This document is a presentation on a study of the commodity market in Arihant Capital Market Ltd. It includes an introduction to financial markets and commodities. It discusses the objectives of studying customers' perceptions of commodity trading. Research methodology included a survey of 200 respondents in Ahmedabad on their commodity investment habits and preferences. Key findings were that most monitor investments monthly/daily, prefer short-term trading, and invest between Rs. 200,000-400,000 income. Most respondents had a graduate degree. In conclusion, commodity investing provides higher returns than banking but is also higher risk.

1. 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 BY
Rajdeep Butani [ ENROLLMENT NO.: 148320592004]
Janki Patel [ENROLLMENT NO.: 148320592070]

2. INTRODUCTION OF THE INDUSTRY
Financial 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

3. Introduction of topic
 A 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.

4. 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

5. LITERATURE REVIEW
Name(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(201
0)
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.

6. 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

7. Research methodology
Sampling location – Ahmadabad city
Sample size – 200 respondents have been selected to this survey
Sampling units – The peoples are investing in commodity market.
Analytical Techniques applied
 Anova: Two-Factor Without Replication
Hypothesis:
 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: Questionnaire
 Secondary data: Manual, Book References, Report etc.

8. Q-1 Since how long you have been trading in commodity market?
Particular No of customer
less than 1 Year 42
1-2 Year 55
2-3 Year 69
Above 3 Year 34
200
21%
27%35%
17%
less than 1 Year
1-2 Year
2-3 Year
Above 3 Year

9. Q-2 What percentage of your income do you invest in commodity
trading?
Particular No of customer
Under 5% 29
5-10% 100
10-15% 54
Above 15% 17
200
14%
50%
27%
9%
Under 5%
5-10%
10-15%
Above 15%

10. 3.) Which term period you prefer for
investment in commodities market?
Particular No of customer
Long term 34
Mid Term 59
Short Term 42
Trading 65
200
17%
29%
21%
33%
Long turm
Mid Turm
Short Term
Treding

11. 4.) You prefer to invest in commodities
(futures) that have?
Particular No of customer
High Risk, High Return 73
Medium Risk, Medium
Return
93
low Risk low return 34
200
36%
47%
17%
High Risk,High Return
Mediam Risk,Medium
Return
low Risk low return

12. 5.) How often do you monitor your
investment?
Particular No of customer
Daily 60
Monthly 65
Quarterly 36
Half Yearly 12
Fort-nightly 24
Annually 3
200
30%
32%
18%
6%
12%
2%
Daily
Monthly
Quarterly
Half Yearly
Fort-nigthly
Annually

13. 6.) Do you know investment in commodities
can be classified as an Asset?
Particular No of customer
Yes 137
No 63
200
68%
32%
Yes
No

14. 7.) What percentage of your income do you
invest in commodity trading?
Particular No of customer
Bullions 43
metals 49
Agri 37
Energy 27
Mixed 44
200
21%
24%
19%
14%
22% Bullions
metals
Agri
Energy
Mixed

15. 8.) What is Overall perception about
Commodity market?
Particular No of customer
Positive 132
Negative 68
200
66%
34%
positive
Negative

16. 9.) Rank the investment product on the
basis of your preference of investment?
39
49
52
11
14
6
2
8
12
7
58
37
25
8
22
12
22
10
4 2
22
14
25
63
17 18
13 12
8 8
14
21
10
40
61
15 13 11 11
4
8
12 12 13
8
27
65
15
20 20
7 7
3
10 10
14
25
29
62
33
7 7 6
11
8 7
22
7
29
96
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10
Equity market commodity mutual fund bank deposit insurance Provident fund real estate Postal service chit fund
Rank Particular Avarage
1
Equity
market 3.495
2 commodity 3.555
3 currency 4
4 mutual fund 4.545
5 bank deposit 4.795
6 insurance 5.365
7
Provident
fund 6.385
8 real estate 7.045
9 Postal service 7.495
10 chit fund 7.98

17. 10.)
-1%
7%
5%
22%
66%
safety
1 2
3 4
5
Particular 1 2 3 4 5
Safety 1 14 11 43 131
Capital Growth 5 1 26 89 79
Return 1 3 6 74 116
Liquidity 2 6 28 111 53
Tax 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

18. Age:
Particular No of customer
below 20 17
Between 20-30 107
Between 30-40 72
above 40 4
200
8%
54%
36%
2%
below 20
Between 20-30
Between 30-40
above 40

19. Gender:
Particular No of customer
Male 172
Female
28
200
86%
14%
male
female

20. Qualification:
Particular No of customer
Graduate 118
under graduate 18
Post Graduate 64
200
59%
9%
32%
Graduate
under
graduate
Post Graduate

21. Occupation:
Particular
No of
customer
Salaried 97
Professional 28
Business 31
Student 44
200
48%
14%
16%
22%
Salaried
Professional
Business
student

22. Annual income:
Particular No of customer
below 200000 61
200000-400000 83
400000-600000 46
above 600000 10
200 30%
42%
23%
5%
below 200000
200000-400000
400000-600000
above 600000

23. 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.

24. 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

25. CONCLUSION
Finally, 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.

26. Bibliography and Reference
 www.m.moneycontrol.com
 https://www.arihantitrade.com
 http://www.ncdex.com
 http://www.mcxindia.com

27. Thank you