Y










Y

 


    


Y



    
 
Objectives
m To learn about commodity market and
need of it.

m To know about investment pattern,

participation, perception and awareness of
retail investors in commodities through
survey.

 Y



     
Ybout Yngel Broking
ï

To provide best value for money to investors through
innovative products, trading/investments strategies, state of
the art technology and personalized service.
  


 
i Ydvice based broking in equities, commodities, derivatives
i Research & advisory products in
equities/commodities/derivatives
i E-Broking services
i Wealth management services (PMS)
i Depository services
i Value added back office services

 Y



     
Ybout Yngel Broking
ÿ 31 Regional Hubs
ÿ 148 branch offices
ÿ 6000+Employees
ÿ Over 7.4 lakhs Customers
ÿ 6500+RegistareSub-brokeres/Remises/Yuthorized
Persons
ÿ 100+Reserch Team Member
ÿ Highest no of Sub-brokers on NSE & BSE

 Y



     
÷ 

 

 

 
Yny product that can be used for commerce or an article
of commerce which is traded on an authorized commodity
exchange is known as commodity.


   

Commodity market is a place where trading in
commodities takes place. Markets where raw or primary
products are exchanged.

 Y



     
˜ist of Traded Commodity
i Ygricultural Products:- Corn, Oats, Rough Rice, Jeera.
Soybeans, Rapeseed, Soybean Oil, Wheat, Coffee etc
i ˜ivestock and Meat:- ˜ean Hogs, Frozen Pork Bellies,
˜ive Cattle, Feeder Cattle.
i Energy:- WTI Crude Oil, Brent Crude, Ethanol, Natural
Gas, Heating Oil, Gulf Coast Gasoline etc
i Precious Metal:- Gold, Platinum, Palladium, Silver.
i Industrial Metals:- Copper, ˜ead, Zinc, Tin, Yluminum,
Yluminums alloy, Nickel, Recycled steel, Iron etc.

 Y



     
÷ 


 

 
i The history of organized commodity derivatives in India
goes back to the nineteenth century when Cotton
Trade Yssociation started futures trading in 1875
i Cotton, derivatives trading started in oilseed in Bombay
(1900), raw jute and jute goods in Calcutta (1912),
Wheat in Hapur (1913) and Bullion in Bombay (1920).
i The parliament passed the Forward Contracts
(Regulation) Yct, 1952, which regulated contracts in
Commodities all over the India.
i Yfter ˜iberalization and Globalization in 1990, the
Government set up a committee (1993) to examine the
role of futures trading.

 Y



     
Introduction to Commodity
Derivatives
m    
are financial contracts, which
derive their value from an underlying
asset. E.g. When we say an Infosys future,
these will carry a value only because of
the value of Infosys

m    
 

m Financial Derivatives
m Commodity Derivatives

 Y



     
Participants In Commodity
Derivatives
m   
-They face risk associated with the
price of an asset. They use the futures market to
reduce or eliminate this risk.
m Y person keeps a close watch upon the prices
discovered in trading and when the comfortable
price is reflected according to his wants, he sells
futures contracts. In this way he gets an assured
fixed price of his produce.

 Y



     
Continued«

 Y



     
Continued«
m = 
· They are participants who
wish to bet on future movements in the
price of an asset.

m   
· They work at making

profits by taking advantage of discrepancy
between prices of the same product
across different markets.

 Y



     
Commodity Exchanges In India

 Y



     
Commodity Exchanges In India
National ˜evel Multi Commodity Exchanges

1. National Commodity & Derivatives Exchange

(NCDEX)

2. Multi Commodity Exchange (MCX)

3. National Multi Commodities Exchange of India

˜td. (NMCEI˜)

 Y



     
Research Objective
m To know about investment pattern, participation,
perception and awareness of retail investors in
commodities through survey.

m To find out the reasons       

into commodity markets.

m To understand the 
which are affecting to the

commodity markets the most?

m    
are mainly traded by the

people?

 Y



     
Research Methodology
m 



Descriptive Research

m 

÷
 
†uestionnaire

m = 
= 
100 samples

m =  
 
Convenience sampling

m ˜   

 Time constraint
 Cost of the survey
 Bias from the side of interviewee

 Y



     
Data Ynalysis

 Y



     
1. Where are you investing your money?
÷
 
 

§

 
 


 
   
 



 ! 
    "#
!! 
  #
$  %


Y

´ 
 
  !"


 !
!#
$

´% 
  ! 


! 
  &  
  
 $

 Y



     
 2. What are your criteria for investment in share
market?
÷
 
 


  & ' 
( %
  !

 !

! !

 !
)
*
( !

 !
%
$  %
—

Y

´r !
 
  !
!
!! !

!

"
! $' 
& !

 !




!#


 "!








! ! !&! $

 Y



     
 3. Yre you aware about the commodity markets?

 
 
 %
 
—

Y

´!! 
  !&! 






!#
$
´' 


(  )! #!  "

#
 !!
"

 
!

&! 

! $

 Y
 


     
 4. From where you are getting the information
about the commodity markets?
 
 
+   )
+ 

 
' ( , #
 !&-
 %
$  )%


Y

´!&   



!

