A REPORT ON TREND ANALYSIS OF COPPER

By NehaDua ROLL NO.89 Name of the organization: NIRMAL BANG

PREFACE

Its my pleasure to present this report on TREND ANALYSIS OF COPPER. The research deals with the analysis of various factors that gives the overview of the commodity market. Final Report during the internship is the summary of what the students of Management Colleges have faced and learnt during the internship period. The report helps students to put their theoretical or academic knowledge to the test and take the rightful decision in the market. This also helps them to improve their analytical skills and provide the insight for the task given to them during the internship. This final report has been taken as a part of PGDM(Post Graduate Diploma in Management), from EMPI B-School, New Delhi. The report is written in an easy language using systemat ic methodology. I have given my best efforts to cover all the aspects related to the topic and make the report purposeful.

NEHA DUA

DECLARATION

I, NEHA DUA here by declare that the project report entitled TREND ANALYSIS OF COPPER is based on my own work and my indebtedness to other work/ publications, if any have been duly acknowledged at the relevant place. PLACE: NEW DELHI DATE:

NEHA DUA

ACKNOWLEDGEMENTS
I would not have completed this report without the guidance, help and support of certain people who acted as guides, friends and torch bearers along the way. A Report, when prepared with true spirit goes a long way in enriching many people's knowledge and also it serves as a vital ingredient in the learning process of the individuals involved in preparing it. The present project report has been undertaken under the inspiring and valuable guidance of Mr. RavikantChopra and Miss Neeru(Company Guide) and Mr.A.V.K Murthy (Faculty Guide). I would like to thank all of them for giving instructions, support and suggestions without which I could not make the project as it is in present form. I am also thankful to EMPI BUSINESS SCHOOL for introducing this inter nship program as a significant aspect of the MBA Degree without which I would have had no practical exposure of real Business Environment. Lastly, I wish to express my gratitude to my colleagues and friends for their constant encouragement and support.

Table of Content
Chapter No. Contents Executive summary Chapter 1 Chapter 2 Company profile Introduction to Commodity Market 2.1) Structure of Commodity market in INDIA 2.2) Details about COPPER 2.3) Study of COPPER & GOLD Prices 2.4) Research Methodology 2.5)Rational of study 2.6) Limitation Chapter 3 3.1) Questionnaire 3.2) Analysis of Questionnaire 3.3) Recommendation 3.4) Conclusion 3.5) Bibliography Page No 6 7-10 11-12 13-17 18-23 24-25 26-27 28 29 32-33 34-44 45 46-48 49

EXECUTIVE SUMMARY
This project is completely based on market research of Awareness of Commodity Market. Under this research, we have taken 100 sample sizes of which 100 questionnaires belong to Retail investors. On the basis of that we have assessed the awareness of the people towards commodity market, their preference towards trading in commodity market & in context to segment (Agro, Precious metals). For this research, firstly I draft a questionnaire for the research purpose & then I look upon the working class people of my society for my research. While pursuing my research work I came to know that majority of Indian investors are not aware of organized commodity market; their perception about is of risky to very risky investment. Many of them have wrong impression about commodity market in their minds. It makes them suspicious towards commodity market. Concerned authorities have to take initiative to make commodity trading process easy and simple. There is no doubt that in near future commodity market will become Hot spot for Indian farmers rather than spot market. And producers, traders as well as consumers will be benefited from it. But for this to happen one has to take initiative to standardize an d popularize the Commodity Market.

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Some key steps of the company :

Success sutras of Nirmal Bang Commodities:The success story of the company is driven by their greatest asset. Drawn from a diversity of professional backgrounds, their blend of experience, skill and dedication is shared with all our clients.

Vision of Nirmal Bang Commodities:To create valuable relationships And Provide the best financial services most professionally .

Mission statement:y

y y y y y y

Innovative and enthusiastic. We emphasize adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. To Double the market share in retail Equity & Commodity broking market. To Increase the trading turnover. To expand the network of our branches. To Target foreign institutional business and achieve significant volume of the total volume in the industry. To provide international commodity trading platform. To Provide high speed hassle free services to clients by using latest technology.

