAIL, which are already listed, are going for an
“IPO” again?

The government is the majority stockholder in these companies and it is offering a percentage of
its stock now to the public. So strictly speaking, public sector companies that are already listed
are not having their ‘IPO’ but they are going for a ‘public offering’ of their shares it’s technical
distinction and one that should not bother individual investors.

To apply to an IPO you have to fill an IPO application form. These forms are available in stalls
outside the stock exchanges and with vendors in various other areas. You can also get an
application form through a share broker or investment consultant, if you have one. Else forms are
available at various banks.

The other option is to check the SEBI website (http//www.sebi.gov.in) for the prospectus of a
particular IPO. The prospectus lists the lead managers for the IPO and you can get a copy of the
application form from their centers.

Once you get the form, you have to fill it, remit the amount after calculating the number of
shares applied for the bank that is designated in the form as collecting center for that IPO.

If you have a Demat account, then you can apply for the shares directly through your Demat
account or thee is an option of physical delivery of share certificates.

Some IPO offer only Demat (dematerialized) form of shares, while others offer both Demat as
well as regular (physical) shares.

SEBI advices investors to get the allotment in Demat forms as the shares in IPO are tradable only
in Demat segment in the stock exchanges. Dealing of physical shares (allocated in IPO) is not
accepted.
AWARDS AND ACHIEVEMENT:

8 July 2005, Mumbai: Sharekhan won the award by the vote of consumers around the country, as
part of India’s largest consumer study cover 7000 respondents – 21 products and services across
21 major cities. The study, initiated by Awaaz – India’s first dedicated consumer channel and
member of the worldwide CNBC Network, and AC Nielsen – ORG, Margi, was aimed at
understanding the brand preferences of the consumer and to decipher what are the most
important loyalty criteria for the consumer in each vertical.

In order to select the award recipient, spontaneous responses, rather than promoted responses
were garnered, with an intention to glean unbiased preferences. Opinions were garnered from
owners of each of the categories, to get experimental responses, which are likely to be more
realistic and grounded in nature. Further, preference also indicates future intentions of repeat
purchases.

The reasons behind the preferences for brands were unveiled by examining the following.

 Tangible features of product / service.

 Softer, intangible features like imagery, equity driving preference.
 Tactical measures such as promotional / pricing schemes.
Sharekhan is honored to be voted as the most preferred stock broking brand in India our focus
has always been to demystify the stock market and empower the investors to take informed
decisions”, said Jaideep Arora, Director, Sharekhan “The Award increases Share khan’s
responsibility to persistently delight our customers with user-friendly trading experience and we
shall continue our focus to evolve business strategies that keep us aligned with our customers
need
Sharekhan signs on Blue Lotus as communication partner:
Mumbai July, 2005 Sharekhan, the retail broking arm of SSKI group, one of the largest stock
broking houses in the country, signed on Blue Lotus Communication Consultancy as its
communications partner recently. Sharekhan aims to gain a substantial market share through
various new initiatives like First step, Platinum Guild & Power Club and communications has
been identified as a major marketing initiative by the company.

First step, an initiative aimed at demystifying the stock markets to the layperson, provides
guidance, knowledge and jargon-free research to help the first time investor take their careful
first steps in the stock market. With over a million new investors having entered the stock market
over the last year, the product was launched to address the market need to provide structured
supervision to the stock market novice.

On a fast growth spree, Blue Lotus Communications Consultancy has acquired its 6th client over
the last month amounting to an addition of Rs.5 cores to the agency’s capitalized turnover.
Speaking on the growth of the company, N. Chandramouli, CEO, Blue Lotus Communications
Consultancy said, “The acquisition of the Sharekhan account is extremely prestigious for Blue
Lotus. The communication of Sharekhan will be unique since it uses a combination of
technology and finance to achieve the objectives of the client. Our strengths have in these sectors
have proven to be a dovetail fit for Sharekhan.

Founded in October 2002, Blue Lotus has an impressive client portfolio with names like Trend
Micro, TWS Holding, Bristlecone, Mahindra Special Services Group, Habitat International
Spryance and Johnson & Johnson Acuvue. Having gained these accounts

Through aggressive pitches the Rupees Fifteen Crores agency employs 50 people across its 5
offices.

“We have always believed that public relations are an essential marketing tool that helps build
brand credibility, trust and recall. PR is an essential ingredient in any communications portfolio
and the progressive companies like Sharekhan have recognized this need. We have an aggressive
education and awareness campaign linked up for this online stock trading major”, added
Chandramouli.
 SWOT ANALYSIS

Strengths:
The do-it-yourself framework of online share trading offers retail investors the three benefits of
transparency, access and efficiency. Paperwork diminishes significantly, and no more painful
trips to your broker to check if everything’s in order online trading has made it possible to
universalize access to retail investors. This was earlier very difficult, as the cost of servicing
often-outweighed transaction volumes. Online brokerage ranges between 0.01-0.05 percent of
the value of transactions for non-delivery-based traders, and 0.20 percent for delivery- based
trades. Once major investments in online infrastructure are over and done with and with the
economies of scale coming into play – it is expected that brokerage rates would head further
head further downwards.

