Angel Project Report

A PRODUCT PROJECT REPORT ON

RESEARCH FOR LITERACY ABOUT

COMMODITIES AND TRAND OF COMMODITIES IN THE PEOPLE OF

RAJKOT CITY

SUBMITTED BY

URMIL PAREKH

(MBA PROGRAMME 2006-2008)

PROJECT DONE AT

ANGEL BROKING

RECE COURSE RING ROAD

RAJKOT

SUBMITTED TO

T. N .RAO COLLEGE OF MANAGEMENT STUDIES,

B/H COMPUTER CENTER

SAURASHTRA UNI. CAMPUS

RAJKOT.

ACKNOLEDGEMENT

In our 2nd SEM of MBA we have subject MARKETING MANAGEMENT.

In this subject I have to prepare project report on commodity.

The preparation of this project has in a type practical knowledge which is must in installing our own unit. Project report has to be preparing on literacy about commodities and trend of commodities in the people of Rajkot city.

I know this is not possible without a person who guide each an every time at the time of preparing project, and she is Prof.Niharika Bajeja faculty of TNRCMS. I would like to extend our sincere thanks to our project mentor Mr. sameer Juneja sales development Manager, Angel Broking Ltd, Rajkot for guide us. He provides nice support and I never felt unfamiliar with us. We also express our thanks staff member of Rajkot branch.

URMIL PAREKH

Date: 8 Feb., 2007

Place: Rajkot

index

PAGE NO.

1) EXECUTIVE SUMMERY 4

2) INDUSTRY PROFILE

5

3) COMMPANY PROFILE 7

4) RESEARCH PROBLEM

23

5) RESEARCH ANALYESIS 28

6) OBSERVATION

37

7) FINDING OUT 38

8) SUGGATION

38

9) CONCLUSION

39

10) APPENDIX

QUESRIONNAIRE

40

BIBLOGRAPHY 42

EXECUTIVE SUMMERY

As a management students, we are very well know that practical Knowledge plays an important role and it is much important than theoretical syllabus. So for this purpose our college is making the programme for us so that I can get project at industrial unit.

Stock Broking Company is growing sector in India.Angel Broking which is running at last 20 years in this field. Angle Broking is pioneer in Online trading facility in this industry. We have undertake project of Organizational Study of Angel Broking at Rajkot

During the Training period I have been aware about company and its Marketing Department of Stock Market.

I have tried our level best to prepare this report including all the points. I am sure you will acknowledge our report.

Industry profile

Organized futures market evolved in India by the setting up of "Bombay Cotton Trade Association Ltd." in 1875.In 1893, following widespread discontentamongst leading cotton mill owners and merchantsoverthefunctioning of the Bombay Cotton Trade Association, a separate association by the name "Bombay Cotton Exchange Ltd." was constituted. Futures trading in oilseeds was organized in India for the first time with the setting up of Gujarati Vyapari Mandali in 1900, which carried on futures trading in groundnut, castor seed and cotton. Before the Second World War broke out in 1939 severalfutures markets in oilseeds werefunctioning in Gujarat and Punjab.

There were booming activities in this market and at one time as many as 110 exchanges were conducting forward trade in various commodities in the country. The securities market was a poor cousin of this market as there were not many papers to be traded at that time.

The era of widespread shortages in many essential commodities resulting in inflationary pressures and the tilt towards socialist policy, in which the role of market forces for resource allocation got diminished, saw the decline of this market since the mid-1960s. This coupled with the regulatory constraints in 1960s, resulted in virtual dismantling of the commodities future markets. It is only in the last decade that commodity future exchanges have been actively encouraged. However, the markets have been thin with poor liquidity and have not grown to any significant level.

A three-pronged approach has been adopted to revive and revitalize the market. Firstly, on policy front many legal and administrative hurdles in the functioning of the market have been removed. Forward trading was permitted in cotton and jute goods in 1998, followed by some oilseeds and their derivatives, such as groundnut, mustard seed, sesame, cottonseed etc. in 1999. A statement in the first ever National Agriculture Policy, issued in July, 2000 by the government that futures trading will be encouraged in

increasing number of agricultural commodities was indicative of welcome change in the government policy towards forward trading.