As the project is on the COMMODITY; COPPER, it is necessary to know the terms and the exchange on w hich it is traded. The details are giv en as belowCommodity futures are standard futures contract, which are exchange traded; these contracts have their respective commodity as its underlying asset and derive the dynamics from it. Such contracts allow the participant to buy and sell a certain commodity at a certain traded price for future delivery. A commodity futures contract is generally leveraged giving opportunity for all types of investors to enter. Typically such a contract has an expiry and deliv ery attached with it. Commodity futures are stable speculative instruments and also a good portfolio diversifier. India has a long history of commodity futures trading. The cotton exchange at Bombay, Bombay Cotton Exchange, was the first institution to op erate the cotton contract in 1921. However, after 1940s, futures trading faced rough weather because

of the Governments urge to control inflation. But the situation has undergone a lot of change since then. For over three decades since mid 1960s, the co mmodity traders in the country had been demanding resumption of futures trading in major farm commodities and their products. With the gradual withdrawal of the government from various sectors in the post liberalization era, the need has been felt that v arious 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 Accordingly, in the National Agricultural Policy of 2000 and in the Budget Speech (2002-03) of the Finance Minister, due importance was give n for extension of forward and futures markets to all major agro commodities. At present the futures contracts for period up to six months are being traded in a variety of commodities. Futures trade is allowed in items like gold, silver, copper, crude oil, wheat, pulses, pepper, castor oil, sugar, soybean, coffee, etc.

COMMODITY MARKET

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Introduction to Commodity Market

What is Commodity?
Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines goods as every kind of movable property other than actionable claims, money and securities. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non -ferrous metals, cereals and pulses, ginned and un -ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices. Etc.

What is a commodity exchange?

A commodity exchange is an association or a company or any other body corporate organizing futures trading in commodities for which license has been granted by regulating authority. What is Commodity Futures? A Commodity futures is an agreement betwe en two parties to buy or sell a specified and standardized quantity of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract on the commodity futures exchange. The need for a futures market arises mainly d ue to the hedging function that it can perform. Commodity markets, like any other financial instrument, involve risk associated with frequent price volatility. The loss due to price volatility can be attributed to the following reasons:

Consumer Preferences: - In the short-term, their influence on price volatility is small since it is a slow process permitting manufacturers, dealers and wholesalers to adjust their inventory in advance. Changes in supply: - They are abrupt and unpredictable bringing ab out wild fluctuations in prices. This can especially noticed in agricultural commodities where the weather plays a major role in affecting the fortunes of people involved in this

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industry. The futures market has evolved to neutralize such risks through a mechanism; namely hedging.

The objectives of Commodity futures: Hedging with the objective of transferring risk related to the possession of physical assets through any adverse moments in price. Liquidity and Price discovery to ensure base minimum volume in trading of a commodity through market information and demand supply factors that facilitates a regular and authentic price discovery mechanism. Maintaining buffer stock and better allocation of resources as it augments reduction in inventory requirement and thus the exposure to risks related with price fluctuation declines. Resources can thus be diversified for investments. Price stabilization along with balancing demand and supply position. Futures trading leads to predictability in assessing the domestic prices, which maintains stability, thus safeguarding against any short term adverse price movements. Liquidity in Contracts of the commodities traded also ensures in maintaining the equilibrium between demand and supply. Flexibility, certainty and transparency in purchasing commodities facilitate bank financing. Predictability in prices of commodity would lead to stability, which in turn would eliminate the risks associated with running the business of trading commodities. This would make funding easier and less stringent for banks to commodity market players.

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I Y
Ministry of Consumer Affairs

A KE I

IA

FMC (Forward Market Commission)

Commodity Exchange

National Exchange

Regional Exchange

NCDEX

MCX

NMCE

NBOT

20 other regional
exchanges

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NCDEX
National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally managed online multi commodity exchange. NCDEX is the only commodity exchange in the country promoted by national level institutions. This unique parentage enables it to offer a bouquet of benefits, which are currently in short supply in the commodity markets. The institutional promoters of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills. The NCDEX Platform National Commodity & Derivatives Exchange Limited (NCDEX), a national level online multi- commodity exchange, commenced operations on December 15, 2003. The Exchange has received a permanent recognition from the Ministry of Consumer Affairs, Food and Public Distribution, Government of India as a national level exchange. The Exchange, in just over two years of operations, posted an average daily turnover (one-way volume) of around Rs 4500- 5000 crore a day (over USD 1 billion). The major share of the volu mes come from agricultural commodities and the balance from bullion, metals, energy and other products. Trading is facilitated through over 850 Members located across around 700 centers (having ~20000 trading terminals) across the country. Most of these te rminals are located in the semi-urban and rural regions of the country. Trading is facilitated through VSATs, leased lines and the NCDEX is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate f or Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange with an independent Board of Directors and professionals not having any vested interest in commodity markets. It is committed to provide a world -class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. NCDEX is regulated by Forward Market Commission in respect of futures trading in commodities. Besides, NCDEX is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legisla tions, which impinge on its working. NCDEX is located in Mumbai and offers facilities to its members in more than 550 centres throughout India. The reach will gradually be expanded to more centres. Shareholders of NCDEX : NCDEX is promoted by a consortium of four institutions. These are National Stock Exchange (NSE), ICICI Bank Limited, Life Insurance Corporation of India (LIC) and National Board for Agriculture and Rural Development (NABARD). Later on their shares were diluted and more instituti ons became shareholders of NCDEX. These are Canara Bank, CRISIL Limited, Indian Farmers Fertilisers Cooperative Limited (IFFCO), Punjab National Bank (PNB), Goldman Sachs, Intercontinental Exchange (ICE) and Shree Renuka Sugars Ltd. All the ten shareholders (now ICICI is not a shareholder of NCDEX) bring along with them expertise in closely related fields such as agriculture, rural banking, co -