Access to online trading and latest financial happenings, apart from quotes and unbiased
investment analyses, all consolidate into a value added product mix in tandem with evolving
markets that are freer and fairer. The net result: n inquisitive, informed and demanding investor.
Today’s investor is more involved in managing his or her assets and analyzing a vast array or
investment options. Technology and today’s enabled investor have, turn, driven competition,
resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate
and real time. More and more investors now want to know how their trades are executed, and
whether they have received the best possible price. Critical components of execution quality
include the prices at which orders were executed as well as the speed of execution. The quality of
execution, in turn, hinges on efficient order routing. We owe this to our investor fraternity.

Weakness:
Everything in the world has a flip has side to it- Transaction velocity is crucial and more often
than not, connections are lousy. There’s also a degree of investor skepticism about online
payment and settlement mechanisms in spite of all the encryption and firewalling brought into
playtime and technology will soon assuage these concerns, which hark back to the ‘physical’
days.

“The three main technology obstacles which have prevented Internet broking from taking off are:
 - Lack of Internet penetration

- Bandwidth infrastructure

- Poor quality of ISP infrastructure”

Opportunities:
You have some money to dabble with trading shares on BSE/NSE has always been your dream.
When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is
your main opportunity.

Realizing there is untapped market of investors who want to be able to execute their own trades
when it suits them, brokers have taken their trading rooms to the Internet. Known as online
brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service discount brokers and full service broker. Discount
online brokers allow you to trade via Internet at reduced rates. Some provide quality research,
other don’t. Full service online brokerage is linked to existing brokerages. These

Brokers allow their clients to place online orders with the option of talking / chatting to brokers
if advice is needed. Brokerage rates here are higher. 5 paisa.com, icicidirect.com, indiabulls.com,
Sharekhan.com, geojitsecurities.com, hdfcsec.com, tatatdw.com and kotakstreet.com are some of
the online broking sites in India.

Threats:
On to some threat perception – Domestic funds, foreign institutional investors and operators
comprise the three main market constituents. And all three include term investors as well as
opportunities in their pecking order. Some, for instance, hitch their fate with what the FIIs are up
to. All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And
some, not all, offer free investment advice over the net to lure rookie investors with misleading
information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy
the net unlike in the US; stockbrokers out here willingly (or under the force of circumstance)
assume the role of advisors, sans the neutral, non-vested stance. So, how does all this impinge on
the ordinary guy’s ordinary dreams?
Topic Introduction: -
COMODITY MARKET INTRODUCTION
 INTRODUCTIONS TO COMMODITY MARKET:

 What is “Commodity”?
 Any product that can be used for commerce or an article of commerce which is traded on
an authorized commodity exchange is known as commodity. The article should be mov-
able of value, something which is bought or sold and which is produced or used as the
subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward
Contracts (Regulation) Act (FCRA), 1952 defines “goods” as “every kind of movable
property other than actionable claims, money and securities”.
 In current situation, all goods and products of agricultural (including plantation), mineral
and fossil origin are allowed for commodity trading recognized under the FCRA. The na-
tional commodity exchanges, recognized by the Central Government, permits commodi-
ties which include precious (gold and silver) and non-ferrous metals, cereals and pulses,
ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar
and gur, potatoes and onions, coffee and tea, rubber and spices. Etc.

 What is a commodity exchange?

 A commodity exchange is an association or a company or any other body corporate orga-
nizing futures trading in commodities for which license has been granted by regulating
authority.

 What is Commodity Futures?

 A Commodity futures is an agreement between two parties to buy or sell a specified and
standardized quantity of a commodity at a certain time in future at a price agreed upon at
the time of entering into the contract on the commodity futures exchange.
 The need for a futures market arises mainly due to the hedging function that it can per-
form. Commodity markets, like any other financial instrument, involve risk associated
with frequent price volatility. The loss due to price volatility can be attributed to the fol-
lowing reasons:
 Consumer Preferences: - In the short-term, their influence on price volatility is small
since it is a slow process permitting manufacturers, dealers and wholesalers to adjust their
inventory in advance.
 Changes in supply: - They are abrupt and unpredictable bringing about wild fluctuations
in prices. This can especially noticed in agricultural commodities where the weather
plays a major role in affecting the fortunes of people involved in this industry. The fu-
tures market has evolved to neutralize such risks through a mechanism; namely hedging.
 The objectives of Commodity futures:
 Hedging with the objective of transferring risk related to the possession of physical assets
through any adverse moments in price. Liquidity and Price discovery to ensure base mini-
mum volume in trading of a commodity through market information and demand supply
factors that facilitates a regular and authentic price discovery mechanism.
 Maintaining buffer stock and better allocation of resources as it augments reduction in in-
ventory requirement and thus the exposure to risks related with price fluctuation declines.
Resources can thus be diversified for investments.
 Price stabilization along with balancing demand and supply position. Futures trading
leads to predictability in assessing the domestic prices, which maintains stability, thus
safeguarding against any short term adverse price movements. Liquidity in Contracts of
the commodities traded also ensures in maintaining the equilibrium between demand and
supply.
 Flexibility, certainty and transparency in purchasing commodities facilitate bank financ-
ing. Predictability in prices of commodity would lead to stability, which in turn would
eliminate the risks associated with running the business of trading commodities. This
would make funding easier and less stringent for banks to commodity market players.