Secondly, strengthening of infrastructure and institutional capabilities of the regulator and the existing exchanges received priority. Thirdly, as the existing exchanges are slow to adopt reforms due to legacy or lack of resources, new promoters with resources and professional approach were being attracted with a clear mandate to set up dematerialized, technology driven exchanges with nationwide reach and adopting best international practices.

The year 2003 marked the real turning point in the policy framework for commodity market when the government issued notifications for withdrawing all prohibitions and opening up forward trading in all the commodities. This period also witnessed other reforms, such as, amendments to the Essential Commodities Act, Securities (Contract) Rules, which have reduced bottlenecks in the development and growth of commodity markets. Of the country's total GDP, commodities related (and dependent) industries constitute about roughly 50-60 %, which itself cannot be ignored.

Most of the existing Indian commodity exchanges are single commodity platforms; are regional in nature, run mainly by entities which trade on them resulting in substantial conflict of interests, opaque in their functioning and have not used technology to scale up their operations and reach to bring down their costs. But with the strong emergence of: National Multi-commodity Exchange Ltd., Ahmedabad (NMCE), Multi Commodity Exchange Ltd., Mumbai (MCX), National Commodities and Derivatives Exchange, Mumbai (NCDEX), and National Board of Trade, Indore (NBOT), all these shortcomings will be addressed rapidly. These exchanges are expected to be role model to other exchanges and are likely to compete for trade not only among themselves but also with the existing exchanges.

The current mindset of the people in India is that the Commodity exchanges are speculative (due to non delivery) and are not meant for actual users. One major reason being that the awareness is lacking amongst actual users. In India, Interest rate risks, exchange rate risks are actively managed, but the same does not hold true for the commodity risks..Company profile

The Angel Group has emerged as one of the top 5 retail stock broking houses in India, having memberships in BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is also registered as a depository participant with CDSL.

The group is promoted by Mr. Dinesh Thakkar, who started this enterprise as a small sub-broker in 1987 with staff strength of 3 personnel. As on date, the group is managed by a team of 150 professionals & 700 support staff and a nation wide network comprising 40 branches, over 2000+ sub brokers and business associates and 6000 terminals which cater to the requirements of more than 1 lacs retail clients.

Angel Broking Limited is one of the leading and professionally managed stock broking firm involved in quality services and research. Angel Broking Limited is a corporate member of The Stock Exchange, Mumbai.

The membership of the company with The Stock Exchange, Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into a corporate membership in the name of Angel Broking Limited.

Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr. Mukesh Gandhi, a fifteen years veteran in the market.

The group is well supported by a professional and qualified research team and efficient operations and back office team, which comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art research department.

Angel Broking Limited is primarily into retail stock broking, with a customer base of retail investors, which has been increasing at a compounded growth rate of 100% every year. The company has huge network sub-brokers in Mumbai and other places outside Mumbai, registered with SEBI, who act as channel partners for the company. The company presently has total staff strength of around 1200 employees who are spread accordingly across the head office and all the branches.

Angel Commodities Broking (P) Ltd. Promoted by Angel Group, started its operations in July 2004. It has membership in Indias two premier commodities exchanges i.e. National Commodities & Derivative Exchange and Multi Commodities Exchange. At present the commodities broking services are available at all existing branches and selected franchisees.

As of now Angel broking Ltd. is present in the country through its 12 Regional offices and 45 Branch offices. The list of offices is given below.

Regional Offices

(1) Andheri(E)

(2) South Mumbai(3) Ahmedabad(4) Bangalore(5) Chennai

(6) Hyderabad(7) Indore(8) Kolkata(9) New Delhi(10) Pune(11) Rajkot(12) SuratBranch Offices

(1) Andheri(W)(2) Bandra(W) 2 Offices(3) Borivali(W) 2 Offices(4) Chembur(5) Ghatkopar(E)(6) Goregaon(W)(7) Kalbadevi(8) Lokhandwala(9) Malad(W)(10) Malad(E)(11) Mulund(W)(12) Santacruz(W)(13) Thane(W)(14) Vile Parle(W)(15) Ahmedabad 5 Offices(16) Anand

