SUMMER PROJECT PRESENTATION ON

“A STUDY ON Commodity market in Arihant capital market Ltd.’’

SUBMITTED TO (Oakbrook Business School)

GUJARAT TECHNOLOGICAL UNIVERSITY(MBA PROGRAMME)

SUBMITTED BYRajdeep Butani [ ENROLLMENT NO.: 148320592004] Janki Patel [ENROLLMENT NO.: 148320592070]

INTRODUCTION OF THE INDUSTRYFinancial Market A financial market is a market in which

people trade financial securities, commodities, and other tangible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include metals or agricultural goods and energy Etc.

Capital markets, Commodity markets, Money markets, Derivatives & Futures markets, Insurance markets, Foreign exchange markets

Introduction of topicA commodity is an article of commerce or trade

that is in demand and sold by various suppliers without any qualitative differentiation. It is a product that is the same no matter who produces it, such bullions, metals, agriculture, energy. The commodity market is a geographical location where the seller and buyer meet to transfer the ownership of goods from the former to the latter through negotiation at mutually agreed value. For a commodity market to be functioning ,the important ingredients are commodity, buyer and seller.

Introduction of the company ARIHANT capital markets ltd.

• Established in 1994

Products◦ Equity & Derivatives◦ Mutual funds◦ IPO◦ Currency◦ Commodities

Services◦ Online trading◦ Depository◦ Portfolio management

system◦ Advisory Services

LITERATURE REVIEWName(Year) Objectives Findings

UNCTED(2011) Commodity markets The functioning of commodity markets and the flow of information affects the trading decisions in the market.

DWIGHT,SCOTT&ROBERT(2010)

Agriculture futures market

The author brings out two important findings in agriculture futures market since 1995, firstly a rapid increase in open interest since late 2004 and a stabilization of index funds‟ percentage of open interest since 2006.

OBJECTIVES To understand the concept of commodity trading in

India. To assess the customers perception about the

commodity trading. To find out the most preferred mode of investment

among the respondents. To know about the different qualification of a person

effect on his investment In commodity market.

01.08.14

Research methodology

Sampling location – Ahmadabad citySample size – 200 respondents have been selected to this surveySampling units – The peoples are investing in commodity market.Analytical Techniques appliedAnova: Two-Factor Without ReplicationHypothesis:Ho: There is no significance difference between respondent of different

qualification and their perception about commodity market.H1: There is significance between difference respondent of different

qualification and their perception about commodity market.Sources of data: Primary data: QuestionnaireSecondary data: Manual, Book References, Report etc.

Q-1 Since how long you have been trading in commodity market?

Particular No of customerless than 1 Year 421-2 Year 552-3 Year 69Above 3 Year 34  200

21%

28%35%

17%

less than 1 Year

1-2 Year

2-3 Year

Above 3 Year

Q-2 What percentage of your income do you invest in commodity trading?

Particular No of customer

Under 5% 295-10% 10010-15% 54Above 15% 17  200

14%

50%

27%

9%

Under 5%

5-10%

10-15%

Above 15%

3.) Which term period you prefer for investment in commodities market?

Particular No of customerLong term 34Mid Term 59Short Term 42Trading 65  200

17%

30%

21%

33% Long turm

Mid Turm

Short Term

Treding

4.) You prefer to invest in commodities (futures) that have?

Particular No of customer

High Risk, High Return 73Medium Risk, Medium Return

93

low Risk low return 34  200 37%

47%

17%

High Risk,High Return

Mediam Risk,Medium Return

low Risk low return

5.) How often do you monitor your investment?

Particular No of customerDaily 60Monthly 65Quarterly 36Half Yearly 12Fort-nightly 24Annually 3  200

30%

33%

18%

6%

12%

2%

Daily

Monthly

Quarterly

Half Yearly

Fort-nigthly

Annually

6.) Do you know investment in commodities can be classified as an Asset?

Particular No of customerYes 137No 63  200

69%

32%

Yes No

7.) What percentage of your income do you invest in commodity trading?

Particular No of customerBullions 43metals 49Agri 37Energy 27Mixed 44  200

22%

25%

19%

14%

22%Bullions

metals

Agri

Energy

Mixed

8.) What is Overall perception about Commodity market?

Particular No of customerPositive 132Negative 68  200

66%

34%positive

Nega-tive

9.) Rank the investment product on the basis of your preference of investment?

1 2 3 4 5 6 7 8 9 100

20

40

60

80

100

120

3949 52

11 146 2

8 127

58

37

25

8

2212

22

104 2

2214

25

63

17 1813 12 8 8

1421

10

40

61

15 13 11 1148 12 12 13

8

27

65

1520 20

7 7 310 10 14

25 29

62

33

7 7 611 8 7

22

7

29

96

Equity market commodity mutual fund bank deposit insurance Provident fund real estate Postal service

chit fund

Rank Particular Avarage

1Equity market 3.495

2 commodity 3.555

3 currency 4

4 mutual fund 4.545

5 bank deposit 4.795

6 insurance 5.365

7Provident fund 6.385

8 real estate 7.045

9 Postal service 7.495

10 chit fund 7.98

10.)

1%

7%

6%

22%

66%

safety

1 2 3

4 5

Particular 1 2 3 4 5Safety 1 14 11 43 131Capital Growth 5 1 26 89 79Return 1 3 6 74 116Liquidity 2 6 28 111 53Tax Benefits 3 19 36 78 64

State your expectation on investment alternatives by ticking according to its importance.

.

Rank Particular Average

1 Return 4.49

2 Safety 4.44

3 Capital Growth 4.18

4 Liquidity 4.035

5 Tax Benefits 2.52

Age:

Particular No of customer

below 20 17Between 20-30 107Between 30-40 72above 40 4  200

9%

54%

36%

2%

below 20Between 20-30Between 30-40above 40

Gender:

Particular No of customer

Male 172Female 28  200

86%

14%

malefemale

Qualification:

Particular No of customerGraduate 118under graduate 18Post Graduate 64 

200

59%

9%

32% Graduate

under grad-uate

Post Graduate

Occupation:

ParticularNo of customer

Salaried 97Professional 28Business 31Student 44

200

49%

14%

16%

22%Salaried

Professional

Business

student

Annual income:Particular No of customerbelow 200000 61200000-400000 83400000-600000 46above 600000 10  200 31%

42%

23%

5%

below 200000

200000-400000

400000-600000

above 600000

FINDINGS Most of people who invest in commodity market, they

monitor their investment in monthly basis and daily basis .

All most people would like to trade in intraday but after analysis market as per the market condition investor can invest their money short term also. Hear you wont gain too much but risk level is law. 

On an average up to 42% people invest in commodity market whose income between 2,00,000-4,00,000. The people in this category they from the middle sector and the basic need of today is too high so that they invest in this type of market.

 

FINDINGS

Collected most of the people are complete their graduation and there were very less who are under graduate. Because a commodity market is risky & for a trading require knowledge about it script like quantity, quality ,delivery time.

  Most of people who invest in commodity market, they monitor their

investment in monthly basis and daily basis

CONCLUSIONFinally, In this type of market investors invest their money

by comparing different levels of profit. After being compared they invest and get returns on their money. By comparing with banking investment facilities , here investors get more returns, but its risky also. In this type of situation you should accept the formula of Buy, Stay(Hold) and sell. This one is the basic concept to get high returns. If you do something like that you can under estimate the loss in your investment, coz at the lower level you have purchased so you have to be relaxed.

Bibliography and Reference

www.m.moneycontrol.comhttps://www.arihantitrade.comhttp://www.ncdex.comhttp://www.mcxindia.com

Thank you