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

2) INDUSTRY PROFILE

3) COMMPANY PROFILE

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
discontent amongst
leading
cotton
mill
owners
and
merchants over the functioning 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 several futures markets in oilseeds
were functioning 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 Multicommodity 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

(5) Chennai

(3) Ahmedab
ad

(7) Indore

(11) Rajkot

(8) Kolkata

(12) Surat

(6) Hyderab
ad

(9) New
Delhi
(10) Pune

(4) Bangalore

Branch 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)
8

(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) Vishakhapatnam

ANGELS 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 AWARDED
THE 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 SERVICES
Angel 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:

ANGEL

Offline

Angel Anywhere

Angel-inet.net

PMS

Online

Angel-DIET

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 ANGEL

The 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
We
ekl
y
Re
por
t
The Industrial
Wa
tch
Stock Analysis
Flash News
Technical
Ser
vic
es:
Intraday Calls
Posting
Tra
din
g

Cal
ls
Derivative
Str
ate
gie
s
Commodities
Services:
Agro Tech
Speak
Call
evaluatio
n
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 the important 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 trading are 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 prespecified 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 consumer get 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, Gold M, Gold HNI, Silver, Silver M, Silver HNI

Oil & Oil Seeds: Castor Seeds, Soy Seeds, Castor Oil, Refined Soy Oil,
Soymeal, RBD Palmolein, Crude Palm Oil, Groundnut Oil, Mustard
Seed, Mustard Seed Oil, Cottonseed Oilcake, Cottonseed
Spices: Pepper, Red Chilli, Jeera, Turmeric
Metal: Steel Long, Steel Flat, Copper, Nickel, Tin
Fibre: Kapas, Long Staple Cotton, Medium Staple Cotton
Pulses: Chana, Urad, Yellow Peas, Tur
Cereals: Rice, Basmati Rice, Wheat, Maize, Sarbati Rice
Energy: Crude Oil
Others: Rubber, Guar Seed, Gur, Guargum Bandhani, Guargum,
Cashew Kernel, Guarseed Bandhani

NEED 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
MARKETS

WITH

COMMODITIES

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
Secondary

Primary 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 universe
Sampling Technique
Sample size

Sampling Unit:

Rajkot city
Convenience sampling
250 respondents
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

Age
3.

21 35
132

36 50
99

51 65
18

Above 66
1

Graduate
163

Under
Graduate
30

Others
7

Contact No

4..Educational Qualification

Qualification Post Graduate

50

5.

Occupation

Employees
Business working in Pvt.
Professionals
Man
Firm
71
83
55

6.

Govt.
Employees
29

Investment Pattern of The people

Instruments
Bank FD
Postal Schemes
Govt. - Secs
Mutual Funds
Insurance
Bonds/Debentures
Shares/Equity
Real Estate
Commodity

Nos.
129
64
30
126
164
13
223
51
39

Percentage
51.6
25.6
12
50.4
65.6
5.2
89.2
20.4
15.6

Others
12

7.

Instruments in which people are trading

Instruments
Equity
F&O
Commodities

Nos.

Percentage (%)

171
49
30

68.4
19.6
12

8.

Factors that are to be considered by people while jumping in to

Commodity segment.
Factors
Risk Reduction
Speculation
Investment
Arbitrage
To Increase The
Leverage

Percentage (%)
24.77
18.48
26.63
15.68

Rank
2
3
1
4

14.44

9.

Factors which people takes into consideration while taking the

decision to Commodities.

Factor
Independently
Advice of Friends/Colleagues
Broker/Agents advice
Advice of CA/Tax consultants
News Channel
Well-known Stock Broking Houses
News Papers
Business Magazines
Internet

Percentage (%)
15.86
11.33
12
8.06
10.54
11.85
11.12
10.93
8.312

Rank
1
4
2
9
7
3
5
6
8

10.

Tools preferred by the people while learning Commodities.

Tools
Classroom Teaching
Internet
Literature
Documentaries
Self-Experience
Seminars

Nos.
99
85
100
10
138
71

Percentage (%)
39.6
34
40
4
55.2
28.4

14.

Most preferred medium for trading in Derivatives & Commodities

Medium
Stock Broking Cos. (Branded)
Brokers
Franchisees
Online

Percentage (%)
31.51
27.8
15
25.7

12. commodities are traded on which exchange?

Rank
1
2
4
3

Exchange
NSE
MCX
NCDX
BSE

Percentager(%)
22.76
45.35
29.69
2.20

Rank
3
1
2
4

13.

Most preferred Broking companies of the city

Broking Company
Angel
India Bulls
ICICIdirect
Kotak Street
Sharekhan
5 Paisa
HDFC Securities
Motilal Oswal
Marwadi
Others

Percentage (%)
15.07
7.53
7.67
5.75
9.04
4.93
4.11
6.99
13.29
25.62

Rank
1
5
4
7
3
8
9
6
2
-

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 CITY

Name :-_____________________________________________________
Address:-____________________________________________________
Contact no:-__________________________________________________
1) Gender: 2) Age

Male_______

: - 21-35_____

36-50______

Female_______
51-65_____

above 65_____

3) Educational:-_________________________________
4) Occupation: - professional
_______
Employee working _______
In Pvt.firms
Other
_______

Businessmen_______
Govt. employ_______

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

Bank FD _____
Mutual fund _____
Share Equity______

Postal scheme _____

Insurance
_____
Commodity _____

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

Commodity________
F&O________

G-secs
_____
Bonds
_____
Real assets_____
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