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DECLARATION
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
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CERTIFICATE
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. AnjuSawlani
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ACKNOWLEDGEMENT
It gives me a great pleasure in presenting the Project Report on ‘Investor perception
regarding Indian Commodity Market’. I would like to thank Prof. AnjuSawlani, 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. AnjuSawlani, 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 friendsfor 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.
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EXECUTIVE SUMMARY
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.
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INDEX
Chap. No. Content Page No.
A INTRODUCTION 1
1 INTRODUCTION TO COMMODITY MARKET 2
2 INDIA & COMMODITY MARKET 5
3 MAJOR COMMODITIES 10
4 COMMODITY FUTURE MARKET 40
5 INSTRUMENTS AVAILABLE FOR TRADING 45
6 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
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