broking research

1. A
Summer Internship Project Report
On
“A s t u d y o n c o m m o 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,
Submitted To:
Harshit S. Gajera
GTU
(Enroll: 127220592010 )
Nitin R. Kashid
Guided By,
(Enroll: 127220592022)
Dr. Vishal Patidar

2. Industry Overview
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

3. Industry Overview
Why commodities market?
• Agriculture country
• Making money

4. Industry Overview
Commodities:

5. Industry Overview
Commodity futures exchanges
There are mainly two major exchange of commodity Market in India.

6. Industry Overview
Derivatives:
Meaning:
A derivative is a financial instrument, which derives its value from some
other financial price.
Types:
• Financial derivatives
• Commodity derivatives

7. Industry Overview
Types of derivatives contract:
DERIVATIVES
Options
Put
Call
Interest Rate
Forwards
Futures
Swaps
Commodity
Currency
Securiti-es

8. Company Information

9. 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

10. Company Information
Phone numbers:
Tel: 022 6140 4444
Fax: 022 6140 4427
Web sites:
Www. Prithvifinmart.com
E-mail address:
Prithvi@Prithvibroking.com
Prithvi@Prithvifinmart.com

11. Company Information
Main Location:
Rajasthan
Madhya Pradesh
Gujarat
Maharashtra

12. Company Information
Competitors:

13. 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

14. 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

15. Company Information

16. SWOT Analysis
Strength:
•
Experience
•
Client Satisfaction
•
Technology
•
Strong operation & research desk
•
Wide network

17. 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

18. 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

19. 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

20. Literature review

21. 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

22. 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)

23. 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

24. 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

25. Research Methodology

26. 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.

27. 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.

28. 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.

29. Research Methodology
Sample size
We have to select the sample size of the survey was 100 people.
METHODS OF DATA COLLECTION
Methods:
Secondary methods
Magazines
Questionnaire
Newspaper
Web sites
Books

30. Data Analysis

31. Data Analysis
Demographic Survey:
Gender
Age
50
12
Male
40
30
42
28
30
20
10
88
Female
Age
0
20-30 30-40 Above
40

32. Data Analysis
Conti…
Qualification
40
35
30
25
20
15
10
5
0
35
Occupation
38
27
Qualification
50
40
30
20
10
0
43
25
18
14
Occupation

33. Data Analysis
Where do you invest your saving?
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

34. Data Analysis
Securities
90
80
70
60
50
40
30
20
10
0
69
79
74
57
43
54
49
37
23
Securities
0

35. Data Analysis
If you invest in stock market, where do you invest your savings?
Equity
77
Markets
Commodity
37
Derivatives
42
Market
100
80
77
60
37
40
42
Commodity
Derivatives
20
0
Equity
Market

36. Data Analysis
Which exchange you prefer to deal with?
Name of exchange
No of people
MCX
16
NCDEX
21
Exchange
MCX
43%
NCDEX
57%

37. Data Analysis
How you reach at investment decision?
Factors
No. of peoples
Self analysis
31
Tips from exports
27
Tips from friends / relatives
18
Business channels
14
Newspapers
10
Others
00

38. Data Analysis
Factors
35
30
25
20
15
10
5
0
31
27
18
14
10
0
Factors

39. Data Analysis
Which factor plays a crucial role when you make a decision to
invest in stock Market?
Factors
Nos.
Risk reduction
28
Exploratory Motive
20
Influence Benefit
25
Investment
19
Arbitrage Benefit
08

40. Data Analysis
Factors
30
28
25
25
20
20
19
15
Factors
10
8
5
0
Risk
reduction
Exploratory
Motive
Influence
Benefit
Investment
Arbitrage
Benefits

41. Data Analysis
Duration of attachment with commodity market?
Less than 1
1 to 5 year 5 to 10 year
Duration
year
06
13
15
Above 10
year
03
Duration
20
15
10
5
0
13
15
6
3
Less then 1 01 - 05 year 05 - 10 year More then
year
10 year
Duration

42. Data Analysis
Which of the following product prefer by you for your investment?
Products
Nos.
Metal
27
Crops
29
Spices
35
Bullion
45
Oil
52
Energy
37
Cereals & Pulse
26
Others
00

43. Data Analysis
Products
60
50
40
30
20
10
0
52
45
35
27
29
37
26
0
Products

44. Data Analysis
Which type of trading you prefer to deal with?
Type of trading
Nos.
Square up mode
16
Arbitrage
09
Intraday
13
Hedging
15
Delivery Based
07

45. Data Analysis
Trading
18
16
14
12
10
8
6
4
2
0
Trading
Square up Arbitrage Intraday
mode
Hedging
Delivery
Based

46. Data Analysis
How do you view your self?
Investor type
No. of people
Trader
20
Investor
57
Short term investors
23
Investor type
60
40
20
0
57
23
20
Investor type
Trader
Investor
Short term
investor

47. Data Analysis
In which of the company you would like to deal more and more
time?
Name of the company
No. of people
Prithvi finmart
67
Marwadi
18
Sherkhan
3
Angel
7
Max stock broking
5
Others
0

48. Data Analysis
Company
80
70
60
50
40
30
20
10
0
67
Company
18
3
Prithvi
finmart
Marwadi Shrekhan
7
5
Angel
Max Stock
broking

49. Findings

50. Findings
• Awareness
• Operators
• Qualities
• Process
• Centers
• Trepidation

51. Suggestion

52. Suggestion
• Opportunity
• Persuade
• Allocation
• Planning
• Range
• Inspiration

53. Limitation

54. Limitation
• Area
• Dimension
• Results
• Time

55. Conclusion

56. 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.

57. Thank You