(17) Ankaleshwar(18) Baroda(19) Bhavnagar(20) Gandhinagar

(21) Gondal(22) Indore(23) Jalgaon(24) Jaipur(25) Junagadh(26) Jodhpur(27) Nasik(28) Nadiad(29) New Delhi 3 Offices(30) Rajkot - 4 Offices

(31) Surat

(32) Valsad

(33) Vapi

(34) VishakhapatnamANGELS VISION

TO PROVIDE BEST VALUE FOR MONEY TO INVESTORS THROUGH INNOVATIVE PRODUCTS, TRADING / INVESTMENT STRATEGIES, STATE OF THE ART TECHNOLOGY AND PPERSONALISED SERVICES

Angels business philosophy

Ethical Practices & Transparency In All Our Dealing

Customer Interest Above Our Own

Always Deliver What We Promise

Effective Cost Management

ACHIEVEMENT

Angel Broking Ltd has been awardedthe coveted

Major Volume Driver trophy

for the year 2004-2005

by the CEO & MD

of BSE Mr. Rajnikant Patel

Membership of Angel

Angel Broking Ltd. is a member of following Indian Exchanges.

National Stock Exchange of India Ltd.

Bombay Stock Exchange

National commodity And Derivatives Exchange

Multi-commodity Exchange

ANGEL DP SERVICESAngel Broking Ltd. is a DP service provider through CDSL (Central Depository Services India Ltd.). It offers depository services to create a seamless transaction platform to execute trades through Angel Group of Companies and settle these transactions through Angel Depository Services.

ADVANTAGES OF ONLINE TRADINNG WITH ANGEL

Angel provides following valuable advantages to its online trading customers.

Multiple exchanges on a single screen BSE, NSE, NSE - F&O, MCX and NCDEX

Hot keys similar to brokers terminal

Streaming quotes

In-depth research and technical charts

Intra-day calls

24X7 back-office

Auto pay-in and pay-out of shares

Instant transfer of funds

Highly secure and confidential

PRODUCTS OFFERED BY ANGEL

Angels main products are shown by the graph here:

Off-Line

The Off-Line account is trading account through which one can buy and sell through his/her telephone or by personal visit at Angel shop.

This facility is for those who are not comfortable with computer and want to trade

On-Line

The Online trading facilities provided by Angel is basically divided into three types, viz. Angel-DIET, Angel Anywhere and Angel inet.net.

Angel-DIET:- This is an Application based software which is ideal for traders. It s features includes user friendliness, simple navigation, robust & speedier execution of trade. It can deal with BSE, NSE, F&O, MCX and NCDEX. Angel Anywhere:- This is also an Application based software which is ideal for traders. Its technical tools and intra-day/historical charts with various indicators are its main features. It can deal with BSE, NSE - Cash & Derivatives both.

Angel-net.net:- This is a browser based software which is ideal for investors. No installation is required and thats why it provides the advantage of mobility. Through this software trading is as simple as internet surfing. It can deal with BSE, NSE, F&O, MCX and NCDEX.

Portfolio Management Services

Angel model portfolio was first launched in the year 2002. since then 5 model portfolio have been launched. The model portfolio has consistently outperformed the SENSEX by 80% each time. Portfolio construction & advice is based on the principle of value-investing. Minimum portfolio size managed by Angel is Rs. 5 lakhs for residents and Rs. 10 lakhs for NRIs, and time horizon for the portfolio ranges from 12 months to 18 months.

Note: The group has recently started dealing in IPOs and Mutual Funds.

RESEARCH SERVICES OFFERED BY ANGELThe main services provided by Angel can be classified in 4 categories which are described below:

Daily Services:

Market Outlook at 9.30 am

Technical Report at 6.00 pm

Derivative Analysis Report

Fundamental Services:

Saturday Weekly Report

The Industrial Watch

Stock Analysis

Flash News

Technical Services:

Intraday Calls

Posting Trading Calls

Derivative Strategies

Commodities Services:

Agro Tech Speak

Call evaluation

Commodities Tech Speak

SWOT ANALYSIS

During my training at Angel Broking Limited, I came to know the strengths, weaknesses, opportunities and threats for the company. It will be very useful for the company to analyze them and for that purpose the SWOT analysis of the company is presented here.