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operative expertise, risk management, intensive use of technology, derivative trading besides institution building expertise.

Commodities Traded on NCDEX :

NCDEX gives priority to commodities that are most relevant to India, and where the price discovery process takes place domestically. The products chosen are based on certain criteria such as price volatility, shar e in GDP, correlation with global markets, share in external trade, warehousing facilities, traders distribution, geographical spread, varieties etc. List of commodities offered for futures trading on NCDEX are : SPICES Pepper chilli jeera turmeric coriander CEREALS OIL AND OIL SEEDS PRECIOUS METALS Caster seeds Gold Sesame seeds Silver Cotton seed oilcake Platinum Soy bean METALS Refined soy oil Steel Soybean meal(local and Copper export) Wheat Mustard oil Zinc Barley Kachhighani mustard oil Aluminium Maize(yellow/red) Rapseed- mustard seed Nickel oilcake PULSES Crude palm oil ENERGY Chana RBD Palmolein Crude Oil Masoor Groundnut in shell Furnace Oil Yellow peas Groundnut expeller oil Thermal Coal OTHERS PLANTATION Brent crude oil PRODUCT Guar seeds Rubber Natural Gas Potato Coffee-Robusta cherry FIBRES AB Mentha Oil Cashew Indian 28.5 mm cotton Guar Gurr POLYMERS V 797 Kapas CER Polypropylene Medium staple cotton Gur Linear low density Kapas polyethylene Almond Polyvinyl Chloride Raw Jute NOTE- Currently, rice, sugar, urad and tur are de-listed(as on 1 April 2010)

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Leading five commodities traded on NCDEX:

2004-05 Guar Seeds silver Refined Soy Oil chana Guar gum 2005-06 Guar Seeds chana urad silver gold 2006-07 Guar Seeds chana gold silver pepper 2007-08 Guar Seeds pepper Refined Soy Oil chana jeera 2008-09 RM Seeds Guar Seeds Soybean seeds turmeric jeera

MCX
MCX stands of MULTI-COMMODITY EXCHANGE. MCX an independent and de mutualized multi commodity exchange has permanent recognition from Government of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. Key shareholders of MCX i nclude Financial Technologies (I) Ltd., State Bank of India (Indias largest commercial bank) & associates, Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank. Headquartered in Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodity futures markets. Through the integrat ion of dedicated resources, robust technology and scalable infrastructure, since inception MCX has recorded many first to its credit. Inaugurated in November 2003 by ShriMukeshAmbani, Chairman & Managing Director, Reliance Industries Ltd, MCX offers future s trading in the following commodity categories: Agri Commodities, Bullion, Metals - Ferrous & Non-ferrous, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has built strategic alliances with some of the largest players in commodities eco-system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors' Association of India, Pulses Importers Association, ShetkariSanghatana, United Planters Association of India and India Pepper and Spice Trade Association. Today MCX is offering spectacular growth opportunities and advantages to a large cross section of the participants including Producers / Processors, Traders, Corporate, Regional Tradi ng Centers, Importers, Exporters, Cooperatives, Industry Associations, amongst others MCX being nation -wide commodity exchange, offering multiple commodities for trading with wide reach and penetration and robust infrastructure, is well placed to tap this vast potential.

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Following diagram gives a fair idea about working of the Commodity market :

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PPE
i i t t i . t fi t i lt t B A .A t . it t i tt l l i i l l i t , t t f t t l ti l ti t f l t ft ft i i . t ,t t l t t it l it ti f

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Worl

opper production
egion % A i A erica Europe Africa ceania

otal

Industrial consumption

Industry % Electrical/Electronic onstruction ransportation onsumer/ eneral Industrial mach.