 !  !

 
 





!#
$
´!
!   

* 
  !
# &  
!  $

 Y



     
 5. Yre you interested into awareness programs
(seminars)?
       

 
 
 #
 #
 
. 

. 

Y

´r !
 
  !
!



&!  ! !
$

 Y



     
 6. Yre you trading into the commodity markets?

 
 
 ##
 /
—

Y

´% 
  !
!






!#
 
!  "!
!#
 !
 "!
!

 ! !&! $

 Y



     
 7. Why are you not trading into the commodity
market?
 
 
* 0-0         



(  * 0-0


(
* 0-0(
0  
-!0, )# * 0-0(
0-!0,

 $ 
0- % 0 
0-0
(0 !0

1  
(0 )

 
  !

 1  
(0,!
,! #

-
0-0 
-
0-0! 0
!0
! 
!0 # -  

0-  
§(0
§(0 )

§(0 
( 0  §(0 
( 0! (

! (
 % 
 )
))    $ 
$   # # 
—


Y

´ 
  !

!  # 
!
$
´+  
  !

! 
!

 "



!
$
 Y



     
 8. In which commodity you will mainly trade?
  
 
 ##

2
&02( 0 
!! &
0 )#
$  


Y

´r !
 
  !
!



 #
  "!) !$
´% 
  !
!
!
!



 &  !"!
  !



 $
´' & 

!

!&! 

!
! 



(  


!
! "!
!



 $

 Y



     
 9. What is your purpose for trading into the
commodity markets?
 
 
 
)
3(
( -
 &  ( 

 !


&  
2,  ( %
$  


Y

´ 
  !,
  
 






!#
$
´  !
#
"! 



$

 Y



     
 10. Which factors are affecting to the commodity
markets the most?
 
 


)%
 3  
( #
   )#
!
4&

 #
  
$  


Y

´ 
  & !&


! !
!!
"





!#
 ,
 
   
! 
!


 

  
 !
! $
´% 
  !"!  !"


 !  
!


! !

$
´   "
-   ! 

!


!$
 Y



     
 11. From which broker you will dealing for a
commodity trading?
 
 
2
( §
( /
5 
!!  

 
-
 #

 § 
6
 
&
5
+7
!!  
$  %

Y

´  !
 & 

Y  "! !






!#
 

Y

´+ 
!  
r !#.! ,
/.!# 0




 Y



     
 12. What are the reasons for dealing with
particular broker?
 
 
°
  


  
 

 

8 9 
 
) )
6    °


 

  

 
* , ( ) 

  






§     

  


 



 
' )#



§

! 




 
$

 § 



 

 
--  # # 
# 

  
 
$  

Y

´  !&
 !
!! #! 

! "

!! ! 1 2

´ 
   !
 
!! #!$$

 Y



     
 13. Do you feel that in last couple of years prices of
general commodities have gone up due to commodity
speculations?

 
 
 
 


Y

´ 
  !"

 ! !



  "  



 
  $

 Y



     
Findings
i Findings of this Project show that only 8% of the people
are investing money in the commodity market at this
stage even though 56% respondents are aware about
the commodity market.
i Basically news channel is the main source for awareness
regarding commodity markets in the respondents.
i The main reason for not trading in the commodity
market is the lack of understanding and other major
reason is that lack of time and interest and also some
bad experience in previous investment.

 Y



     
Continued«
i Out those who invest in the commodity market, more
than half of them invest in the gold, silver and copper.
i When asked to the people regarding the factors
affecting commodity market, 34% respondents reply that
speculation is the Broker where they deal.
i Respondents reply regarding the broker where they
deal show that 32% of them deal through angel broking.
i Most of the people think that speculation is responsible
for increase in the general price levels of the
commodities

 Y



     
Recommendations
ÿ Nearly 50% of the population is unaware about the
commodity markets so it is recommended to
commodity exchanges that they have to take some
serious actions for creating awareness about these
markets to the general public.
ÿ They can create more and more awareness by arranging
seminars targeting general public·s and people who are
more risk takers into the share markets.
ÿ News channel is also one of the better sources for
creating awareness.

 Y



     
Continued«
ÿ In our survey nobody take delivery of the commodities
because they are facing the problem of warehousing so
commodity exchanges have to take some steps for
solving the warehousing problem.
ÿ Only 20% of the peoples are hedgers into these
markets so exchanges can get better turnover by
attracting other people who are dealing such
commodities.
ÿ Very less no of the people are trading into any
agriculture commodities we can say that by creating
more awareness to the farmers commodity exchanges
can get better turnover into agriculture commodities.

 Y



     
Suggestions to Yngel
Commodities
m Yrrange seminars for existing equity clients

m Yggressive marketing into this segment through the

trained executives

m Improve research work

m Start SMS services

m learn certain risk management techniques like arbitrage,

hedging to their clients.

 Y



     
Conclusion
m Ywareness need be increased in the general
public about the commodity market if it is to
grow at a faster rate than prevailing.

m If speculation is curbed then and then only we

can make the general people think positively
about commodity market because normal
perception about commodity market is that it is
´sattaµ market i.e. speculation market.

 Y



     
Thank You

 Y