 Benefits of Commodity Futures Markets:

 The primary objectives of any futures exchange are authentic price discovery and an effi-
cient price risk management. The beneficiaries include those who trade in the commodi-
ties being offered in the exchange as well as those who have nothing to do with futures
trading. It is because of price discovery and risk management through the existence of fu-
tures exchanges that a lot of businesses and services are able to function smoothly.
1. Price Discovery:-Based on inputs regarding specific market information, the demand
and supply equilibrium, weather forecasts, expert views and comments, inflation rates,
Government policies, market dynamics, hopes and fears, buyers and sellers conduct trad-
ing at futures exchanges. This transforms in to continuous price discovery mechanism.
The execution of trade between buyers and sellers leads to assessment of fair value of a
particular commodity that is immediately disseminated on the trading terminal.
2. Price Risk Management: - Hedging is the most common method of price risk manage-
ment. It is strategy of offering price risk that is inherent in spot market by taking an equal
but opposite position in the futures market. Futures markets are used as a mode by
hedgers to protect their business from adverse price change. This could dent the prof-
itability of their business. Hedging benefits who are involved in trading of commodities
like farmers, processors, merchandisers, manufacturers, exporters, importers etc.
3. Import- Export competitiveness: - The exporters can hedge their price risk and improve
their competitiveness by making use of futures market. A majority of traders which are
involved in physical trade internationally intend to buy forwards. The purchases made
from the physical market might expose them to the risk of price risk resulting to losses.
The existence of futures market would allow the exporters to hedge their proposed pur-
chase by temporarily substituting for actual purchase till the time is ripe to buy in physi-
cal market. In the absence of futures market it will be meticulous, time consuming and
costly physical transactions.

4. Predictable Pricing: - The demand for certain commodities is highly price elastic. The
manufacturers have to ensure that the prices should be stable in order to protect their mar-
ket share with the free entry of imports. Futures contracts will enable predictability in do-
mestic prices. The manufacturers can, as a result, smooth out the influence of changes in
 their input prices very easily. With no futures market, the manufacturer can be caught be-
tween severe short-term price movements of oils and necessity to maintain price stability,
which could only be possible through sufficient financial reserves that could otherwise be
utilized for making other profitable investments.
5. Benefits for farmers/Agriculturalists: - Price instability has a direct bearing on farmers
in the absence of futures market. There would be no need to have large reserves to cover
against unfavorable price fluctuations. This would reduce the risk premiums associated
with the marketing or processing margins enabling more returns on produce. Storing
more and being more active in the markets. The price information accessible to the farm-
ers determines the extent to which traders/processors increase price to them. Since one of
the objectives of futures exchange is to make available these prices as far as possible, it is
very likely to benefit the farmers. Also, due to the time lag between planning and produc-
tion, the market-determined price information disseminated by futures exchanges would
be crucial for their production decisions.
6. Credit accessibility: - The absence of proper risk management tools would attract the
marketing and processing of commodities to high-risk exposure making it risky business
activity to fund. Even a small movement in prices can eat up a huge proportion of capital
owned by traders, at times making it virtually impossible to pay back the loan. There is a
high degree of reluctance among banks to fund commodity traders, especially those who
do not manage price risks. If in case they do, the interest rate is likely to be high and
terms and conditions very stringent. This posses a huge obstacle in the smooth function-
ing and competition of commodities market. Hedging, which is possible through futures
markets, would cut down the discount rate in commodity lending.

7. Improved product quality: - The existence of warehouses for facilitating delivery with
grading facilities along with other related benefits provides a very strong reason to up-
grade and enhance the quality of the commodity to grade that is acceptable by the ex-
 change. It ensures uniform standardization of commodity trade, including the terms of
quality standard: the quality certificates that are issued by the exchange-certified ware-
houses have the potential to become the norm for physical trade.

2.2 OVERVIEW OF THE INDIAN COMMODITY MARKET:

 Despite intermittent curbs, India‘s six-year-old commodity futures market has seen a
steady stream of new entrants, drawn by the promise of richer rewards. The intense
growth, even in the absence of basic reforms, has attracted financial institutions, trading
companies and banks to set up large commodity bourse. Since, Indian Commodity Ex-
change (ICEX), promoted by India bulls Financial Services Ltd in partnership with
MMTC is going to start its operation from November 2009; it is expected to create an ex-
tensive competition among national level commodity exchanges. Commodity derivatives
market of India is drawing attention from all over the world, albeit FMC had banned nine
commodities since early 2007, out of which 4 are still out of trade and even financial in-
stitutions and foreign entities are barred from trading in the market. Even, industry play-
ers are of the view that commodity market regulator (FMC) should permit banks and fi-
nancial institutions to trade in commodity futures, allow options, exchange-traded indices
and some more powers to the market regulator from Ministry of Consumer Affairs to de-
velop the market.