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haracteristics of
       

opper

opper ranks third in orld metal consumption after steel and aluminum. It is a product hose fortunes directly reflect the state of the orld's economy . opper is the est non-precious metal conductor of electricity. he metal's exceptional strength, ductility, and resistance to creeping and corrosion, makes it the preferred and safest conductor for uilding iring. opper is also used in power cables, either insulated or uninsulated, for high, medium and low oltage applications. opper is an essential component of energy efficient motors and transformers and automobiles.

APPLI ATI N
 he global demand for copper continues to grow; world refined copper usage has % in the last years owing to expanding sectors  Surged by around  such as electrical and electronic products, building construction, industrial machinery  and equipment, transportation equipment, and consumer and general products.  oppers chemical, physical, aesthetic properties make it a material of choice  in high technology applications. Since copper is biostatic, that is bacteria does not  grow on its surface, it is also used in air conditioning systems, and as an  anti-germ surface in hospitals.

copper usage- 2009

construction 33% electrical and electronic products 33%

Industrial machinery 12%

transport 11%

consumer products 11%

Su

:
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Copper mine production was up nearly 2% from 15.805 million MT in 2009 to 16.099 million MT in 2010. In 2010, global refined copper production was 19.186 million MT, up from 18.653 million MT in 2009, and global refined copper consumption was 19.200 million MT,compared with 18.243 million MT in the previous year. After substantial surpluses in 2008 and 2009, when it had seen an oversupply of 343,000 MT and 410,000MT respectively, the global copper market witnessed deficit of 14000 MT in 2010 .

Global Scenario
 Economic, technological and societal factors influ ence the supply and demand of copper. As society's need for copper increases, new mines and plants are introduced and existing ones expanded.  Land-based resources are estimated at 1.6 billion tons of copper, and resources in deep-sea nodules are estimated at 0.7 billion tons.  The global production of refined copper is around 15 million tons  While Chile accounts for 34% of the total world copper mine production, Peru, USA, China, Australia and Indonesia, together are responsible for around 32%.  Growth in refined copper usage has been expecially strong in Asia where demand has expaned more than 5-fold in less than 30 years.  Major refined copper exporting countries are Chile, Zambia, Japan, Russia and Peru, while major refined copper importing coun tries are China, USA, Germany, Italy and Taiwan.

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Indian Scenario
 Indias production of refined copper is approximately around 4% of the total world production and in terms of figures it is around 600,000 MT  Birla Copper, Sterilite Industries are two major private producers and Hindustan Copper Ltd the public sector producers.  India is emerging as net exporter of copper from the status of net importer on account of rise in production by three companies.  Copper goes into various usage such as Building, Cabling for power and telecommunications, Automobiles etc. Two major states owned telecommunications service providers; BSNL and MTNL consume 10% of country's copper production. Growth in the building construction andautomobile sector would keep demand of copper high.

World Copper Markets

 LME and NYMEX are the two international markets, which provide direction to the copper prices.  The eight leading refining nations, viz., United States,Japan, Chile, Canada, Zambia, Belgium, and the Federal Republic of Germany account for 67% of total refined metal production.  Factors Influencing Copper Markets  Copper prices in India are fixed on the basis of the rates that rule on the international stock market, and rupee and US dollar exchange rates .  Economic events such as national industrial growth, global financial crisis, recession, and inflation affect metal prices.
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 Commodity-specific events such as the construction of new production facilities or processes, new uses or the discontinuance of his toric uses, unexpected mine or plant closures (natural disaster, supply disruption, accident, strike, and so forth). Or industry restructuring, all affect metal prices.  Government set trade policy (implementation or suspension of taxes, penalties and quotas) that affect supply by regulating (restricting or encouraging) material flow.  Geopolitical events involving governments or economic paradigms and armed conflict can cause major changes.  There is also national economic growth factor. Societies, as they d evelop, demand metals in a way that depends on their current economic position.