STRENGTHS

Well maintained infrastructure

Dedicated, intelligent and loyal staff

Competitive brokerage

The best investment advice through dedicated research and reports.

Wide product range to anable the clients to choose the best alternative

One of the best DPs in India

A positive image in existing clients

WEAKNESSES

Time consuming process for account opening, resolving the problems of the customers, etc.

Company is present in only one business, i.e. Stock Broking, so there is no scope for cross-selling

OPPORTUNITIES

Slope of stock market towards delivery based transactions

Open interest of the people to enter in stock market for investing

Attract the customer who are dissatisfied with other brokers

An indirect opportunity generated by the stock market due to its current situation

Online trading a/c market has vast potential

Derivatives and Commodities markets are growing so, there is enormous potential for these markets

THREATS

Increasing competition from existing as well as new players

A threat of loosing clients for any kind of weakness of the company

Indirect threat from instable stock market, i.e. low/no profit of Angels clients would lead them to go for other broker

New multinational and national players are coming with competitive products

ABOUT COMMODITIES

A Commodity may be defined as an article, a product or material that is bought and sold. It can be classified as every kind moveable property, except actionable claims, money and securities.

Commodity futures trading perform two important function of price discovery and risk management. It is useful to all segments of the economy.

Characteristics of futures trading

A "Futures Contract"is a highly standardized contract with certain distinct features. Some of theimportant features are as under:

Futures trading is necessarily organized under the auspices of a market association so that such trading is confined to or conducted through members of the association in accordance with the procedure laid down in the Rules& Bye-laws of the association.

It is invariably entered into for a standard variety known as the "basis variety" with permission to deliver other identified varieties known as "tenderable varieties".

The units of price quotation and tradingare fixed in these contracts, parties to the contracts not being capable of altering these units.

The delivery periods are specified.

The seller in a futures market has the choice to decide whether to deliver goods against outstanding sale contracts. In case he decides to deliver goods, he can do so not only at the location of the Association through which trading is organized but also at a number of other pre-specified delivery centers.

In futures market actual delivery of goods takes place only in a very few cases. Transactions are mostly squared up before the due date of the contract and contracts are settled by payment of differences without any physical delivery of goods taking place.

Economic Benefits of the Futures Trading of Commodities

Futures contracts perform two important functions of price discovery and price risk management with reference to the given commodity. It is useful to all segments of economy. It is useful to producer because he can get an idea of the price likely to prevail at a future point of time and therefore can decide between various competing commodities, the best that suits him. It enables the consumerget an idea of the price at which the commodity would be available at a future point of time. He can do proper costing and also cover his purchases by making forward contracts.

The futures trading is very useful to the exporters as it provides an advance indication of the price likely to prevail and thereby help the exporter in quoting a realistic price and thereby secure export contract in a competitive market. Having entered into an export contract, it enables him to hedge his risk by operating in futures market. Other benefits of futures trading are:

Price stabilization-in times of violent price fluctuations - this mechanism dampens the peaks and lifts up the valleys i.e. the amplititude of price variation is reduced. Leads to integrated price structure throughout the country. Facilitates lengthy and complex, production and manufacturing activities. Helps balance in supply and demand position throughout the year. Encourages competition and acts as a price barometer to farmers and other trade functionaries.important FACTORS COMMODITIES FOR FUTURE TRADING

Following are some of the key factors, which decide the suitability of the commodities for future trading: -

The commodity should be competitive, i.e., there should be large demand for and supply of the commodity - no individual or group of persons acting in concert should be in a position to influence the demand or supply, and consequently the price substantially.

There should be fluctuations in price.

The market for the commodity should be free from substantial government control.

