asasas

I, Kapil Premchand Israni, student of MMS, Batch 2010-2012 of H&GH

Mansukhani Institute of Management, Mumbai specializing in Finance,

hereby declare that I have completed my Final Year Research Project on

“Investors perception regarding Indian Commodity Market”. The

information submitted is true and original to the best of my knowledge.

Date: Kapil Israni

asasasa

D E C L A R A T I O N

asasas

This is to certify that Kapil Premchand Israni, student of MMS, Batch

2010-2012 of H&GH Mansukhani Institute of Management, Mumbai

specializing in Finance, has completed his Final Year Research Project on

“Investors perception regarding Indian Commodity Market”. The

information submitted is true and original to the best of my knowledge.

Date: Prof. Anju Sawlani

asasasa

C E R T I F I C A T E

asasas

It gives me a great pleasure in presenting the Project Report on ‘Investor perception

regarding Indian Commodity Market’. I would like to thank Prof. Anju Sawlani,

Faculty guide, for her valuable guidance and motivation and also, her assistance in the

project work and her valuable feedback.

It is the matter of utmost pleasure to express my bliss and deep sense of gratitude to

various persons who extended their maximum help to supply the necessary

information for the project, which became available on account of the most selfless

and honest co-operation. I am also grateful to Mr. Radheshyam (Liberian and Non-

Teaching Staff) for his sincere helping hands and providing supporting aids.

I owe the reality of this report to Prof. Anju Sawlani, whose analytical skills and

phenomenal thought process helped me in completing the project successfully.

Evidences of her vision and expertise are sprinkled throughout the report.

Even if I put all my efforts to the concise, the word of acknowledgement itself will

require more space then rest of the project. Though it is impossible to put my token of

thanks towards every person individually within the limited apace available, I have

tried to subsume everybody’s name that has made the project a successful one.

I would also like to thank my family and friends for their constant support throughout

the project. I also want to thank all the respondents who helped me gather

information and their view about the equity market.

asasasa

A C K N O W L E D G E M E N T

asasas

The project ‘Investor Perception regarding Indian Commodity Market’ is a detailed study of

the Modus Operandi of commodity exchange in India, Price Discovery Methodology,

Commodity future market, Trading mechanism & Instruments of trading, fundamental of

demand & supply concern with the main objective of making a successful career in the sector

by getting placed with one of the commodity research companies.

This project is based on the commodity markets, their significance in the economy and their

contribution towards the GDP of the country. Commodity markets are now the buzz word all

the investors are looking at the commodity market as a revenue generator. It include the role

of FMC and the Government played in the markets, the global commodity dynamics, as all

these influence the Indian commodity markets their repercussions are seen in the local

bourses.

Today the market is much shaken by one word i.e. “Banning”, so here there is detail analysis is

done on Inflation, Banning & Politics. After understanding the presence of Commodity Futures

Market in India the focus is made on the Future Outlook of Commodity Futures in the way of

suggestions. It includes the evolution of Commodity Futures Market and at present how

commodity Futures Market are working, their contribution in economy & their future. As

Commodity Futures Market are now new revenue generators for investors. It achieved Rs.

12,000 Cr. Volume in just a 4 years span of time which is having more than 200% growth p.a.

Their turnover is now equal to GDP of country i.e. 37 Lakh Cr. It contains analysis of 10

commodities, the demand and supply affecting the commodities etc.

Needless to say, no text paper or text book by itself can convey the full richness of either the

theoretical development or subtleness if practice in its chosen fields. This Project is a sincere

attempt to provide a basic understanding of the complexities of commodity market of world

finance in simple manner.

asasasa

E X E C U T I V E S U M M A R Y

asasas

asasasa

I N D E X

Chap. No. Content Page No.A INTRODUCTION 11 INTRODUCTION TO COMMODITY MARKET 22 INDIA & COMMODITY MARKET 53 MAJOR COMMODITIES 104 COMMODITY FUTURE MARKET 405 INSTRUMENTS AVAILABLE FOR TRADING 456 PARTICIPANTS OF COMMODITY MARKET 49

B NEED AND OBJECTIVES OF THE STUDY 52

C SCOPE OF THE STUDY 54

D RESEARCH METHODOLOGY 56

E LIMITATIONS OF THE STUDY 59

F DATA ANALYSIS AND INTERPRETATION 61

G FINDINGS 72

H CONCULSION AND RECOMMENDATION 74

REFERENCES 76

ANNEXURE 77