IMPORTANT GLOBAL EXCHANGES :

EXCHANGE LME SHANGAI FUTURES EXCHANGE (SHFE) COMEX MCX PRODUCT GRADE A CATHODES STANDARD COPPER CATHODES GRADE 1 ELECTROLYTIC COPPER GRADE 1 ELECTROLYTIC COPPER LOT SIZE(MT) 25 5 IST 6:30 TO 00:30* 17:10 TO 22:40** 6:30 TO 9:00 11:30 TO 13:30 18:00 TO 17:15***

25000 POUND 1

10:00 TO 23:30# (MON-FRI) 10:00 TO 14:00(SAT) * LME SELECT ** LME Ring timing (start time- ring session, end time- kerb trading) *** ET: NY Time- electronic trading. # day light timing 100:00 to 23:55

COPPER SPECIFICATIONS
SYMBOL Description Trading period Trading session Contract Months Expiry date Trading unit Quotation/base value COPPER COPPER MMMYY MONDAY TO SATURDAY MONDAY TO FRIDAY- 10:00 TO 23:30. SATURDAY 10:00 TO 14:00 Bi- monthly contracts Last day of the month 1 MT RS/PER KG
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Tick size Maximum order size Daily price limit Initial margin Special margin

Maximum allowable open position

Delivery logic Delivery center Delivery unit Due date rate (DDR) calculation

5 Paise per kg 70 MT 4% Minimum 5 % or based on SPAN whichever is higher In case of additional volatility, a special margin at such percentage, as deemed fit; will be imposed immediately on both buy and sale side in respect of all outstanding position, which will remain in force till volatility persists, after which the special margin will be relaxed. FOR INDIVIDUAL CLIENTS :- 5000 MT For a member: 25000 MT or not more than 15% of the market-wide open position, whichever is higher. Both options Within 20 km outside Mumbai octroi limit. 9MT with tolerance limit of +/ -% (90kg) Due date rate is calculated on the last day of the contract expiry, by taking international spot price of copper and it would be multiplied by Rupee US$ rate as notified by the Reserve Bank Of India.

STUDY OF COPPER PRICES AS COMPARED TO GOLD

As per the recent study of copper and gold prices, we can observe a lot of fluctuation in the prices of both. The downgrade of the US sovereign debt by Standard and Poors to AA+, from the decades-untouched rating of AAA, has given another shot in the ar m to already rising gold price. As per the recent data, the gold price touched Rs.26,000 per 10 grams. On the other hand, the prices of copper has fall down to Rs.403. copper prices act as a strong indicator of economic growth.

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RESEARCH METHODOLOGY
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Research methodology is the Procedure adopted for conducting the research study. Research methodology should be carefully planned as the accuracy reliability and adequacy of results is totally depending on the Research Methodology followed. It gives the researcher a guideline by which he/she can decide which techniques and procedures will be applicable to a given problem. Moreover it helps in the evaluation of research by other also. So for the research to be successful, purposeful and effective the researcher should plan the Research Methodology before preceding the study. The following aspect should be considered while designing a Research Methodology. Research Problem The first step while conducting a research is to carefully define a problem as the report emphasis on the TREND ANALYSIS OF COPPER

Research design:
 A research study conducted scientifically has a specific framework of research from the problem identification to the research study. The framework of conducting the research is known as Research Design.  After defining the research problem in a clear -cut terms it will be required to prepare such a research design which will state the conceptual structure within which the research would be conducted.  The research study presently done is both subjective and exploratory  The study is subjective because.  The sampling technique was convincing sampling.  Use of survey method with the sample population was done in order to extract data.  Structural and well thought out instru ments for collection of data were used.  This measurement-based methodology focuses on market measurement, analysis, forecasting, strategy, development and monitoring. Data retrieved from the secondary and primary research regarding the awareness of commodity market was compiled, analyzed and to provide a market structure and market forecasts .

Sampling Pop lation

For conducting the research study, the population selected was the Investors of India.

Sample size

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Investors of south Delhi region have been taken for the research purpose. In order to realize the study the objectives a considerably volume of both primary and secondary data is needed. It has been therefore found necessary to conduct an Interview schedule for gathering relevant data from the users. Primary Data has been collected from the investors during May 11 Jun 11 with the help of a structured Questionnaire with convenience judgment sample of 100 respondents have been taken for carrying out the study. These respondents were the working class & businessmen of the society. Secondary Data the information regarding the Indian commodity market has been drawn from various published sources. They include Professional business Journals and Magazines, besides the Newspapers. The data relating to Nirmal Bang Commodities has been collected from company website and its published sources. This study is necessarily based on the limited knowledge and little practical exposure the constraints of resources and time have further imposed l imits to the study boundaries.