The commodity should have long shelf life and be capable of standardization and gradation.

items traded in the Multi Commodity Exchange

Bullion: Gold,

HYPERLINK "http://mcxindia.com/gold_m.aspx" Gold M, Gold HNI,

HYPERLINK "http://mcxindia.com/silver.aspx" Silver,

HYPERLINK "http://mcxindia.com/silver_m.aspx" Silver M, Silver HNIOil & Oil Seeds: Castor Seeds,

HYPERLINK "http://mcxindia.com/soy_seed.aspx" Soy Seeds,

HYPERLINK "http://mcxindia.com/castor_oil.aspx" Castor Oil,

HYPERLINK "http://mcxindia.com/re_soy_oil.aspx" Refined Soy Oil, Soymeal, RBD Palmolein,

HYPERLINK "http://mcxindia.com/palm_oil.aspx" Crude Palm Oil,

HYPERLINK "http://mcxindia.com/groundnut_oil.aspx" Groundnut Oil, Mustard Seed,

HYPERLINK "http://mcxindia.com/mustard_seed_oil.aspx" Mustard Seed Oil,

HYPERLINK "http://mcxindia.com/cottonseed_oilcake.aspx" Cottonseed Oilcake,

HYPERLINK "http://mcxindia.com/cottonseed.aspx" CottonseedSpices: Pepper, Red Chilli,

HYPERLINK "http://mcxindia.com/jeera.aspx" Jeera,

HYPERLINK "http://mcxindia.com/Turmeric.aspx" TurmericMetal: Steel Long,

HYPERLINK "http://mcxindia.com/steel_flat.aspx" Steel Flat,

HYPERLINK "http://mcxindia.com/copper_res.aspx" Copper,

HYPERLINK "http://mcxindia.com/nickel_res.aspx" Nickel,

HYPERLINK "http://mcxindia.com/tin_res.aspx" TinFibre: Kapas,

HYPERLINK "http://mcxindia.com/long_staple_cotton.aspx" Long Staple Cotton,

HYPERLINK "http://mcxindia.com/medium_staple_cotton.aspx" Medium Staple CottonPulses: Chana,

HYPERLINK "http://mcxindia.com/urad_res.aspx" Urad,

HYPERLINK "http://mcxindia.com/yellow_peas_res.aspx" Yellow Peas,

HYPERLINK "http://mcxindia.com/tur.aspx" TurCereals: Rice,

HYPERLINK "http://mcxindia.com/bas_rice.aspx" Basmati Rice,

HYPERLINK "http://mcxindia.com/wheat.aspx" Wheat, Maize, Sarbati RiceEnergy: Crude Oil Others: Rubber,

HYPERLINK "http://mcxindia.com/guar_seed_res.aspx" Guar Seed, Gur, Guargum Bandhani, Guargum, Cashew Kernel,

HYPERLINK "http://mcxindia.com/Guarseed_Bandhani.aspx" Guarseed BandhaniNeed For FuturesTrading In Commodities

Commodity Futures, which forms an essential component of Commodity Exchange, can be broadly classified into precious metals, agriculture, energy and other metals. Current futures volumes are miniscule compared to underlying spot market volumes and thus have a tremendous potential in the near future.

Futures trading in commodities results in transparent and fair price discovery on account of large-scale participations of entities associated with different value chains. It reflects views and expectations of a wider section of people related to a particular commodity. It also provides effective platform for price risk management for all segments of players ranging from producers, traders and processors to exporters/importers and end-users of a commodity.

It also helps in improving the cropping pattern for the farmers, thus minimizing the losses to the farmers. It acts as a smart investment choice by providing hedging, trading and arbitrage opportunities to market players. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.

Raw materials form the most key element of most of the industries. The significance of raw materials can further be strengthened by the fact that the "increase in raw material cost means reduction in share prices". In other words "Share prices mimic the commodity price movements".

Industry in India today runs the raw material price risk; hence going forward the industry can hedge this risk by trading in the commodities market.

Regulatory Body

The Forward Markets Commission (FMC) is the regulatory body for commodity futures/forward trade in India. The commission was set up under the Forward Contracts (Regulation) Act of 1952. It is responsible for regulating and promoting futures/forward trade in commodities. The FMC is headquartered in Mumbai while its regional office is located in Kolkata. Curbing the illegal activities of the diehard traders who continued to trade illegally is the major role of the Forward Markets Commission.

Why Commodities Market?

India has very large agriculture production in number of agri-commodities, which needs use of futures and derivatives as price-risk management system.

Fundamentally price you pay for goods and services depend greatly on how well business handle risk. By using effectively futures and derivatives, businesses can minimize risks, thus lowering cost of doing business.

