Commodity Market A Study on Consumers

Perception



Crecer Financial Service Private Limited




Faculty Guide: Corporate Guide:
Dr .S.V. Ramana Rao Rajkumar A
Director Academic Sales & Marketing Manager
Siva Sivani Institute of Management Crecer Financial Services



Submitted By:
Faculty Signature Arnab Bagchi
Roll No: B702

On The Job Training: My role was as management intern my main task was marketing and
sales and also suggest various strategies so that to increase database of the company.
Company Assigned activities/objective(s): Company assigned me task for sales target of
around 2lakh.
Plan of action and Execution / Activities performed: We have to meet customer and
interact with them have to say about our product and what are the benefit they are going to
get from our product that is fix income plan. We also conducted various promotional activity
to increase sales and database. As our company is a start-up we have to make various
marketing strategy as well as do online promotion.
Accomplishments/Achievement of Objectives: I am very pleased that I able to do sales of
about rupees 50000 and generate lead of rupees 60000 and as our promotional activity I able
to conduct a tie up between Volkswagen and Yamaha.
Learning: During my 60 days I learn how to interact with customer as well how to work in a
team.
1. Introduction:
Commodities are traded on regulated commodities exchanges, in which they are bought and
sold in standardized contracts. Commodity markets deal in raw materials that are amenable to
grading and that can be stored for considerable periods without deterioration. Originally, the
commodity markets started off as a way for farmers to sell their goods at a guaranteed price in
the future. Because farmers had no way of knowing whether the harvest would turn out good
or bad, it provided a way for them to lock in some profits before going to market. The
commodity market also provided a way for buyers to get a price they thought was fair.
Commodity is an important constituent of the financial market of any country. It is the market
where a wide range of products are traded. It is important to develop a vibrant, active and liquid
commodity market. This would help investors hedge their commodity risk, take speculative
positions in commodities and exploit arbitrage opportunities in the market.

2. Industry Profile:

Right from the beginning the stock broking industry has undergone a drastic change. Gone are
the days when the individuals were acting as a stock broker & just were serving a limited
region. The industry structure has changed so much as the corporate giants entered in the stock
broking industry. The Indian broking industry is one of the oldest trading industries that have
been around even before the establishment of the BSE in 1875. Despite passing through a
number of changes in the post liberalizations period, the industry has found its way towards
sustainable growth. Stocks and bonds are both securities. Investors buy and sell individual
securities through brokers, also called securities dealers. There is an unimaginably large
amount of money chasing investments these days, which is part of the reason that the stock
market rose so steeply during the 1990s. Brokerages are primary means by which all these
investments are made. A sub broker is a person who is registered with SEBI as such and is
affiliated to a member of a recognized stock exchange. A sub-broker is not a Trading Member
of a Stock Exchange but who acts on behalf of a Trading Member as an agent or otherwise for
assisting investors in dealing in securities through such Trading Members.

Corporate History:
CRECER FINANCIAL SERVICES PVT LTD, was started in 2008, as a proprietorship
business dealing in various products like insurance, acting as DSA and trading in stock
market in the name of Khans Money. Later on the firm became a pvt firm in 2012,
selling its various financial products in the market as well as do trading.
Crecer Finance is a growing financial services company in India, promoted by first
generation promoters. This is diversified in business model that includes wealth
management, financial product distribution, asset management and capital market
advisory firm.
The MD of the Firm is Mrs. Zohra Shaikh and CEO as Mr. Imran Khan, both working
as traders in the stock market in BSE & NSE markets. The amenities of the firm are
qualified and licensed by the NSE market and have more than 6-7 years of trading in
stock market.

Customer: Our target customers are middle income group and high income group people who
have high disposable income and the interest to invest.
Organisational Structure:



3. Review of Literature:
According to Dr. G. Malyadri & B. Sudheer Kumar Department head at Sreenivasa Institute of
Technology and Management Studies (2010) in their studies they mainly concentrate on
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 & than they discuss the main
components of future commodity trading like contract size, what actual margin is and delivery
system etc.
Narender Gupta (2006) Institute for Studies in Industrial Development Indian commodity
market has made enormous progress since 2003 with increased number of modern commodity
exchanges, transparency and trading activity. The volume and value of commodity trade has
shown unpredicted mark. This had happened due to the role played by market forces and the
active encouragement of Government by changing the policy concerning commodity
derivative.

4. Objectives of the Study:
To study the perception of investors in commodities market.
To study about major exchanges trading in Indian commodity market.

5. Methodology:
The present study is conducted to provide information to the company regarding the investor
perception towards commodity market. Data was collected in systematic manner by meeting
the existing investors who come to invest as well as existing investor in different area.


6. Scope of the Study:
This study is limited to only Secunderabad City the study is carried out to know the awareness
level of derivative investors towards Commodity Futures market. This study also helps to know
about trading mechanism of Commodity Market & the future trading level.

7. Limitations:
Since the study is based on the convenient sampling it may not depict the accurate
outcome
Level of accuracy of results of research is restricted to the accuracy level with which
the customers have given answers and the accuracy level of the answer cannot be
predicted
The findings are based solely on the information provided by the respondents and there
is a possibility of biased results.
The study of project is limited to only Secunderabad.

8. Data Analysis:

32% of the respondents prefer to invest in derivative and stocks, 10% of the
respondents in bank deposit, 8% & 7% in life insurance & commodity market, 5% in
mutual fund, 4% in real estate & 2% in bonds.
Most of them think about factor effecting their investment are 45% of return, 39% of
risk, 9% price& 7%demand and supply.
64% of the trader aware about the Commodity Future market and 36% of them are not
aware about Commodity Future.
Who had been invested till know they came to know about it with the help of by agents
the respondents who have invested in commodity market from them 18% of the people
came to know by agents ,9% from the bill boards /advertisement/brochure &12%
people came to know by their friends and colleagues.
10% prefer to trade in agro products, 5% in base metals, 19% in precious metals & 5
% in energy products.
Most of the investors consider 12% of return, 16% of risk, 3% price& 8% of season
while investing in commodities.
After giving the awareness to the trader around 55% are get ready to invest in
commodity market.

9. Findings & Suggestions:
More than 50% of the Traders in are aware about the commodity future market. Hardly
30% traders are invested in the commodity future market.
Most of the investors are not ready to invest in commodity future market they feel it
involve high risk.
Most of the investors are ready to invest in commodity future market if proper
information is provided.
There is need to create awareness about commodity Future Market.
More agents and marketing executives should be appointed to educate the customers
because the customers having many myths in their mind.
And also create the awareness of electronic commodity trading.


10. References & Bibliography
I mainly collect information from different website and article such as:-
www.mcxindia.com
www.commodityindia.com
IRJBM ( www.irjbm.org ) November 2013 - Volume No V.
www.crecerfinance.com