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RATIONALE FOR STUDY

 The main objective of the study is to find out the awareness level of the persons towards commodity market.  The need for this can be explained if one knows the importance of understanding the Customer awareness. So in the following paragraph the Customer awareness and its role in the success of an organization have been explained.  Customer awareness is taken up to boost the sales of a product by the company. Companies having service facilities may service a product and price is according and provide it through the sub brokers and franchise by its distribution network.  Considering the fact that consumer according to the time need, want and the purchasing power, it depends on the services therefore, the ma rketers rely on the marketing mix to cater to the customers efficiently and effectively.  So the companies giving the service, pricing and planning them have to carefully look into the minds of the consumers and place the services favorably in the minds of the consumers.

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LIMITATIONS
 The respondents of the questionnaire are very busty and could not afford more time to answer. The average time to response was 5 -6 minutes only.  A limited sample size of 100 customers was considered because of time constraint. An assumption is made that the sample represents the whole population. It will not carry the total reflection of the copier market. Total sample size is comparatively less to represent the entire population.  The data was of primary nature. So the degree biases were relatively high as the sample was randomly selected.

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QUESTIONNAIRE
Analysis of Commodity Market (Survey) Name . Age . Mail id ..Gender . Q.1 In which sector do you work? a) Government b) Self employed e) Other c) Private d) Business

Q.2 What is your current Annual Income (in Rs)? a) Below 200000 c) 400000-800000 b) 200000-400000 d) Above 800000 Q.3 What percentage of your income do you invest? a) Below 10% c) 25 -50% b) 10-25% d) Above 50% Q.4 Please specify the investment pattern. a) Short-term c) Long -term b) Mid-term d) Mix

Q.5 Do you invest in Commodity market? a) Yes If yes, then refer to questions no. 6 to 9 If no.then refer to question no. 10

b) No

Q.6 In which Commodity exchange do you transact? a) MCX c) NSEL b) NCDX d) Others (Please Specify) Q.7 In which segment did you transact? a) Natural Metals (Copper, Natu ral Gas) b) Base Metals (Lead, Zinc) Soybean) c) Precious Metals (Gold, Silver) d) Agro commodities (Potato, Pepper,

Q.8 Since how long you been investing in commodity market? a) Less than 1 year c) 2-3 years b) 1-2 years d) Above 3 years

Q.9Whom do you prefer to deal with while trading in commodity market?

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a) Brokers b) Online

c) Sub brokers d) All

Q.10 Would you like to invest in commodity market in near future? a) Yes b) No If yes, then refer to questions no. 11 to 13 Q.11 Rate the following attributes which influence your decision in choosing a Brokerage House on the scale of 1 to 5 1 (Least 2(Less 3 (Neutral) 4(More 5 (Most Preferred) Preferred) Preferred) Preferred) Customer Service Proper Guidance Regular Updates Trustworthiness Brokerage Charges Q.12 In which segment did you want to transact? a) Natural Metals (Copper, Natural Gas) c) Precious Metals (Gold, Silver) b) Base Metals (Lead, Zinc) d) Agro commodities (Potato, Pepper, Soybean) Q.13 Which Commodity exchange do you prefer for your investment? Ans. . Q.15 Do you know anything about NIRMAL BANG Pvt. Ltd.? a) Yes b)No

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ANALYSIS OF THE QUESTIONAIRE

Q.1: In which sector do you work? SECTOR OF RESPONDENTS Valid Frequency Percent Percent GOVERNMENT 20 20.0 20.0 SELF 10 10.0 10.0 EMPLOYED PRIVATE 55 55.0 55.0 BUSINESS 10 10.0 10.0 OTHERS 5 5.0 5.0 Total 100 100.0 100.0 Cumulative Percent 20.0 30.0 85.0 95.0 100.0

Inference: From the above graph it has been shown that out of 100 respondents, More than half of the respondents were working in private sector & the rest of the respondents were apportioned in different sectors.

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Q.2: What is your current Annual Income (in Rs)?

INCOME OF RESPONDENTS Valid Frequency Percent Percent 50 50.0 50.0 40 10 100 40.0 10.0 100.0 40.0 10.0 100.0 Cumulative Percent 50.0 90.0 100.0

200000400000 400000800000 ABOVE 800000 Total

Inference : From the above graph, it has been shown that out of 100 respondents 50 % of the respondents lie in the income category of 200000 -400000, 40 % lie in the category of 400000-800000 & only 10 % of the respondents having income of more than 800000. Q.3: What percentage of your income do you invest?
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INCOME TO INVESTMENT RATIO Valid Frequency Percent Percent 50 50.0 50.0 30 15 5 100 30.0 15.0 5.0 100.0 30.0 15.0 5.0 100.0 Cumulative Percent 50.0 80.0 95.0 100.0

BELOW 10% 10-25% 25-50% ABOVE 50% Total

Inference: From the above graph it has been shown that out of 100 respondents, half of the respondents i.e. 50% invest less than 10% of their income, 30% fall in the category of 10-25% & 5% of the respondents invest more than 50% of their income. This shows that peoples working in government sector would have the tendency to invest more of their income.