2.3 EVOLUTION AND HISTORY OF COMMODITY MARKETS:

 The history of organized commodity derivatives in India goes back to the nineteenth cen-
tury when Cotton Trade Association started futures trading in 1875, about a decade after
they started in Chicago. Over the time datives market developed in several commodities
in India. Following Cotton, derivatives trading started in oilseed in Bombay (1900), raw
jute and jute goods in Calcutta (1912), Wheat in Hapur (1913) and Bullion in Bombay
(1920).
 However many feared that derivatives fuelled unnecessary speculation and were detri-
mental to the healthy functioning of the market for the underlying commodities, resulting
in to banning of commodity options trading and cash settlement of commodities futures
after independence in 1952. The parliament passed the Forward Contracts (Regulation)
Act, 1952, which regulated contracts in Commodities all over the India. The act prohib-
ited options trading in Goods along with cash settlement of forward trades, rendering a
crushing blow to the commodity derivatives market. Under the act only those associa-
tions/exchanges, which are granted reorganization from the Government, are allowed to
organize forward trading in regulated commodities. The act envisages three tire regula-
tions: (i) Exchange which organizes forward trading in commodities can regulate trading
on day-to-day basis; (ii) Forward Markets Commission provides regulatory oversight un-
der the powers delegated to it by the central Government. (iii) The Central Government-
Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distri-
bution- is the ultimate regulatory authority.
 The commodities future market remained dismantled and remained dormant for about
four decades until the new millennium when the Government, in a complete change in a
policy, started actively encouraging commodity market. After Liberalization and Global-
ization in 1990, the Government set up a committee (1993) to examine the role of futures
trading. The Committee (headed by Prof. K.N. Kabra) recommended allowing futures
trading in 17 commodity groups. It also recommended strengthening Forward Markets
Commission, and certain amendments to Forward Contracts (Regulation) Act 1952, par-
ticularly allowing option trading in goods and registration of brokers with Forward Mar-
kets Commission. The Government accepted most of these recommendations and fu-
tures’ trading was permitted in all recommended commodities. It is timely decision since
 internationally the commodity cycle is on upswing and the next decade being touched as
the decade of Commodities.
 Commodity exchange in India plays an important role where the prices of any commod-
ity are not fixed, in an organized way. Earlier only the buyer of produce and its seller in
the market judged upon the prices. Others never had a say.
 Today, commodity exchanges are purely speculative in nature. Before discovering the
price, they reach to the producers, end-users, and even the retail investors, at a grassroots
level. It brings a price transparency and risk management in the vital market. A big dif-
ference between a typical auction, where a single auctioneer announces the bids and the
Exchange is that people are not only competing to buy but also to sell. By Exchange rules
and by law, no one can bid under a higher bid, and no one can offer to sell higher than
someone else’s lower offer. That keeps the market as efficient as possible, and keeps the
traders on their toes to make sure no one gets the purchase or sale before they do. Since
2002, the commodities future market in India has experienced an unexpected boom in
terms of modern exchanges, number of commodities allowed for derivatives trading as
well as the value of futures trading in commodities, which crossed $ 1 trillion mark in
2006. Since 1952 till 2002 commodity datives market was virtually non- existent, except
some negligible activities on OTC basis.
 In India there are 25 recognized future exchanges, of which there are three national level
multi-commodity exchanges. After a gap of almost three decades, Government of India
has allowed forward transactions in commodities through Online Commodity Exchanges,
a modification of traditional business known as Adhat and Vayda Vyapar to facilitate bet-
ter risk coverage and delivery of commodities. The three exchanges are: National Com-
modity & Derivatives Exchange Limited (NCDEX) Mumbai, Multi Commodity Ex-
change of India Limited (MCX) Mumbai and National Multi-Commodity Exchange of
India Limited (NMCEIL) Ahmedabad. There are other regional commodity exchanges
situated in different parts of India.

2.4 THE SIZE OF THE MARKET:

  The trading of commodities consists of direct physical trading and derivatives trading.
Exchange traded commodities have seen an upturn in the volume of trading since the start
of the decade. This was largely a result of the growing attraction of commodities as an as-
set class and a proliferation of investment options which has made it easier to access this
market.
 The global volume of commodities contracts traded on exchanges increased by a fifth in
2010, and a half since 2008, to around 2.5 billion million contracts. During the three
years up to the end of 2010, global physical exports of commodities fell by 2%, while the
outstanding value of OTC commodities derivatives declined by two-thirds as investors
reduced risk following a five-fold increase in value outstanding in the previous three
years.
 Trading on exchanges in China and India has gained in importance in recent years due to
their emergence as significant commodities consumers and producers. China accounted
for more than 60% of exchange-traded commodities in 2009, up on its 40% share in the
previous year.
 Commodity assets under management more than doubled between 2008 and 2010 to
nearly $380bn. Inflows into the sector totaled over $60bn in 2010, the second highest
year on record, down from the record $72bn allocated to commodities funds in the previ-
ous year. The bulk of funds went into precious metals and energy products. The growth
in prices of many commodities in 2010 contributed to the increase in the value of com-
modities funds under management.