Commodity players use it as a hedge mechanism as well as a means of making money. For e.g. in the bullion markets, players hedge their risks by using futures Euro-Dollar fluctuations and the international prices affecting it.

For an agricultural country like India, with plethora of mandis, trading in over 100 crops, the issues in price dissemination, standards, certification and warehousing are bound to occur. Commodity Market will serve as a suitable alternative to tackle all these problems efficiently.

Problems faced by Commodities Markets in India

Institutional issues have resulted in very few deliveries so far. Currently, there are a lot of hassles such as Octroi duty, logistics. If there is a broker in Mumbai and a broker in Kolkata, transportation costs, Octroi duty, logistical problems prevent trading to take place. Exchanges are used only to hedge price risk on spot transactions carried out in the local markets. Also multiple restrictions exist on inter-state movement and warehousing of commodities.

Risks associated with Commodities Markets

No risk can be eliminated, but the same can be transferred to someone who can handle it better or to someone who has the appetite for risk. Commodity enterprises primarily face the following classes of risks, namely: the price risk, the quantity risk, the yield/output risk and the political risk.

Talking about the nationwide commodity exchanges, the risk of the counter party (trading member, client, vendors etc) not fulfilling his obligations on due date or at any time thereafter is the most common risk.

Future Prospects

With the gradual withdrawal of the government from various sectors in the post-liberalization era, the need has been felt that various operators in the commodities market be provided with a mechanism to hedge and transfer their risks. India's obligation under WTO to open agriculture sector to world trade would require futures trade in a wide variety of primary commodities and their products to enable diverse market functionaries to cope with the price volatility prevailing in the world markets. Government subsidy may go down as a result of WTO. The MSP programme will not be sustainable in such a scenario. The farmer will have to look at ways of being in a position to trade on commodity exchanges in future. Also, corporates will feel the pressure to hedge their price risk once the frontiers open up for free trade.Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities are the best option.

Following are some of the applications, which can utilize the power of the commodity markets and create a win-win situation for all the involved parties: -

Regulatory Approval / Permission to FII's For Trading In The Commodity Markets

FII's are currently not allowed nor disallowed under any law. As, they have added depth to the equity markets; they will add depth to the commodities markets, since they globally know the commodities.

Online Commodity Trading

Online commodity trading offers a way for an open, many-to-many system, where every user has equal access to price quotes and trading functionality. It provides a level playing field for all, without favoritism or control by a chosen few, where any user can view all quotes posted by other users in real time, act or trade on quotes posted by others, post their own prices and quantities for others to trade

The Online commodity trading site usually lists a large number of unique products covering a variety of commodities, structures, and settlement terms ranging from Oil, Natural Gas, Electric Power, Precious Metals, Emissions and Weather. It provides for various media ranging from Physical Delivery and Financial Cash Settlement. There are further derivative options available ranging from Forwards, Swaps, Options, Spreads, Differentials, Complex Derivatives.

Liquidity, or trade activity, is perhaps the best measure of success of an online trading commodity trading system. With most online commodity trading systems, traders can be sure of finding an interesting market development or trading opportunity almost every time they log on.

All quotes posted by users on any online commodity trading systems are live and firm. They can be acted on with full assurance of a completed transaction. The greatest advantage of an online system for trading is that just a click can be used to hit a bid or lift an offer.

The Online trading system operates almost continuously around the clock, 24 hours a day, seven days a week. This allows any user to extend the trading day, and easily pass the trading objectives to others in companies in different time zones.

The online commodity trading system in India is only an emerging segment yet. This is because the Internet boom in Indian is on the rise only now. The Internet charges are becoming minimal and the Internet is soon becoming a way of life in India. It is in this scenario that online trading is becoming more the way of trading in India.

RESEARCH PROBLEM

The main research problem of this project is that to find out literacy of commodities (what people thinking about commodities? how the people involved in commodities?) and also find out commodities during this period

OBJECTIVE OF RESEARCH

The broad objective of this study is to know market mentality of people of Rajkot city about Commodities instruments. The specific purposes of this study are:

To know the scope for the Commodities To know the investment habit of the people of Rajkot city. To know the constraints which are hampering the use of Commodities. To know the purpose of investing in Commodities.