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Q.4: Please specify the investment pattern.

INVESTMENT PATTERN OF RESPONDENTS Valid Frequency Percent Percent SHORT 10 10.0 10.0 TERM MID TERM 35 35.0 35.0 LONG TERM 35 35.0 35.0 MIX 20 20.0 20.0 Total 100 100.0 100.0

Cumulative Percent 10.0 45.0 80.0 100.0

Inference From the above graph it has been shown that only 10% of the respondents prefer short-term investments, 35% each respondents prefer mid -term &long term investment pattern and the rest 20% prefer the mixture of all. This shows that around one-third of the respondents done their investment for the future contingencies.

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Q.5: Do you invest in Commodity market? DO YOU INVEST IN COMMODITY MARKET Valid Frequency Percent Percent YES 20 20.0 20.0 NO 80 80.0 80.0 Total 100 100.0 100.0

Cumulative Percent 20.0 100.0

Inference: From the above graph, it has been shown that only 20% of the respondents prefer to invest in commodity market as their investment, this shows the less awareness of the respondents towards commodity market. Government agencies & NGO should do some seminars/conferences to educate the investors about commodity market.

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Q.6: In which Commodity exchange do you transact? IN WHICH COMMODITY EXCHANGE DO YOU TRANSACT Valid Cumulative Frequency Percent Percent Percent MCX 20 20.0 100.0 100.0 DO 80 80.0 NOT INVEST Total 100 100.0

Inference: From the above table, it has been shown that out of 100 respondents, only 20% of the investors invest in commodity market & out of 20 investors who invest in commodity market all of the 20 investors invest in MCX.

Q.7: In which segment did you transact?

IN WHICH SEGMENT DID YOU TRANSACT Valid Frequency Percent Percent 20 20.0 100.0 80.0 100.0 Cumulative Percent 100.0

Total

PRECIOUS METALS DO NOT INVEST 80 100

Inference: From the above table, it has been shown that out of 100 respondents, only 20% of the investors invest in commodity market & and all the investors invest in only one segment i.e. Precious metals (Gold, Silver). This is because of the return in the gold & silver future market.

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Q.8: Since how long you been investing in commodity market?

HOW LONG YOU BEEN INVESTING IN COMMODITY MARKET Valid Cumulative Frequency Percent Percent Percent LESS THAN 1 5 5.0 25.0 25.0 YR 1-2 YR 5 5.0 25.0 50.0 2-3 YRS 5 5.0 25.0 75.0 ABOVE 3 YRS 5 5.0 25.0 100.0 Total 20 20.0 100.0 DO NOT 80 80.0 INVEST Total 100 100.0

Inference: From the above table, it has been shown that out of 100 respondents, only 20% of the investors invest in commodity market & out of 20 investors who invest in commodity market, 25% of the respondents fall in each of the category i.e. 25% of respondents have been investing in commodity market from less than 1 year, 25% from 1-2 year, 25% from 2-3 year & the rest 25% have been investing in commodity market from more than 3 years.

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Q.9: Whom do you prefer to deal with while trading in commodity market?

PREFER TO DEAL WHILE DEAL IN COMMODITY MARKET Valid Cumulative Frequency Percent Percent Percent BROKERS 10 10.0 50.0 50.0 ONLIINE 5 5.0 25.0 75.0 SUB 5 5.0 25.0 100.0 BROKERS Total 20 20.0 100.0 DO NOT 80 80.0 INVEST Total 100 100.0

Inference: From the above table, it has been shown that only 20% of the investors invest in commodity market out of which 50% of the respondents prefer Brokers for their transactions, 25% of the prefer sub brokers for their transactions & the rest 25% of the respondents have been doing their transactions by their by their own i.e. Online.

Q.10: Would you like to invest in commodity market in near future?

WOULD YOU LIKE TO INVEST IN COMMODITY MARKET IN FUTURE

YES NO Total Already Investin g Total

Frequenc y Percent 10 10.0 70 80 20 70.0 80.0 20.0

Valid Cumulative Percent Percent 12.5 12.5 87.5 100.0 100.0

100

100.0

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Would ypu like to invest in commodity market in near future?