2.5 HOW TO COMMODITY MARKET WORK:-

 There are two kinds of trades in commodities. The first is the spot trade, in which one
pays cash and carries away the goods. The second is futures trade. The underpinning for
futures is the warehouse receipt. A person deposits certain amount of say, good X in a
ware house and gets a warehouse receipt. Which allows him to ask for physical delivery
of the good from the warehouse? But someone trading in commodity futures need not
necessarily posses such a receipt to strike a deal.
 A person can buy or sale a commodity future on an exchange based on his expectation of
where the price will go. Futures have something called an expiry date, by when the buyer
or seller either closes (square off) his account or give/take delivery of the commodity.
The broker maintains an account of all dealing parties in which the daily profit or loss
due to changes in the futures price is recorded. Squiring off is done by taking an opposite
contract so that the net outstanding is nil. For commodity futures to work, the seller
should be able to deposit the commodity at warehouse nearest to him and collect the
warehouse receipt.
 The buyer should be able to take physical delivery at a location of his choice on present-
ing the warehouse receipt. But at present in India very few warehouses provide delivery
for specific commodities.
 Following diagram gives a fair idea about working of the Commodity market.
  Today Commodity trading system is fully computerized. Traders need not visit a com-
modity market to speculate. With online commodity trading they could sit in the confines
of their home or office and call the shots.
 The commodity trading system consists of certain prescribed steps or stages as follows:

1. Trading: - At this stage the following is the system implemented-

- Order receiving
- Execution
- Matching
- Reporting
- Surveillance
- Price limits
- Position limits

2. Clearing: - This stage has following system in place-

- Matching
- Registration
- Clearing
- Clearing limits
- Notation
- Margining
- Price limits
- Position limits
- Clearing house.

3. Settlement: - This stage has following system followed as follows-

- Marking to market
- Receipts and payments
- Reporting
- Delivery upon expiration or maturity.
 CURRENT SCENARIO IN INDIAN COMMODITY MARKET:
 India is among top 5 producers of most of the Commodities, in addition to being a major
consumer of bullion and energy products.
 Agriculture contributes about 22% GDP of Indian economy. It employees around 57% of
the labor force on total of 163 million hectors 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 centre for trading of commodity derivatives.
 Trends in volume contribution on the three National Exchanges:-
 Pattern on Multi Commodity Exchange (MCX):
- MCX is currently largest commodity exchange in the country in terms of trade
volumes, further it has even become the third largest in bullion and second largest
in silver future trading in the world. Coming to trade pattern, though there are
about 100 commodities traded on MCX, only 3 or 4 commodities contribute for
more than 80 percent of total trade volume. As per recent data the largely traded
commodities are Gold, Silver, Energy and base Metals.
- Incidentally the futures’ trends of these commodities are mainly driven by inter-
national futures prices rather than the changes in domestic demand-supply and
hence, the price signals largely reflect international scenario.
- Among Agricultural commodities major volume contributors include Gur, Urad,
and Mentha Oil etc. Whose market sizes are considerably small making then vul-
nerable to manipulations.
 Pattern on National Commodity & Derivatives Exchange (NCDEX):
- NCDEX is the second largest commodity exchange in the country after MCX.
However the major volume contributors on NCDEX are agricultural commodities.
But, most of them have common inherent problem of small market size, which is
making them vulnerable to market manipulations and over speculation. About 60
percent trade on NCDEX comes from guar seed, chana and Urad (narrow com-
modities as specified by FMC).
 Pattern on National Multi Commodity Exchange (NMCE):
-

-
NMCE is third national level futures exchange that has been largely trading in
Agricultural Commodities.
Trade on NMCE had considerable proportion of commodities with big market
size as jute rubber etc. But, in subsequent period, the pattern has changed and
slowly moved towards commodities with small market size or narrow commodi-
ties.
Analysis of volume contributions on three major national commodity exchanges
reveled the following pattern, Major volume contributors: -
 Majority of trade has been concentrated in few commodities that are
-
-

-
Non Agricultural Commodities (bullion, metals and energy)
Agricultural commodities with small market size (or narrow commodi-
ties) like guar, Urad, Mentha etc.
Advertisement

 Structure of Indian Exchange Based Commodity Market:

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Chapter: - 2
Literature Review
Chapter: - 3
Research Methodology
Objective of Study:

- To know about people awareness about commodity market.

- To study the concepts of commodities Trading in India.
- To study of The Various Trends In Commodity Trading
- To Study The Role of Commodities In Indian Financial Markets
- To study In detail The Role of Futures And Forwards.
- To analyze the present situation of the commodities in
- Indian market and suggest for any improvements there after
- Thus, this was the influencing factor which drove me to do this research. The research
was mainly done by me in Ahmedabad.
- According to me, this research will help finance sector in Ahmedabad to give a best ser-
vice to the customer and his demand in auto sector.
Hypothesis:

- Hypothesis is a formal question that he intends to resolve. A hypothesis may be de-

fined as a proposition set forth as an explanation for the occurrence of some specified
group of phenomena either asserted merely as a provisional conjecture to guide some
investigation or accepted as highly probable in the light of established facts.
- In this research study I have done one Chi-square tests for hypothesis testing with two
different variables.
 If the H0 is equal in 0.05%
 If the H1 is not equal than hypothesis should be rejected.

Sampling Procedure and Sample Size

- Population: Consumers of Auto loan and Bank up in Ahmedabad.

- The sampling unit is Consumers of Bank and Car
- Sample size: The sample size of the report is 100 Respondents.
- Sampling method for the study: In this report questionnaire method is used to conduct
the research. 100 respondents by random are taken and given one questionnaire each. On
the basis of which the report is made by me.
- To achieve the object of studying the commodities market in stock market data have been
collected. Research
- Methodology carried for this study is purely from Secondary data from various web sites men -
tioned below.