To know the influencing force behind the decision making while trading in Commodities.

To find out the best pattern to educate about Commodities.

To find out the medium which is the best suitable for trading on Commodities.

.

METHODOLOGY

As we all know that there are mainly two sources of data i.e.

Primary SecondaryPrimary Data:

The data, which is collected directly from the respondents, is called primary data.

The normal procedure is to interview some people individually to get a sense of how people feel about the commodities segment.

So far as our research is concerned, primary data is the main source of information. We have collected data through Questionnaire

Secondary Data:

When data are collected and compelled from the published nature or any others primary data is called secondary data.

So far as our study is concerned, we have not collected any information from any sources. So, we have not used secondary data for our study.

SAMPLING PROCESS

It is very true that its very difficult to do the research with the whole universe. As we know that it is not feasible to go for population survey because of the numerous customers and their scattered location. So for this purpose sample size has to be determined well in advance and selection of sample also must be scientific so that it represents the whole universe.

So far as our research is concerned, we have taken sample size of 250 respondents. We have selected Income Earners with savings to invest in Rajkot city.

All the respondents are stratified on the basis of their profession and savings. We have selected the sample as per our convenience.

Sample universeRajkot city

Sampling TechniqueConvenience sampling

Sample size250 respondents

Sampling Unit:Professional

Business Man

Government Employees

Employees working in private firms

SCOPE OF STUDY

The study that is being undertaken will be useful in the following respect.

This will help the company, how to make people aware about commodities by imparting best education.

This will help the company to frame effective Marketing Strategy.

This will also help to select the right media for advertising to create brand awareness as well as to give knowledge of the products.

This will help the company to reduce the obstacles which come in the way for the development of commodities segment.

LIMITATION OF THE STUDY

The limitations of this study are as follows:Personal Bias:

People may have personal bias towards particular investment option so they may not give correct information and due to which conclusion may be derived.

Time Limit:

The time duration of the research is short thats why the information is not covered fully.

Sample Area:

The area was limited to Rajkot city only.

RESERARCH ANALYSIS

GRAPHICAL REPRESENTATION AND INTERPRETATION

1. Name

2. Age

Age21 3536 5051 65Above 66

13299181

3. Contact No

4..Educational Qualification

QualificationPost GraduateGraduateUnder GraduateOthers

50163307

5.Occupation

ProfessionalsBusiness ManEmployees working in Pvt. FirmGovt. EmployeesOthers

7183552912

6.Investment Pattern of The people

InstrumentsNos.Percentage

Bank FD12951.6

Postal Schemes6425.6

Govt. - Secs3012

Mutual Funds12650.4

Insurance16465.6

Bonds/Debentures135.2

Shares/Equity22389.2

Real Estate5120.4

Commodity3915.6

7.Instruments in which people are tradingInstrumentsNos.Percentage (%)

Equity17168.4

F&O4919.6

Commodities3012

8.Factors that are to be considered by people while jumping in to Commodity segment.FactorsPercentage (%)Rank

Risk Reduction24.772

Speculation18.483

Investment26.631

Arbitrage15.684

To Increase The Leverage14.445

9.Factors which people takes into consideration while taking the decision to Commodities.

FactorPercentage (%)Rank

Independently15.861

Advice of Friends/Colleagues11.334

Broker/Agents advice122

Advice of CA/Tax consultants8.069

News Channel10.547

Well-known Stock Broking Houses11.853

News Papers11.125

Business Magazines10.936

Internet8.3128

10.Tools preferred by the people while learning Commodities.ToolsNos.Percentage (%)

Classroom Teaching9939.6

Internet8534

Literature10040

Documentaries104

Self-Experience13855.2

Seminars7128.4

14. Most preferred medium for trading in Derivatives & Commodities

MediumPercentage (%)Rank

Stock Broking Cos. (Branded)31.511

Brokers27.82

Franchisees154

Online25.73

12. commodities are traded on which exchange?

