SUMMER INTERNSHIP PROJECT REPORT ON A

STUDY ON PERFORMANCE EVALUATION OF

DIFFERENT TYPES OF COMMEDITIES

SUBMITTED

IN PARTIAL FULFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

2017-2019

SUBMITTED BY

ESHWAR SAI KRISHNA.P

REG.NO:-13002

UNDER THE GUIDANCE OF

Dr.MADANMOHAN (Faculty guide)

And

Mr.N.Shiva kumar
RESEARCH DESIGN

Introduction

Research refers to the search for the knowledge. One can also define research as a scientific,
systematic search for the actual information on a specific topic. In fact, research is an art of scientific
investigation. “A careful investigation or enquiry specially through search for new fact in any branch
of knowledge.”

Here the data collected are analyzed through Beta and Volatility to find out the degree of risk
involved in commodity futures.

Statement of the problem

Commodity Future is a very important instrument in hedging risks, which arises in the spot
market. Speculators and hedgers use commodity utures to reduce the risks.

Commodity Futures have volatility. Because of variability, Commodity futures are not much popular.
Here an attempt is made to know volatility involved in 10 Commodity Futures.

Need of the study

Commodity market is growing and it is becoming more critical. Therefore the research is in on the
commodity futures and analysis of risk and return involved in commodity futures.

Objectives

The objectives of the study are:

 To study the growth of commodity futures trading regarding to Precious Metals and
Other metals.
 To analyses the risk involved in various Precious Metals and Other metals.
  To know the use of strategies available in the commodity market with Precious Metals and
Other metals.
Scope of the study

 One month spot prices for commodity futures like Gold, Silver, Aluminum, and copper etc
are collected for calculation.
 The above mentioned commodity futures are more traded in the market in terms of volume.

Methodology

Methodology states that how the research studies should be undertaken. This includes the design
specifications, sources of data, methods of primary data collection, methods used for collecting
secondary data etc. Mainly secondary data has been used for the study. Secondary data consists of
collecting information from various financial sites. It includes the records and reports of research
experts. For analysis and interpretation statistical tools are used.

In this study Beta are used for calculating Risk and Return of commodity futures.

Sample Design

NCDEX and MCX are the India’s the two major exchanges for commodity trading and as many as
more than 55 commodities are listed.4 commodity futures are taken sample size for the purpose of
the study.

Sources of data

 The required information or data collected from the stock brokers and two major exchanges.
 The spot prices of commodity were collected from for one month ofJanuary from various
websites.
 The secondary data were the basis for the study.
 Tools used for analysis

Beta is used for analysis

Limitations of the study

The following are the limitations of the study.

 Due to non-availability of sufficient time one month data was taken for analysis.
 The data are available in the date of the expiry of the contract.
 Most of the information gathered for the study is from Internet and magazines etc.
that are in the printed form. Hence, the level of accuracy cannot be expressed to be
100 per cent.

COMPANY INFORMATION

Company Description

GOODWILL COMMODITIES founded in 2008, is India’s best commodity

House & the Largest Distribution Network, providing a wide range of financial services &
investment solutions. The Goodwill Commodities Advantage. Large avenues of investment
solutions & financial services under one roof. Personalized solution & attention offered to
each investors. Research support & timely advice by our high-tech research wing. An
extensive network of branch offices. A perfect blend of latest technology & rich experience of
over a decade. Honesty, transparency & fairness imbibed in all our dealings. Providers of
one of the best trading platforms in terms of speed, convenience & risk management to trade
in commodity market.
VISSION

To be seen by the trader and investor communities as a reliable, efficient, trustworthy

partner in their endeavor to prepare for and enjoy a secure, comfortable and prosperous
future at various stages in their lives.

MISSION

To display all the resources, human and technological, at the disposal of our customers and
help them create and preserve wealth through consistently intelligent investment decisions.

TEAM

Goodwill will at times have a full-fledged team of experts and support personnel, dedicated
to meeting customer’s goal and available 24*7 for advice and direction.

Main Activities

Activities auxiliary to financial intermediation, except insurance and pension funding.[This

Group includes activities involved in or closely related to financial inter-mediation other than
insurance and pension funding but not themselves involving financial inter-mediation]

HEAD OFFICE:

Goodwill comtradespvt.ltd.

Goodwill health management pvt.ltd.

New no #9(old no 4/1) 2nd floor,

Masha Allah building,

Bheemasena Garden Street,

Off royapettah high road,

COMMODITY PROFILE

METALS: PLATINUM

Prized for its extreme resistance to corrosion and its ability to catalyze reactions –
such as those vital in the refining of crude oil into gasoline – platinum is essential in a
variety of laboratory and industrial applications. The catalytic converter – a vehicle
emissions control device – is the most widely used application of platinum group
metals (PGM). Jewelry is the second largest sector of PGM demand. Platinum is
also used for biomedical applications, crucibles, dental alloys, electronic devices,
glass,hard,disks,silicones,turbine,blade,watches.