 WEBSITES:

http://www.indiainfoline.com/

http://www.investopedia.com/

http://business.mapsofindia.com/

Techniques of Data Analysis

 - I have given total 14 questions in the questionnaire including two independent vari-
able questions (gender, age). I have sorted out the frequency distribution of all the
variables. Then cross tabulation is done to get the age and gender wise discrimination
of the dependent variables. One Chi-square tests are also done to do the hypothesis
testing. I have used IBM SPSS software for analyzing the raw data and MS-EXEL for
graphical representation.

Limitations:

- While doing the survey, there were certain limitations faced by me. The limitations
were as follows:
- There was time constraint for the field work given to me. While doing survey, I got
limited time period for completion of the project.
- The response of some of the consumers was not up to mark. So the survey may give
the biased results.
- The sample size taken for each of the survey in this project was very less and limited.
- The study is limited to “Commodity Trading – Investment and Speculation” in the In-
dian context.
1. The study cannot say as totally perfect as it is subjected to any alteration.

2. The study is not based on the international perspective of Commodity markets. It is

limited to national level only.

3. The finding of the study is based on information which was given by the
respondent. It may be possible that the respondents ware not provided the right
information.

4. There can be business from researcher or responds side.

Chapter: - 4 Analysis and Interpretation

SECTION-1 UNIVARIATE ANALYSIS

Table: 1.1 Genders

GENDER
GENDER Frequency Percent
Male 96 96.0
Female 4 4.0
Total 100 100.0
Figure: 1.1 GENDERS

Gender

4%

Male
Female

96%

 From the above table shows that out of 100 people of a sample male is 96 and female is
4.And also Pie-chart shows that 96% are male and 4% are female. So male are more than
female. So, male are more than female in this sample.

Table: 1.2 Age of respondent

 DESCRIPTIVE(WHAT IS YOUR AGE)
Std.
Ran Mini Maxi Mea Devia Varia Skew Kurt
N ge mum mum Sum n   tion nce ness   osis  
Std Std Std
. . .
Stati Stati Statist Statist Stati Stati Err Statist Statis Statist Err Stati Err
stic stic ic ic stic stic or ic tic ic or stic or
100 32 18 50 2714 27.1 .61 6.117 37.41 1.361 .24 2.31 .47
4 2 5 1 0 8
100                        

 From the above table minimum age of the people is 18 and maximum age is 50.Mean, Std.
Deviation, Skewness and Kurtosis is 27.14, 6.117, 1.361, and 2.310.

Table: 1.3 Which of the following will best describe your occupation?
 Which of the following will best describe your occupation?
  Frequency Percent
Service 66 66.0
Business 8 8.0
Student 22 22.0
Others 4 4.0
Total 100 100.0
Figure: 1.2 Which of the following will best describe your occupation?

Which of the following will best describe your occupation?

4%

22% Service
Business
Student
Others

8%
66%

Table 1.4 Incomes

 Income Yearly Descriptive Statistics
Mini Max Std.
Ran mu imu Devi Varianc Skewne
N ge m m Sum Mean ation e ss Kurtosis
St St
d. d.
Stat Std. Stat Er Stat Er
isti Stat Stati Stati Stati Stati Erro Statis isti ro isti ro
  c istic stic stic stic stic r tic Statistic c r c r
Wh 100 100 0 1000 164 1641 1454 1454 2114741 2.1 .2 10. .4
at is 000 000 140 40.0 2.15 21.50 4545.45 78 41 440 78
you 0 00 0 1 6 5
r
ann
ual
inc
om
e?
Table: 1.5. Which among these investment criteria you usually prefer?

Which among these investment criteria you usually prefer?

  Frequency Percent
Bank deposits 72 72.0

Mutual fund 6 6.0

Stocks 3 3.0
Others 19 19.0
Total 100 100.0
Figure: 1.3. Which among these investment criteria you usually prefer?

Which among these investment criteria you usually prefer?

19%

Bank deposits
3% Mutual fund
Stocks
6%
Others

72%
Table: 1.6 Are you aware of commodity market?

Are you aware of commodity market?

  Frequency Percent
Yes 77 77.0
No 23 23.0
Total 100 100.0
Figure: 1.4. Are you aware of commodity market?

Are you aware of commodity market?

23%

Yes
No

77%
Table: 1.7. If yes have you invested in commodity market?

If yes have you invested in commodity market?

  Frequency Percent
Yes 7 7.0
No 93 93.0
Total 100 100.0
Figure: 1.5. If yes have you invested in commodity market?

If yes have you invested in commodity market?

7%

Yes
No

93%
Table: 1.8. How do you come to know about commodity future trading?

How do you come to know about commodity future trading?

  Frequency Percent
Friends/colleagues 47 47.0

Billboards /Advt/brochure 26 26.0

Agents/ brokers 24 24.0

Other specify 3 3.0

Total 100 100.0
Figure: 1.6. How do you come to know about commodity future trading?

How do you come to know about commodity future trading?

3%

24% Friends/colleagues
Billboards /Advt/brochure
Agents/ brokers
47%
Other specify

26%
Table: 1.9. Which commodity you prefer for trading?

