Commodity market in india


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Commodity market in india

  1. 1. Commodity Market in India Presented by: Arjun Ramakrishnan Anupam Iyer Bhoomika Diwan Chandni Agarwal Manish Singh Tarun Rustagi
  2. 2. Presentation Flow <ul><li>What is Commodity </li></ul><ul><li>Commodity trading traces in Indian History </li></ul><ul><li>Significance of Commodity Market </li></ul><ul><li>Who is controlling this Market and how </li></ul><ul><li>How Commodity trading is done </li></ul><ul><li>How can you make money in this Market (some tips from market) </li></ul>
  3. 3. What is Commodity <ul><li>A commodity is any good or service produced by human labour and offered as a product for general sale on the market </li></ul><ul><ul><li>- Karl Max </li></ul></ul><ul><li>Commodity is anything movable (a good) that has following characteristics </li></ul><ul><li>Fungible, i.e. the same no matter who produces it </li></ul><ul><li>Derivatives, i.e. involves further processing into number of products </li></ul><ul><li>Economic cost, i.e. production of it involves some cost </li></ul>
  4. 4. What is Commodity – they are every where <ul><ul><ul><ul><ul><li>Wheat in your bread </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Petrol in your vehicle </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Coffee on your table </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Sugar in your sweets </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Chana in your chhole </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Gold in your necklace </li></ul></ul></ul></ul></ul><ul><li>……… and so on ……. </li></ul>
  5. 5. Traces of commodity trading and Market in Indian History <ul><li>Around 1500 it started with trade of Spices through sea route </li></ul><ul><li>Pre-independence India was thriving future market for Gold, Silver, Cotton, Oil etc </li></ul><ul><li>There were more than 20 regional commodity specific exchanges </li></ul><ul><li>Around 1960 trading in commodities stopped by Government </li></ul><ul><li>It re-opened in 2003 </li></ul><ul><li>Emergence of national level de-mutualised online multi-commodity exchanges </li></ul><ul><li>3 National and 21 regional exchanges </li></ul><ul><li>Trade in over 60 commodities </li></ul>
  6. 6. Significance of Commodity Market <ul><li>~50% of GDP is Commodity related </li></ul><ul><li>18% of GDP is from Agriculture </li></ul><ul><li>5 th largest producer of Steel </li></ul><ul><li>Over 65% of 1 trillion population depend on agriculture directly </li></ul><ul><li>Over 7500 physical market yards </li></ul><ul><li>History of more than 150 years of derivatives trading </li></ul>
  7. 7. QUIZ <ul><li>In a Film GURU which commodity was traded – Specific name of the Commodity? </li></ul>
  8. 8. Who is controlling this Market and how 20 Other Regional Exchanges NMCE Commodity Exchanges MCX National Exchanges Regional Exchanges FMC – The Regulator NBOT NCDEX Leadership position with >90% share FMC : Forward Market Commission
  9. 9. Performance of Various exchanges in India
  10. 10. Break up of Top 10 commodities traded in these Exchanges
  11. 11. How Commodity trading is done <ul><li>Here talk about various instruments and how trading is done in these exchanges </li></ul>
  12. 12. How can you make money in this Market <ul><li>Pick out some tips from Market </li></ul><ul><li>In India how various funds have invested </li></ul><ul><li>Outside India how various funds or companies invested or investing … like goldman Sach, Berkshire Hathaway etc </li></ul>
  13. 13. QUIZ
  14. 14. <ul><li>Lets Make Money </li></ul>