YES 10% NO 70% Already invested 20%

Inference: rom the above table, it has been shown that only . % of the respondents would like to invest in commodity market in near future & the rest . % of the respondents would not like to invest in commodity market which clearly reflects the awareness of commodity market in the respondents. . : In which segment did you want to transact

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IN WHICH SEGMENT DID YOU WANT TO TRANSACT

Natural metals 20%

Precious metals 75% Base metals 4% Agro commodities

. o

you

know

about

BA

PV

NIRMAL BANG

YES 19% NO 81%

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FINDINGS
1.The level of awareness among the investors about Nirmal Bang is very low 2.Most of the investors are businessman, the tendency of investing is much high among the businessmen than those involved in ser vice. 3.Most of the investors are invest their money from Kotak securities, Sharekhan, MotilalOswal and very few of them are known about Nirmal Bang securities pvt.ltd. 4. The most popular source of information about the market among the investors are television and newspaper followed by internet and business magazines. 5. People are reluctant to invest in commodities apart from Gold, Silver etc. This is due to the lack of knowledge about the other commodities in them.

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RECOMMENDATION
Keeping in mind the preference and demand of the people in different locations and studying both channel business model and own branch model and comparing the advantages and disadvantages of the models I would like to provide some suggestions which may help Nirmal Bang to choose proper expansion strategy for the growth of its market share in Eastern Region.  Improve the brand awareness of Nirmal Bang by increasing advertisements and promotional activities like performing campaigning prog rams. This will improve the brand of NirmalBang which will help to attract more clients.  Spreading awareness about different types of commodities among the potential buyers would help them to make them trade in the areas not very popular, thus, encouraging small investors to enter into commodity market.  Strong database and regular follow - up of it would help them to crate a goodwill among its existing customers. Organizing investors meet at regular interval would be beneficial for their business.

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CONCLUSION
After almost two years that commodity trading is finding favor with Indian investors and is been seen as a separate asset class with good growth opportunities in Gold, Silver Copper etc. For diversification of portfolio beyond shares, fixed deposits and mutual funds, commodity trading offers a good option for long -term investors and arbitragers and speculators. And, now, with daily global volumes in commodity trading touching three times that of equities, trading in commodities cannot be ignored by Indian investors. Online commodity exchanges need to restore certain laws governing futures in commodities to make the markets more attractive. The national multi -commodity exchanges have unitedly proposed to the government that in view of the growth of the commodities market, foreign institutional investors should be given the go -ahead to invest in commodity futures in India. Their entry will deepen and broad base the commodity futures market. As a matter of fact, derivative instruments, such as futures, can help India become a global trading hub for select commodities. Commodity trading in India is poised for a big take -off in India on the back of factors like global economic recovery and increasing demand from China for commodities. Considering the huge volatility witnessed in the equity markets recently with the Sensex touching 19000 level commodities could add the require d zing to investors' portfolio. Therefore, it won't be long before the market sees the emergence of a completely redefined set of retail investors in commodity market too.

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LEARNING/WORKING TILL DATE

The 2months at Nirmal Bang had been a very fruitful experience.I realized that no matter how much good we are in learning from books, the real situation is faced when one enter into the real market.The corporate structure is completely different. With NIRMAL BANG I got the chance to implement my marketing knowledge and skill to develop the business of the franchisee. DATABASE COLLECTION The initial task was to create a database of the potential individual client. The database was formed through various methods. Firstly, the na me and phone numbers of the investors were collected from the internet and from newspaper. Secondly, initially I had to accompany my seniors to campaigning programs where name and phone numbers of individual clients were collected. FIXING APPOINTMENTS The next step in acquiring clients were to give them a call and finalizing an appointment with the interested individuals. VISITINGS POTENTIAL CLIENTS After the appointment is fixed, the next step was to visit these potential clients. I was most of the time accompanied by a senior while visiting any client. I had to visit many clients mostly in Vasantkunj, Hauzkhas,Noida etc. In these client visits, we used to pitch our product and services according to the needs of the clients. FOLLOW UP PROCESS Most of the potential clients were not readily convinced at the first visit. Thus I had to keep in touch with these clients and updating my seniors with the present situation CLOSING DEAL When a client is convinced, we needed to close the deal by filling up our f orms and getting the required documents like Xerox of PAN card, Xerox of address proof, photograph, etc. When all these formalities were co mpleted, only then the deal was completed

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BIBLIOGRAPHY
For the preparation of project and other required concepts following websites are consulted for the information www.nirmalbang.com www.answers.com www.businessstandard.com www.google.com Following books, magazine and newspapers are also consulted: 1) Business World 2) Business Economy 3) The Economic Times

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