Which commodity you prefer for trading?

  Frequency Percent
Agro products(Jeera, Soybean etc) 10 10.0

Base metals (aluminum, nickel) 12 12.0

Precious metals (gold/Silver) 53 53.0

Energy Products(crude oil) 15 15.0

Ferrous metals (iron, steel) 10 10.0

Figure: 1.7. Which commodity you prefer for trading?

Which commodity you prefer for trading?

10% 10%

Agro products(Jeera, Soybean etc)

12%
15% Base metals (aluminum, nickel)
Precious metals (gold/Silver)
Energy Products(crude oil)
Ferrous metals (iron, steel)

53%
Table: 1.10. Which factor do you normally consider while trading in commodity market?

Which factor do you normally consider while trading in commodity market?

  Frequency Percent
Price 4 4.0
Season 6 6.0
Risk 41 41.0
Return 39 39.0
Demand & supply 10 10.0

Total 100 100.0

Figure: 1.8. Which factor do you normally consider while trading in commodity market?

Which factor do you normally consider while trading in commodity

market?

4%
10% 6%
Price
Season
Risk
Return
Demand & supply
39% 41%
Table: 1.11 Commodity future market provides benefits?

Commodity future market provides benefits?

  Frequency Percent
Strongly agree 3 3.0
Agree 24 24.0
Neutral 67 67.0
Disagree 6 6.0
Total 100 100.0
Figure: 1.9. Commodity future market provides benefits?

Commodity future market provides benefits?

6% 3%

24% Strongly agree

Agree
Neutral
Disagree

67%

Table: 1.12. What made you not to invest in commodity future trading?
 What made you not to invest in commodity future trading?
  Frequency Percent
Not interested 10 10.0
Info non availability 17 17.0

High investment 34 34.0

Complex understanding 26 26.0

High risk 13 13.0

Total 100 100.0
Figure: 1.10. What made you not to invest in commodity future trading?

What made you not to invest in commodity future trading?

13% 10%

Not interested
17% Info non availability
High investment
Complex understanding
26% High risk

34%

Table: - 1.13. Are you planning for investing &trading in commodity future market in future?
 Are you planning for investing &trading in commodity future market in future?

  Frequency Percent
Yes 27 27.0
No 73 73.0
Total 100 100.0
Figure: - 1.11. Are you planning for investing &trading in commodity future market in future?

Are you planning for investing &trading in commodity future market in

future?

27%
Yes
No

73%

Section-2 Vi variant
Table: 1.14. Are you aware of commodity market? * If yes have you invested in commodity
market?

Are you aware of commodity market? * If yes have you invested in commodity market?
Crosstabulation
If yes have you invested in commodity
  market?  
  Yes No  
Yes 7 70  
No 0 23  
  7 93  
Figure: 1.12. Are you aware of commodity market? * If yes have you invested in commodity
market?

Are you aware of commodity market? * If yes have you invested in

commodity market? Crosstabulation

70

If yes have you invested in

commodity market? Yes
If yes have you invested in
commodity market? No

23

7
0
Yes No

Table: 1.15. Are you aware of commodity market? * How do you come to know about
commodity future trading?
 Are you aware of commodity market? * How do you come to know about commodity
future trading? Crosstabulation

Billboards Agents/ Other

  Friends/colleagues /Advt/brochure brokers specify
Yes 41 26 10 0
No 6 0 14 3
  47 26 24 3
Figure: 1.13. Are you aware of commodity market? * How do you come to know about
commodity future trading?

Are you aware of commodity market? * How do you come to know

about commodity future trading? Crosstabulation
41

26
Yes
No

14
10
6
3
0 0
Friends/colleagues Billboards / Agents/ brokers Other specify
Advt/brochure

Table: 1.16. If yes have you invested in commodity market? * Which factor do you normally
consider while trading in commodity market?
If yes have you invested in commodity market? * Which factor do you normally consider
while trading in commodity market? Crosstabulation
Demand &
  Price Season Risk Return supply
Yes 2 0 3 2 0
No 2 6 38 37 10
  4 6 41 39 10
Figure: 1.14. If yes have you invested in commodity market? * Which factor do you normally
consider while trading in commodity market?

If yes have you invested in commodity market? * Which factor do you

normally consider while trading in commodity market?

38 37

Yes
No

10
6
2 2 3 2
0 0
Price Season Risk Return Demand &
supply

Table: 1.17. Are you planning for investing &trading in commodity future market in future? *
Commodity future market provides benefits?
 Are you planning for investing &trading in commodity future market in future? *
Commodity future market provides benefits? Crosstabulation

  Strongly agree Agree Neutral Disagree

Yes 1 11 15 0
No 2 13 52 6
  3 24 67 6
Figure: 1.15. Are you planning for investing &trading in commodity future market in future? *
Commodity future market provides benefits?

Are you planning for investing &trading in commodity future market in

future? * Commodity future market provides benefits?

