“STUDY OF COMMODITY MARKET”
Marwadi Shares & Finance Ltd.
SUBMITTED TO PUNE UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MANAGEMENT OF BUSINESS ADMINISTRATION (MBA)
Submitted By: ROHIT PARMAR (Batch 2006-08)
Guided By:Prof. MAHESH HALALE
BRACT’s Vishwakarma Institute of Management, Kondhwa Pune- 411014 1
ACKNOWLEDGEMENT It is great pleasure for me to acknowledge the kind of help and guidance received to me during my project work. I was fortunate enough to get support from a large number of people to whom I shall always remain grateful. I would like to express my sincere gratitude to Mr. Pratik Tanna and Mr. Ravi Tandon for giving me this opportunity to undergo this lucrative project with Marvadi Finance Pvt. Ltd. and also for their great guidance and advice on this project, without which I will not be able to complete this project. I am very thankful to our Director Sir Dr. Sharad Joshi for giving me valuable suggestion and encouragement to bring out good project. I am very thankful to my mentor Prof. Mr. Mahesh Halale for him inspiration and for initiating diligent efforts and expert guidance in course of my study and completion of the project and I am very thankful to my project guide for giving me timely and concrete guidance for making this project successful. I would like to thankful to customers and staff members of Marwadi Shares & Finance Pvt. Ltd. For helped me during the project report and providing me more and more valuable information for my project report. I would thank to God for their blessing and my Parents also for their valuable suggestion and support in my project report. I would also like to thank our friends and those who have helped us during this project directly or indirectly.
Rohit Parmar .
Sr. No. 1 2 3 4 5 6 7 8 9 10 11
Particulars EXECUTIVE SUMMARY OBJECTIVE AND SCOPE OF THE PROJECT INTRODUCTION COMPANY PROFILE ABOUT THE COMMODITY RESEARCH METHODOLOGY DATA ANALYSIS RESEARCH FINDING AND CONCLUSION QUESTIONNAIRE SUGGESTION AND RECOMMENDATION BIBLIOGRAPHY
Page No. 4 5 6 8 16 62 64 75 77 79 80
1. EXECUTIVE SUMMARY
One of the interesting developments in financial market over the last 15 to 20 years has been the growing popularity of derivatives. In many situations, both hedgers and speculators find it more attractive to trade a derivative on an asset, commodity than to trade asset and commodity itself. Some commodity derivatives are traded on exchanges. In this report I have included history of commodity market. Than I have included commodity market in India. And after that I have discussed the mechanism of trading in commodity market in India. In this report I have taken a first look at forward, futures and options contract and other risk management instruments. Than after I have discuss the main components of future commodity trading like contract size, what actual margin is and delivery system etc. There are mainly three types of traders: hedgers, speculators and arbitrageurs. In the next section I discuss about the two major commodity exchanges in India that is MCX AND NCDEX. How they are worked for developing this commodity market in India. And I have also given the list of other commodity exchanges in India. Put / call ratio (P/C Ratio) is a market sentiment indicator that shows the relationship between the numbers of put to calls traded. One can use put/call ratio as market indicator .Then after I have discussed about the present scenario of commodity market in India. In the next I have tried to analyze the trading pattern and investment pattern of commodity traders and other investors. This I have done through the help of QUESTIONER, which contains 15 questions. On the basis of different charts prepared, I have at the end given the research findings and conclusion. And on the basis of my findings I have given suggestion and recommendation
2. OBJECTIVE AND SCOPE OF THE PROJECT