Price Drivers
The majority of annual production occurs in South Africa, and trends and conditions
in this volatile emerging market affect platinum prices. Other price drivers include:

 economic and political circumstances

 natural disasters
 mining strikes
 the health of the auto industry
 technological advancements (for example, electric cars could decrease demand for
catalytic converters)
 substitution of other (less expensive) metal
Contract Specification

Ticker Symbol PL (CME Globex)

Contract Size 50 troy ounces

Contract Months The current month and the next two calendar
months before moving to a quarterly cycle of
January (F), April

Trading Hours CME Globex: Sunday – Friday, 6:00 p.m. –

5:00 p.m. (there’s an hour break from 5:00 to
6:00 p.m. each day)

Last Trading Day The third last business day of the delivery
month

Price Quote U.S. dollars and cents per pound

Tick Size $0.10 per troy ounce ($5 per contract)

Production
South Africa is the world’s largest supplier of platinum, producing 120,000
kilograms annually. It holds the largest known reserves of PGMs and extracts
about 75% of the world’s platinum. Other top producers include Russia – a
distant second with 23,000 kilograms – Zimbabwe, Canada and the U.S.
Stillwater Mining Company is the only producer of PGMs in the U.S.
METALS: Palladium

Palladium is a chemical element with symbol Pd and atomic number 46. It is a rare and lustrous
silvery-white metal discovered in 1803 by William Hyde Wollaston. He named it after the asteroid
Pallas, which was itself named after the epithet of the Greek goddess Athena, acquired by her
when she slew Pallas. Palladium, platinum, rhodium, ruthenium, iridium and osmium form a
group of elements referred to as the platinum group metals (PGMs). These have similar chemical
properties, but palladium has the lowest melting point and is the least dense of them.

Characteristics

Palladium belongs to group 10 in the periodic table, but the configuration in the outermost
electron shells is atypical for group 10 (see also niobium (41), ruthenium (44), and rhodium (45)).
Fewer electron shells are filled than the elements directly preceding it (a phenomenon unique to
palladium). The valence shell has eighteen electrons – ten more than the eight found in the
valence shells of the noble gases from neon onward.

Z Element No. of electrons/shell

28 nickel 2, 8, 16, 2 (or 2, 8, 17, 1)

46 palladium 2, 8, 18, 18

78 platinum 2, 8, 18, 32, 17, 1

110 darmstadtium 2, 8, 18, 32, 32, 16, 2 (predicted)

Palladium is a soft silver-white metal that resembles platinum. It is the least dense and has the
lowest melting point of the platinum group metals. It is soft and ductile when annealed and is
greatly increased in strength and hardness when cold-worked. Palladium dissolves slowly in
concentrated nitric acid, in hot, concentrated sulfuric acid, and when finely ground,
in hydrochloric acid.[4] It dissolves readily at room temperature in aqua regia.
Palladium does not react with oxygen at standard temperatures (and thus does not tarnish in air).
Palladium heated to 800 °C will produce a layer of palladium(II) oxide (PdO). It tarnishes lightly in
a moist atmosphere containing sulfur.

Metals –Lead

Lead is a chemical element with symbol Pb (from the Latin plumbum) and atomic number 82. It
is a heavy metal that is denser than most common materials. Lead is soft and malleable, and has
a relatively low melting point. When freshly cut, lead is bluish-white; it tarnishes to a dull gray
color when exposed to air. Lead has the highest atomic number of any stable element and three
of its isotopes each conclude a major decay chain of heavier elements.

Lead is a relatively unreactive post-transition metal. Its weak metallic character is illustrated by
its amphoteric nature; lead and lead oxides react with acids and bases, and it tends to
form covalent bonds. Compounds of lead are usually found in the +2 oxidation state rather than
the +4 state common with lighter members of the carbon group. Exceptions are mostly limited
to organolead compounds. Like the lighter members of the group, lead tends to bond with itself; it
can form chains, rings and polyhedral structures

Metal-Zinc
Zinc is a chemical element with symbol Zn and atomic number 30. It is the first element in group
12 of the periodic table. In some respects zinc is chemically similar to magnesium: both elements
exhibit only one normal oxidation state (+2), and the Zn2+ and Mg2+ions are of similar size. Zinc is
the 24th most abundant element in Earth's crust and has five stable isotopes. The most common
zinc ore is sphalerite (zinc blende), a zinc sulfide mineral. The largest workable lodes are in
Australia, Asia, and the United States. Zinc is refined by froth flotation of the ore, roasting, and
final extraction using electricity (electrowinning).

Brass, an alloy of copper and zinc in various proportions, was used as early as the third
millennium BC in the Aegean, Iraq, the United Arab
Emirates, Kalmykia, Turkmenistan and Georgia, and the second millennium BC in West
India, Uzbekistan, Iran, Syria, Iraq, and Israel[3] (Judea[4]).[5] Zinc metal was not produced on a
large scale until the 12th century in India, though it was known to the ancient Romans and
Greeks.[6] The mines of Rajasthan have given definite evidence of zinc production going back to
the 6th century BC.[7] To date, the oldest evidence of pure zinc comes from Zawar, in Rajasthan,
as early as the 9th century AD when a distillation process was employed to make pure
zinc.[8] Alchemists burned zinc in air to form what they called "philosopher's wool" or "white
snow".