ExchangePercentager(%)Rank

NSE 22.763

MCX45.351

NCDX29.692

BSE2.204

13.Most preferred Broking companies of the city

Broking CompanyPercentage (%)Rank

Angel15.071

India Bulls7.535

ICICIdirect7.674

Kotak Street 5.757

Sharekhan9.043

5 Paisa4.938

HDFC Securities4.119

Motilal Oswal6.996

Marwadi13.292

Others25.62-

OBSERVATION

By this project we have observe that the scope of the commodities (bullion) in Sony bazaar is increasing in future .agriculture product demand are increasing day by day. In specially in the marketing yard number of people are interested in the commodities & also scope of commodities in the danapith will incrising in future .

During this project we also observe that they are interested in commodities but , they have no knowledge about commodities so it is required to provide them knowledge.

FINDING OUT

In this project we have just find out literacy of commodities and trend of commodities 12 % .this percentage we have finding out basis of fill up 250 questionnaire and 2 KNOP one is at bahumadi bhavan & 2nd is in Sony bazaar.by this2 KNOP & questionnaire and our personal contact we have find out above percentage.

Suggestion

Though Angel has better position as far as its mind share is concerned, it is facing steep competition from other industry majors. So, Angel is required to increase its marketing activity for retaining its top position. As there is a vast potential for Commodities market Angel can take following steps to tap this potential. It can impart education by classroom teaching and literature as lack of knowledge is one of the constraint, faced by people. It can show the benefits of Commodities to existing customers turn them towards these instruments. Special services like online tutorial modules and practical training would also be helpful in this regards.Conclusion

On the basis of this study I could reach to the following conclusions.

More no. of people, who are already investing in Equity market are keen on investing in Commodities.

Lack of Knowledge and Lack of Guidance are considered major constraints along with Risk Taking Ability and Fund Facility constraints, which are decreasing the use of Commodities.

People in Rajkot city wants to invest in Commodities for reducing risk and they consider them as investment tools

People generally want to trade independently. But brokers advice and tips from the well known stock broking houses are the major factors which have a great deal of bearing on the trading decisions and hence can influence the buying behavior of people.

Most of the people want to learn about Commodities by Self Experience. However, Literature and Classroom teaching can be considered as good methods to impart education to them.

People consider branded stock broking companies as the best medium for trading in Commodities.

APPENDIX

1) QUESTIONNAIRE:-

MARKETING REASERCH FOR LITERACY ABOUT COMMODITIES AND TREND

OF COMMODOTIES IN THE PEOPLE OF RAJKOT CITYName :-_____________________________________________________

Address:-____________________________________________________

Contact no:-__________________________________________________

1) Gender: - Male_______ Female_______

2) Age : - 21-35_____ 36-50______ 51-65_____ above 65_____

3) Educational:-_________________________________

4) Occupation: - professional _______ Businessmen_______

Employee working _______ Govt. employ_______

In Pvt.firms

Other _______

5) In below option, which are you already investing in today?

Bank FD _____ Postal scheme _____ G-secs _____

Mutual fund _____ Insurance _____ Bonds _____

Share Equity______ Commodity _____ Real assets_____

6) Which of this you would like to be trading?

Commodity________ F&O________ Equity_______

7) If you are trading in commodity which factor will you give importance?

Risk Reduction ________ Investment ________

Speculation ________ Arbitrage ________

Incising leverage ________

8) How do you take decision if you want to trade in commodities?

Independently ________ Broker _______

News Channels _______ Internet ________

News Paper ________ Business Magazines_______

Advice of friends________ advice of tax concul.______

9) If you want learn about commodities, how will you learn?

Self experience ________ Internet ________

Literature ________ Seminars ________

Class room _________ Documentaries ________

10) Which medium is most reliable for trading in commodities?

Stock broking _______ Broker ________

Online _______ Franchisees________

11) Commodities are traded on which exchange?

NSE ________ MCX ________

MCDX ________ BSE ________

12) Name any three broking co. that deal in commodities?

1.___________ 2.___________ 3.___________

THANK YOU

BIBLOGRAPHY

BOOKS

Bharati V. Pathak , Indian Financial System , Pearson Education Pte. Ltd.

WEBSITES

www.angeltrade.com www.bseindia.com www.nseindia.com www.mcxindia.com www.ncdex.com www.investopedia.com www.sharekhan.com www.moneycontrol.com

Offline

ANGEL

PMS

Online

Angel Anywhere

Angel-inet.net

Angel-DIET

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