52

Yes
No

15
13
11
6
1 2
0
Strongly agree Agree Neutral Disagree

Section- 3 Hypothesis
Table: 1.18 Chi-Square Tests.
Chi-Square Tests
Asymp. Exact Exact
Sig. (2- Sig. (2- Sig. (1-
  Value df sided) sided) sided)
Pearson 2.248a 1 .134    
Chi-Square
Continuity 1.069 1 .301    
Correctionb
Likelihood 3.814 1 .051    
Ratio
Fisher's       .347 .150
Exact Test
Linear-by- 2.226 1 .136    
Linear
Associatio
n
N of Valid 100        
Cases

a. 1 cells (25.0%) have expected count less than 5. The minimum expected count is1.61.

b. Computed only for a 2x2 table

Table: 1.19 Are you aware of commodity market? * If yes have you invested in commodity
market?
 Are you aware of commodity market? * If yes have you invested in commodity market?
Crosstabulation
  If yes have you invested in commodity market? Total
Are you     Yes No  
aware of Yes Count 7 70 77
commodit No Count 0 23 23
y market?   % within If yes have you 0.0% 24.7% 23.0%
invested in commodity
market?
Total   Count 7 93 100
    % within If yes have you 100.0% 100.0% 100.0%
invested in commodity
market?
Figure: 1.16. Are you aware of commodity market? * If yes have you invested in commodity
market?

Are you aware of commodity market? * If yes have you invested in

commodity market?

70

Yes Count
No Count

23

7
0
1 2

Chapter: - 5 Finding
Findings:
 In my analysis I took sample of 100 people. And I found the more responded people are
male and less female. Because of many reason female are not share their experience with
unknown people. And I have done my research on Consumer awareness about Commod-
ity market.
 I found the very few people are interesting in commodity market for investment.
 In my sample of 100 people more people are not known about commodity market.
 In my research I found the more number of people aware by their friends and colleagues.
 In my research I found steal people are not clear for the topics of commodity market.
 People are not known what is a commodity market if they are know they ready to invest-
ing their saving in commodity market.
 In my research analysis result was very less people are looking for investing their money
in share market because of information was not available and lake of knowledge.
 Many people steal think the share market was not good for the investment.

Suggestion:

 In my research experience I found the people steal no aware about commodity market.
 And that’s point was very helpful to the company to catch a customer by the share
knowledge about commodity market and to give right suggestion to the customer.
 If you try to catch customer to reach customer and giving them right suggestion about
investment plan.
 In my two month internship program I found the people looking a right area to invest
their money.

Chapter: - 6 Conclusion
 The study shows that most of the consumers of the Investor are salaried people. My
research is on 100 respondents of Ahmadabad, Gujarat. In my research all people are
working person in many different sectors. The respondents who belongs to middle-
class family.
 And I found the more number of people to prefer to invest their saving in Banking.
 And I realized the company should make awareness program started for the general
public.
 And the youth also a future customer for the company.
 In this scenario the Company should be go with increase and changes their strategy in
Commodity sectors.
 In my suggestion people are more like to invest their saving for the future proposes.
And also company should take positive action for the commodity market in invest-
ment plan.
Chapter: - 7 Bibliography
http://www.indiainfoline.com/

http://www.swastika.co.in/

http://www.investopedia.com/

http://business.mapsofindia.com/

http://www.managementparadise.com/

http://www.scribd.com/

http://www.gujaratmba.com/

http://www.citesales.com/

http://www.mcxindia.com/

http://www.commodityonline.com/

http://business.mapsofindia.com/

http://www.moneycontrol.com/

http://www.icexindia.com/

http://www.ncdex.com/

http://businesstoday.intoday.in/

http://economictimes.indiatimes.com/

http://www.slideshare.net/

https://www.linkedin.com/

http://www.nationalspotexchange.com/

http://www.nmce.com/

Chapter: - 8 Annexure
 QUESTIONNAIRE

NAME : __________________________________
AGE : __________________________________
ADDRESS : __________________________________
CONTACT NO: __________________________________
EMAIL ID : __________________________________

1) Which of the following will best describe your occupation

(Note: please tick below the option you want to choose)

1. Service 2. Business 3. Student 4. Profession 5. Others

Ans. ___________________

2) What is your annual income?

Ans. _________________

3) Which among these investment criteria you usually prefer?

1. Bank deposits 2.Mutual fund

3. Stocks 4. Commodity future trading

5. Others

4) Are you aware of commodity market?

1. Yes 2.No

5) If yes have you invested in commodity market?

(If no directly go to question 10)

1. Yes 2.No

6) How do you come to know about commodity future trading?

1. Friends/colleagues 2. Billboards /Advt/brochure

3. Agents/ brokers 4. Other specify______________

7) Which commodity you prefer for trading?
 1. Agro products (Jeera, Soybean etc) 2. Base metals (aluminum, nickel)

3. Precious metals (gold/Silver) 4.Energy Products (crude oil)

5. Ferrous metals (iron, steel)

8) Which factor do you normally consider while trading in commodity market?

1. Price 2. Season 3. Risk 4. Return 5. Demand & supply

9) Commodity future market provides benefits?

1. Strongly agree 2. Agree 3. Neutral 4. Disagree 5. Strongly disagree

10) What made you not to invest in commodity future trading?

1. Not interested 2. Info non availability 3. High investment

4. Complex understanding 5. High risk

11) Are you planning for investing &trading in commodity future market in future?

1. Yes 2.No

Thank you for giving your important time………………..